PLR202035010: Irrevocable Trust Qualifies as See Through Trust for IRAs

In PLR 202035010, the Service ruled that an irrevocable trust qualified as a see through trust regarding IRA distributions under Reg. §1.401(a)(9)-4, Q&A-5. In PLR 202035010, the decedent ("D") established two trusts, one revocable and one irrevocable trust. D named the revocable trust as the beneficiary of his two IRAs. The revocable trust named D's … Continue reading PLR202035010: Irrevocable Trust Qualifies as See Through Trust for IRAs

IRS IR-2020-187 (Aug. 25, 2020): Reminder to Taxpayers- deadline to return distributions to retirement accounts is Aug. 31

The Internal Revenue Service today reminds IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year that they have until August 31 to rollover or repay the distribution to avoid paying taxes. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives RMDs during 2020 for … Continue reading IRS IR-2020-187 (Aug. 25, 2020): Reminder to Taxpayers- deadline to return distributions to retirement accounts is Aug. 31

Belair Woods, LLC v Commissioner, TC Memo 2020-112 (July 22, 2020): Partnership Not Entitled to Charitable Contribution Deduction

The tax matters partner of a partnership was not entitled to a charitable contribution deduction because the conservation purpose underlying the easement was not protected in perpetuity as required by Code Sec. 170(h)(5)(A). See full opinion by clicking Belair Woods, LLC v Commissioner, TC Memo 2020-112 (July 22, 2020).

Jones Day: IRS to Begin Examination of High-Wealth Taxpayers (July 15, 2020)

Jones Day and several other sources have reported that the Internal Revenue Service ("IRS") announced that as soon as it reopens its collection and examination functions on July 15, it will immediately begin the examination of hundreds of high-income individuals and private foundations that are often established by high-income taxpayers through the Global High Wealth … Continue reading Jones Day: IRS to Begin Examination of High-Wealth Taxpayers (July 15, 2020)

IRS Tax Practice Unit: Foreign Tax Credit Limitation and Computation (July 2, 2020)

The IRS has updated its tax tax practice unit (a resource on substantive topics for IRS agents) on limitations and computation of the foreign tax credit. The overview is as follows: United States (U.S.) citizens and resident aliens are subject to tax on worldwide taxable income (WWTI), which includes both U.S. source taxable income (USTI) … Continue reading IRS Tax Practice Unit: Foreign Tax Credit Limitation and Computation (July 2, 2020)

IRS Practice Units Released On S Corp Distributions with Accumulated Earnings & Profits (July 14, 2020)

The IRS Large Business and International (LB&I) division has released a series of practice units for IRS agents, which are a resource on substantive topics for agents, on S corp distributions of accumulated earnings and profits. See the IRS Practice Units Below: Distributions with accumulated earnings & profitsGeneral overview of accumulated earnings & profits

IRS News: Proposed International Changes to Form 1065, U.S. Return of Partnership Income for Tax Year 2021

The Treasury Department and the IRS are proposing updates to the partnership form for tax year 2021 (filing season 2022). The updates will provide greater clarity for partners on how to compute their U.S. income tax liability with respect to international tax matters, including how to compute deductions and credits. The redesigned form and instructions … Continue reading IRS News: Proposed International Changes to Form 1065, U.S. Return of Partnership Income for Tax Year 2021

TD 9394: Correcting amendment to final regulations: Withholding related to foreign partners for effectively connected taxable income (June 11, 2020).

Treasury and the IRS have published a correcting amendment to final regulations related to foreign partners for effectively connected taxable income on June 11, 2020. The summary for the amendment is as follows: This document contains corrections to Treasury Decision 9394, which was published in the Federal Register on Tuesday, April 29, 2008. Treasury Decision 9394 contained … Continue reading TD 9394: Correcting amendment to final regulations: Withholding related to foreign partners for effectively connected taxable income (June 11, 2020).

Proposed Regs Issued Clarifying Definition of “Qualifying Relative” and personal exemption amount

The U.S. Treasury Department and IRS have released a notice of proposed rulemaking (REG-118997-19) that is intended to clarify the definition of a “qualifying relative” for purposes of various Code provisions for tax years 2018 through 2025. With the release, part of the regulations proposed in January 2017, that address the support test for a … Continue reading Proposed Regs Issued Clarifying Definition of “Qualifying Relative” and personal exemption amount

Rev.Proc. 2020-15: Updated list of countries, deposit interest paid to nonresident aliens

