Leimberg Weekly Digest: July 5-11, 2020

LISI WEEKLY DIGEST [Subscription Required]

July 5 – 11, 2020

Steve Leimberg’s Income Tax Planning Newsletter
·  July 9 –James M. Kane on the Inter-Vivos QTIP Marital Trust, Now Even Better in Georgia
Steve Leimberg’s Estate Planning Newsletter
·  July 10 –Brad Dillon: Yes, Democrats Could Enact Retroactive Tax Legislation Next Year with a Simple Majority Vote, So Plan Now or Forever Lose Your Exemptions!
Steve Leimberg’s Employee Benefits and Retirement Planning Newsletter
·  July 8 –Denise Appleby: Five Coronavirus-Related Distribution Bombshell Revelations in Notice 2020-50
·  July 7 –Mike Jones on IRS Notice 2020-51: Guidance on CARES Act Provisions Relating to Retirement Benefits
Steve Leimberg’s Business Entities Newsletter
·  July 10 –Alan Gassman & Brandon Ketron: PPP Questions for Owner-Employees
·  July 6 –Jim Weller on Notice 2020-39: Who Says the Treasury and the IRS Cannot Be Taxpayer-Friendly
Bob LeClair’s Finance and Markets Newsletter
·  July 5 –Finance 7.4.2020 
Actual Text
·  July 10 –Donald J. Trump et al. v. Cyrus R. Vance, Jr. et al., No. 19-635 (9 July 2020) U.S. Supreme Allows State Subpoena of Trump’s Tax Return
·  July 10 –IR-2020-146 (9 July 2020) IRA Contributions Made by July 15 Count as 2019 Tax Deduction
·  July 10 –S. 4039 Telemedicine Everywhere Lifting Everyones Healthcare Experience And Long Term HSA (TELEHEALTH HSA) Act of 2020
·  July 10 –Englewood Place LLC et al. v. Commissioner, No. 1560-18, T.C. Memo. 2020-105 (9 July 2020) Limited Liability Company Not Entitled to Charitable Deduction for Conservation Easement
·  July 10 –Riverside Place LLC et al. v. Commissioner, No. 2154-18, T.C. Memo. 2020-103 (9 July 2020) LLC Denied $4 Million Charitable Deduction for Conservation Easement
·  July 9 –Notice 2020-50, 2020-28 IRB 1 (19 June 2020) Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act
·  July 9 –Notice 2020-54; 2020-31 IRB 1 (8 July 2020) IRS Guidance on Reporting Qualified Sick Leave Wages and Qualified Family Leave Wages Paid Pursuant to the Families First Coronavirus Response Act
·  July 9 –Rev. Proc. 2020-37, 2020-31 IRB 1 (8 July 2020) IRS Automobile Depreciation Limits
·  July 9 –Tamecca Seril v. Commissioner, No. 4491-19, T.C. Memo. 2020-101 (8 July 2020) Retirement Distributions Are Taxable; 10 Percent Tax Applies
·  July 9 –H.R. ____ Made in America: Preparation for a Pandemic Act of 2020
·  July 8 –Michael K. Simpson et ux. v. Commissioner, No. 427-17, T.C. Memo. 2020-100 (7 July 2020) Tax Court Denies Most Deductions for Partnership Business Expenses
·  July 8 –INFO 2020-0005 (19 May 2020) IRS Can’t Change Date for Filing FSA Claim for Dependent Care
·  July 8 –INFO 2020-0007 IRS Guidance on Determining Basis of Gift of Fee Simple Allotment
·  July 8 –FAQs on CARES Act Coronavirus Relief Fund
·  July 7 –ILM 202027003 (4 June 2020) IRS Determines Charitable Contribution Deduction Not Disallowed for UBTI Calculation
·  July 7 –PLR 202027001 (26 February 2020) S Corp Termination Was Inadvertent
·  July 7 –H.R. 7477 Workforce Promotion and Access (WPA) Act
LISI Podcasts
·  July 9 –60-Second Planner: IR 2020-146 — IRA Contributions Still Deductible on 2019 Returns
·  July 7 –60-Second Planner: Sage v. Commissioner — No Loss on Transfer of Properties to Trusts
Upcoming Webinars
·  July 15 –PROPOSED REGULATIONS REGARDING TRUST AND ESTATE DEDUCTIONS – A Special Re-Broadcast – Bob Keebler and Jere Doyle
·  July 15 –Fear Factor: Protecting Assets by Getting into the Creditor’s Head and Controlling his Mind – A Special Re-Broadcast – Steve Oshins
·  July 16 –Sales to Grantor Trusts – In a Low Interest Rate Economy – 2020 Update – A Special Re-Broadcast – Bob Keebler
·  July 16 –Health Care Powers of Attorney, Advance Directives, Living Wills, POLST and HIPAA Authorization Analysis. It’s That Time…How’s YOUR Bedside Manner? – Paul Hood
·  July 17 –Nelson v. Commissioner – The Next Chapter in Protective/Defined Value Gift and Sale Clauses – A devastating loss for the Taxpayer – A Special Re-Broadcast – Paul Hood and Bob Keebler
·  July 17 –Tactical and Strategic Roth Conversions in 2020 – A Special Re-Broadcast – Bob Keebler
Webinars Last Week (Recordings Available)
·  July 9 –The Nitty-Gritty Details of Income Tax Basis – A Special Re-Broadcast – Bob Keebler
·  July 9 –Bob Keebler & Keith Schiller: Avoiding and Unsnaring Estate and Gift Tax Audit Traps – Achieving Best Results from Estate and Gift Tax Audits – A Special Re-Broadcast – Bob Keebler and Keith Schiller
·  July 10 –The Mathematics of Portability: Taking Advantage of the Increased Exemptions to Ensure Optimum Planning for High Net Worth Clients. – Bob Keebler
