Federal Tax Update Podcast

This week we look at: 2024 inflation adjusted retirement numbers released by the IRS MeF 1040 shutdown date announced by the IRS Trust found liable for transferee tax in failed Son-of-BOSS shelter to offset stock sale gain IRC §41 refund claim grace period extended for yet another year Tax Court refuses to expand equitable relief for missing 90-day deadline to file petition

This week we look at Taxpayers can’t rely on paid preparer as reasonable cause for late filing, even when using electronic filing IRS could assert negligence penalty (and obtain supervisory approval) after failing to obtain approval for substantial underpayment penalty IRS makes “temporary” electronic signature program permanent by moving it into the Internal Revenue Manual

This week we look at PTIN renewals are now open for 2024 IRS announces program to allow for withdraw of ERC claims Actor’s estate loses in attempt to claim he had validly rolled over a non-traditional investment held in his IRA

This week we look at Sloppy records cost CPA the vast majority of his business deductions IRS issues warning about art deduction tax promotions aimed at high-income taxpayers IRS gives details on transfers of electrical vehicle credits to dealers beginning in 2024 Copyright 2023, Kaplan, Inc.

This week we look at: IRS reduces PTIN fees substantially Wash sale rules do not apply to losses on disposition of money market funds IRS highlights new capabilities added to TaxPro accounts Employers can set up leave-based donation programs for 2023 Hawaii wildfire relief FinCEN grants 60 additional days for entities created in 2024 to file initial reports

This week we look at: FinCEN provides guide to small businesses for beneficial ownership reporting under the Corporate Transparency Act Taxpayer cannot rely on the mailbox rule to prove timely mailing/filing of tax return, as §7502 is the sole way of proving timely postmark and get presumption of delivery Impact of receipt of a CP2100/2100A notice on backup withholding

This week we look at: Just having a CPA prepare a taxpayer’s return does mean the taxpayer will get reasonable cause relief for assessments IRS announces halt to processing of new ERC claims until after 2023, will slow processing of claims currently in progress

This week we look at: IRS make last minute change to K-2/K-3 FAQ for 2022 returns Preliminary guidance for §174 changes made in TCJA that took effect in 2022 issued by the IRS Copyright 2023, Kaplan, Inc.

This week we look at: HHS sends letter to DEA recommending that marijuana be reclassified as a Schedule III drug General guidance issued determining tax status of 2023 state payments - and IRS asks for comments prior to giving additional guidance IRS clarifies limits of 2007 CCA on ESBTs and NOLs News release on electronic filing of Form 8300  

This week we look at: Proposed regulations issued for digital asset broker reporting on Form 1099-DA IRS delays requirement for high income employees to make employer plan catch-up contribution to designated Roth accounts until plan years beginning after December 31, 2025 2024 health care premium tax credit percentages published by the IRS

This week we look at: Limited relief likely coming for beneficial ownership reporting IRS being challenged in an attempt to treat state law limited partners as receiving SE income Rent your home to your business for 13 days each year plan mainly failed Advance memo states IRS objection to a marketed trust tax avoidance plan IRS memo explains credit unions can only claim COVID ERC on 2021 wages

This week we look at: Deduction for non-qualified deferred compensation not accelerated for the seller when the liability is transferred to the buyer of a business  Tax professionals and taxpayers warned about issues with certain employee stock ownership plan (ESOP) arrangements Reduction of non-recourse debt amount was added to sales proceeds, not a cancellation of debt so no §108 relief was available

This week we look at: IRS rules cryptocurrency staking rewards are taxable when taxpayer obtains dominion and control Interim guidance issued for home energy audit tax credit under IRC §25C added by IRA 2022 Proposed regulations issued to add monetized installment sales to listed transactions

This week we look at: Oversight Subcommittee of House Ways & Means Committee holds a hearing on ERC issues, discusses potential amnesty program IRS ending most announced revenue officer visits Taxpayer finds out that there may very well be a tax consequence when you borrow against your life insurance policy and then let the policy lapse

This week we look at: IRS memo makes it clear the agency is very skeptical about extended supply chain ERC claims Third Circuit rules that equitable relief is available for failure to file Tax Court petition in 90 day period for a deficiency IRS asked by Tax Court to justify suspense account method for losses deducted in excess of basis in closed years Taxpayers had to pay tax on funds taken from IRA/pension funds that were paid to fraudster

The IRS looks at: IRS extends SECURE Act inherited IRA RMD relief for one additional year, adds special rollover rule for those born in 1951 due to SECURE 2.0 Act changes IRS grants relief to victims of Vermont flooding. Failure to attach simple election leads to requesting (and paying for) 11 separate private letter rulings Copyright 2023, Kaplan, Inc.  

This week we look at: S corporation loses on research credit claim and gets hit with penalties - risks of a credit study Exempt organization status denied for organization formed to raise funds for one person’s medical bills Discussion of tax research hierarchy in this short week

This week we look at:  Supreme Court takes on §965 transition tax case for upcoming term:  what do we do to protect our clients? The IRS releases draft versions of key 2023 partnership income tax returns Firefighter’s sexual harassment complaint settlement was not excludable from income

This week we look at: IRS ends COVID-19 relief for high deductible health plans effective for plan years ending after 12/31/24 Taxpayer fails in attempt to get IRS permission to make a late §475(f) mark to market election Taxpayer who filed Tax Court petition 11 seconds too late due to technology challenges has petition dismissed Sherlock Holmes on tax research  

This week we look at OIRA is no longer going to review IRS regulations before issuance IRS updates list of automatic accounting method changes Proposed regulations issued on transfers of certain energy credits and DirectPay for certain credits What can go wrong with an employee retention credit refund claim?