Tax Developments (April 25, 2023)

Table of Contents

  • Primary Law: New Developments
  • IRS News
  • Tax Development Commentary

Primary Law: New Developments

Tax relief for Indiana victims of storm, straight-line winds, and tornadoes: IRA and HSA deadlines postponed, Michael Schiller,

The IRS grants tax relief to Indiana storm victims by postponing IRA, HSA, and other tax advantaged account deadlines until July 31, 2023.

KMPG report: Effect of IRS funding on information reporting, Martin L. Mueller and Cyrus Daftary,

The IRS plans to use around $80 billion from the “Inflation Reduction Act of 2022” for system upgrades and enhancing taxpayer guidance and resources, but taxpayers remain concerned about potential changes to reporting requirements and increased enforcement.

California Court of Appeal Landmark Opinion Expands Intangible Asset Exemption from Property Tax Assessment, Colin W. Fraser, Ruben Sislyan, and James T. Smith,

The California Court of Appeal rules that transient occupancy tax reimbursements and key money payments are tax-exempt intangible assets, impacting property tax assessments and invalidating the “Rushmore Method.”

IRS News

IRS seeks membership nominations for the 2024 Internal Revenue Service Advisory Council,

The IRS is accepting applications for the 2024 Internal Revenue Service Advisory Council (IRSAC) until May 31, 2023, inviting diverse candidates to provide insights and recommendations on tax administration issues.

Reminder: Proposed regulations related to the new clean vehicle critical mineral and battery components go into effect April 18,

The IRS published proposed regulations for critical mineral and battery component requirements impacting new clean vehicle credits, applicable to vehicles placed in service on or after April 18, 2023.

Tax Development Commentary

Crypto Taxes: Unstaked ETH Continues To Complicate Crypto Tax Planning, Sean Stein Smith,

The release of over $30 billion in staked Ethereum (ETH) following the Shapella upgrade raises questions on crypto taxes, with investors facing potential tax liabilities on staking rewards and increased ETH utilization.

Avoiding Taxes on the Sale or Gifting of Art, Matthew Erskine,

The Center for Art Law offers strategies, such as Charitable Remainder Trusts and Charitable Lead Trusts, to help artists, collectors, and inheritors reduce income or estate tax on the sale or inheritance of artwork.

Alcohol and Taxes in New York, Rafael Pignataro,

New York State liquor license holders must pay taxes and submit necessary forms on time, or risk revocation, cancellation, or suspension of their license, as outlined in the state’s three-tiered liquor licensing system regulations

Equity Forfeiture in Tax Foreclosures – On the Way Out?, Adam Cohen and Elliot B. Pollack,

In 14 U.S. states, taxing authorities can keep the full auction proceeds from foreclosed real estate even beyond the owner’s debt obligation under “surplus retention statutes,” but the Supreme Court may soon revisit its 1956 ruling upholding this system.

Posted by, Benjamin Cunningham, Associate Editor, Wealth Strategies Journal

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