Rev. Proc. 2020-15, included in Internal Revenue Bulletin 2020-23 (June 1, 2020), updates prior IRS guidance regarding the list of countries with which the United States has in force an information exchange agreement for purposes of reporting payments of deposit interest of $10 or more made by U.S. financial institutions to nonresident alien individuals. See … Continue reading Rev.Proc. 2020-15: Updated list of countries, deposit interest paid to nonresident aliens

Theron E. Johnson v. Commissioner, T.C. Memo. 2020-79 (June 8, 2020): Conservation Easement Value Calculated

In Theron E. Johnson v. Commissioner, the Tax Court ruled on the value of a conservation easement. The taxpayer believed that granting a conservation easement over his ranch would allow him in effect to create a private wildlife reserve. The court heard evidence from the taxpayer’s expert and the IRS’s expert on the value and … Continue reading Theron E. Johnson v. Commissioner, T.C. Memo. 2020-79 (June 8, 2020): Conservation Easement Value Calculated

Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust

In Jason B. Sage v. Commissioner, the Tax Court held that a developer's transfer of property to a liquidating trust for the benefit of his creditors, which was a grantor trust, did not trigger a loss on the transfer of property to the trust. The opinion synopsis is as follows: P, a real estate developer, … Continue reading Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust

IRS Issues Proposed Regs on Itemized Deductions for Non-Grantor Trusts

The The Internal Revenue Service today issued proposed regulations that provide guidance for estates and trusts clarifying that certain deductions of estates and non-grantor trusts are not miscellaneous itemized deductions. The Tax Cuts and Jobs Act (TCJA) prohibits individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and … Continue reading IRS Issues Proposed Regs on Itemized Deductions for Non-Grantor Trusts

Rev. Rul. 2020-8: Period for Refund Claims from Foreign Tax Credit Released Due to NOL Carryback

The IRS has released Rev. Rul. 2020-8, which addresses the appropriate period for refund claims resulting from a foreign tax credit carryback that is released because of an NOL carry back from a subsequent year. To see Rev. Rul. 2020-8, click Rev. Rul. 2020-8: Period for Refund Claims from Foreign Tax Credit Released Due to … Continue reading Rev. Rul. 2020-8: Period for Refund Claims from Foreign Tax Credit Released Due to NOL Carryback

Treasury, IRS announce cross-border tax guidance related to travel disruptions arising from the COVID-19 emergency

The Treasury Department and the Internal Revenue Service have issued guidance that provides relief to individuals and businesses affected by travel disruptions arising from the COVID-19 emergency. The guidance includes the following: Revenue Procedure 2020-20 (PDF), which provides that, under certain circumstances, up to 60 consecutive calendar days of U.S. presence that are presumed to … Continue reading Treasury, IRS announce cross-border tax guidance related to travel disruptions arising from the COVID-19 emergency

AICPA Tax Insider (Apr. 16, 2020) Inherited IRA Strategies and More

IRS launches tool for nonfilers to receive stimulus payments The IRS has launched an online portal for taxpayers who are eligible to receive an economic impact payment but who are not normally required to file an income tax return because their income is too low. Inherited IRA strategies after the SECURE Act By Randy A. … Continue reading AICPA Tax Insider (Apr. 16, 2020) Inherited IRA Strategies and More

Edward A. Morse, Important Developments in Federal Income Taxation (Dec. 5, 2019)

Edward A. Morse has made available for download his paper, Important Developments in Federal Income Taxation. The Abstract is as follows: This outline covers significant developments in federal income taxation along with a few other interesting or noteworthy tax topics arising during the preceding calendar year. It offers a selective treatment focusing on items likely … Continue reading Edward A. Morse, Important Developments in Federal Income Taxation (Dec. 5, 2019)

BDO Seidman: IRS Provides Welcome Relief for Partnership Filings to Obtain CARES Act Benefits

BDO Seidman has published an article on its website about CARES Act relief for partnership filings.  Its article begins as follows: General Rules for Amending Partnership ReturnsPrior to 2018, partnerships were generally subject to unified partnership audit and litigation rules enacted by the Tax Equity and Fiscal Responsibility Act of 1982, commonly referred to as … Continue reading BDO Seidman: IRS Provides Welcome Relief for Partnership Filings to Obtain CARES Act Benefits

AICPA posts (a) 20 FAQs on tax filing relief, and (b) State Tax Filing Guidance for Coronavirus Pandemic

The AICPA has identified seven key areas in need of immediate tax relief and has posted 20 FAQs on the latest developments in taxpayer relief during the COVID-19 pandemic. The AICPA has been advocating for more comprehensive relief from Treasury and the IRS and also continues to urge the agencies to develop a contingency plan for the … Continue reading AICPA posts (a) 20 FAQs on tax filing relief, and (b) State Tax Filing Guidance for Coronavirus Pandemic