·  July 10 –Fear Factor: Protecting Assets by Getting into the Creditor’s Head and Controlling his Mind – LIVE – Steve Oshins
LISI Links
·  July 11 –Reporting Excess Deductions on Termination of an Estate or Trust for Tax Years 2018 and 2019
This page added to the IRS website on July 10, 2020 explains how to claim excess deductions on termination of an estate or trust on Forms 1040, 1040-SR and Forms 1040-NR for tax years 2018 and 2019. Under proposed regulations published in the Federal Register on May 11, 2020, an excess deduction on termination of an estate or trust allowed in arriving at adjusted gross income (Code section 67(e) expenses) is reported as an adjustment to income on Forms 1040, 1040-SR, and 1040-NR. Taxpayers may rely on the proposed regulations for tax years beginning after 2017.
·  July 9 –Practice Units — IRS
This page from the IRS website highlights Practice Units, which are part of the IRS’s Large Business and International knowledge management efforts. According to the site, “Practice Units provide IRS staff with explanations of general tax concepts as well as information about a specific type of transaction.”
·  July 7 –SBA Paycheck Protection Program Loan Level Data
From the Small Business Administration, Paycheck Protection Program data that identifies major recipients as well as the extent of jobs supported by the $659 billion program. Data for loans of $150,000 and above, including the name of the borrower, is in a single CSV file. Loans of less than $150,000 are summarized in a separate file for each state, not listing the name of the borrower.
Blog Watch
·  July 10 –Perspectives On The Supreme Court’s Trump Tax Return Decision
Links to 20 articles analyzing the Court’s decisions.
·  July 9 –Is Personal Information of Retirement Plan Participants an ERISA Plan Asset?
“The essence of the allegations is that employers breach their fiduciary duties of loyalty and prudence when they permit plan service providers to profit from the use of plan assets – sensitive personal information of plan participants – for non-plan
·  July 9 –Access My Social Security From Your Home
“With so many services available online through my Social Security, signing up for a secure account will help you conduct Social Security business from home.”
·  July 8 –Montana Supreme Court: Alleged Fraud Did Not Toll Probate Time Limitations To Challenge Will
“[A Montana statute] provides remedies for fraud perpetrated in connection with probate proceedings. But “[t]his section has no bearing on remedies relating to fraud practiced on a decedent during the decedent’s lifetime that affects the succession 
·  July 8 –District of Columbia Proposes Reduction in Estate Tax Exemption from $5.6 Million to $4.0 Million
The provision is part of a proposed increase in taxes to cover a COVID-19 triggered revenue shortfall.
·  July 7 –Some Retirees Can Become Eligible For $1,200 Stimulus Checks By Using 2020 RMD Holiday To Reduce Income
“Technically, the income thresholds apply to your 2020 income….The IRS used 2018 and 2019 as a proxy, but if your income has changed dramatically, you will be able to true up when you file your 2020 taxes.”
·  July 6 –INSIGHT: Estate and Life Insurance Considerations During the Covid-19 Pandemic
“Henry Montag of The TOLI Center East and Andrea Schanker of Schanker & Hochberg walk through key considerations for life insurance and estate planning during the this unusual time. All of these ‘what if’ questions are at the forefront of our clients
·  July 5 –FBAR Non-Willful Penalty Calculated Based on Number of Returns, Not Number of Accounts
U.S. v. Bittner, 126 AFTR 2d 2020-XXXX (DC TAX 6/29/20)
·  July 5 –Preparers May Fight IRS On PPP Deduction Denial
“If claiming the deduction even though the loan is forgiven is too wild and crazy for you, but you don’t want to lose out if the IRS loses in court, you can file in obedience to the notice and then file a refund claim.”
LISI Journals
·  July 11 –Property or Financial Powers of Attorney L. Paul Hood Jr. – Trusts & Estates
·  July 11 –Protecting Elders and Their Estates In the Age of the Coronavirus Anne Gifford Ewing – Trusts & Estates
·  July 11 –Electronic Notaries, Signatures And Wills, Oh My! Letha Sgritta McDowell and Rachel H. Snead – Trusts & Estates
·  July 11 –Benefits of Designating a Trusted Contact Person Carole M. Bass, Bernard A. Krooks, and Allison Lauren Lee – Trusts & Estates
·  July 11 –Misconceptions Regarding Private Non-Operating Foundations Kerry O’Rourke Perri, Jacqueline S. Rogers, and Melissa Bryson – Trusts & Estates

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..

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