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

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)

Deloitte – IRS Insights – March 2020: Tax Court Denial of Conservation easement; Enforcement Developments

Tax Court Tentatively Disallows Conservation Easement Deduction Due to Omitted Required Basis Information The Tax Court disallowed a conservation easement charitable contribution deduction because the taxpayer’s return omitted the cost or adjusted basis of the donated property from the appraisal summary and rejected the taxpayer’s argument that it strictly or substantially complied with the regulatory … Continue reading Deloitte – IRS Insights – March 2020: Tax Court Denial of Conservation easement; Enforcement Developments

IRS Releases two updated IRA publications and other online resources help taxpayers planning for retirement

The Internal Revenue Service has updated two comprehensive publications designed to help anyone making IRA contributions or receiving IRA distributions for tax year 2019 or considering making retirement donations before April 15, 2020. The 2019 editions of Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) and Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), are both now … Continue reading IRS Releases two updated IRA publications and other online resources help taxpayers planning for retirement

Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)

Bridget J. Crawford, Pace University School of Law, and Jonathan G. Blattmachr, have made available for download their forthcoming Tax Lawyer article, Basis and Bargain Sales: Income Tax and Other Concerns. The Abstract is as follows: This article explores the income tax consequences of the sale during lifetime and at death of property for less … Continue reading Crawford & Blattamachr: Basis and Bargain Sales: Income Tax and Other Concerns, The Tax Lawyer (2020)

IRS updates guidance on business expense deductions for meals and entertainment

The Internal Revenue Service has issued proposed regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. It also limited the deduction for expenses related to food and … Continue reading IRS updates guidance on business expense deductions for meals and entertainment

Entin: Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020)

Seth J. Entin, of Holland & Knight, has published an article, Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020). The abstract is as follows: The U.S. Tax Cuts and Jobs Act (the TCJA), which was enacted at the end of 2017, dramatically changed the U.S. cross-border … Continue reading Entin: Tax Reform Presents Opportunities for Foreign Investors in U.S. Businesses Holland & Knight Alert (Feb. 20, 2020)

TaxProf Blog – Bryan Camp: Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020)

Bryan Camp has published an article on the Tax Prof Blog, entitled Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020).  The article begins as follows: Tax statutes and tax regulations mostly use words to talk about numbers.  One of the basic lessons I must teach students is how … Continue reading TaxProf Blog – Bryan Camp: Lesson From The Tax Court: Drafting Error Costs Client $16 Million Deduction (Feb. 10, 2020)

Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income

The Tax Court held that taxpayer’s IRA distributions were taxable income for two tax years at issue.  Taxpayer inherited the IRA from his mother and received two separate distributions during the two tax years at issue, which he did not report because he did not believe he owed tax on the distribution.  At trial, taxpayer … Continue reading Essner v. Commissioner, T.C. Memo 2020-23: Distributions From Inherited IRA Considered Taxable Income

Rev. Rul. 2020-05: Adjustments to basis for life insurance contracts

The IRS has released an advance version of Rev. Rul. 2020-05 that updates guidance previously provided in Rev. Rul. 2009-13 and Rev. Rul. 2009-14 for adjustments to basis for life insurance contracts to account for the changes to section 1016(a), as amended by the Tax Cuts and Jobs Act. Click here to download Rev. Rule … Continue reading Rev. Rul. 2020-05: Adjustments to basis for life insurance contracts

Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020): LLC Not Entitled to Charitable Conservation Deduction for Conservation Easement

In Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020) the Tax Court held that an LLC was not entitled to a charitable contribution deduction for a conservation easement. The taxpayer executed a deed declaring a conservation easement in favor of a tax-exempt charitable organization. The deed provided that, if the easement was … Continue reading Railroad Holdings, LLC v. Commissioner, T.C. Memo 2020-22 (Feb. 5, 2020): LLC Not Entitled to Charitable Conservation Deduction for Conservation Easement

Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020): 10% Penalty Applies – Disability Exception for Certain IRA Distributions Don’t Apply to Owner’s Spouse is Disabled

The Tax Court, in a summary opinion in Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020), held that the disability exception to the 10% additional tax on certain IRA distributions did not apply when the IRA owner's spouse was disabled, not the owner himself. To see full opinion, click Merrell v. Commissioner, T.C. … Continue reading Merrell v. Commissioner, T.C. Summary Opinion 2020-5 (Jan. 16, 2020): 10% Penalty Applies – Disability Exception for Certain IRA Distributions Don’t Apply to Owner’s Spouse is Disabled

Carter v. Commissioner, T.C. Memo 2020-21: Married Individuals Denied Charitable Contribution Deductions; Supervisory Approval Not Met

In Carter v. Commissioner, the Tax Court upheld the disallowance of charitable contribution deductions for the conveyance of an easement to a qualified organization. The opinion synopsis is as follows: DH, a partnership of which Ps were partners, conveyed to NALT, a "qualified organization" within the meaning of I.R.C. sec. 170(h)(3), an easement that restricts … Continue reading Carter v. Commissioner, T.C. Memo 2020-21: Married Individuals Denied Charitable Contribution Deductions; Supervisory Approval Not Met

IRS Tax Practice Unit on Tax Home for Purposes of IRC Section 911

The IRS has published a tax practice unit on the determination of a tax home for purposes of Code Section 911, dealing with US citizens or residents living abroad. The summary is as follows: This Unit supersedes the 12/15/14 Unit with the same title.  This Unit discusses the factors to be considered in determining an … Continue reading IRS Tax Practice Unit on Tax Home for Purposes of IRC Section 911

IRS Tax Practice Unit on Source of Income for Nonresident Alien Individuals

The IRS has published a tax practice unit on source of income for nonresident aliens. The summary is as follows: NOTE: This Practice Unit was updated to incorporate changes due to the Tax Cuts and Jobs Act for tax years beginning after 12/31/2017 and supersedes the 05/12/16 Unit with the same title. Source of income … Continue reading IRS Tax Practice Unit on Source of Income for Nonresident Alien Individuals

Information Letter 2019-0029: Testamentary Transfer of Series EE Bonds to Trust is Taxable Event

In Information Letter 2019-0029 the IRS ruled that a testamentary transfer of Series EE Bonds to a trust is taxable event. The contents of Information Letter 2019-0029 is as follows: This letter responds to your letter dated July 30, 2019, in which you requested information on the federal income tax consequences of the testamentary transfer … Continue reading Information Letter 2019-0029: Testamentary Transfer of Series EE Bonds to Trust is Taxable Event