What to do for a missed Sec. 83(b) electionBy T.J. Wilkinson J.D., LL.M.All is not lost if a taxpayer hasn't made the Sec. 83(b) election, which often comes up in relation to stock or other equity received as compensation and subject to vesting. ARPA expands tax credits for familiesBy Nell Adkins, CPA, Ph.D., and Charlene … Continue reading AICPA Tax Insider (July 22, 2021): What to do for a missed Sec. 83(b) election; ARPA expands tax credits for families; and More!
Margaret Ryznar has published an article on the TaxNotes, titled “A Tax Credit for Wills,” The article begins as follows: The COVID-19 pandemic revealed certain problems in American society, including a systemic lack of estate planning, which Americans have a long history of neglecting. The reasons may vary. For example, many people — not expecting … Continue reading TaxNotes – Margaret Ryznar: A Tax Credit for Wills (July 9, 2021)
Casey Robinson, of Waldron Private Wealth, has made available for download his article, “Are 1031 Exchanges Right for Me?,” published in The Kiplinger Washington Editors. The article begins as follows: President Biden’s proposed American Families Plan is shining light on a popular tax deferral strategy used by property owners and real estate investors, mainly because … Continue reading Casey Robinson (Waldron Private Wealth): Are 1031 Exchanges Right for Me? (July 18, 2021)
Dave Strausfeld, J.D., has published an article on the Journal of Accountancy, titled “IRS launches 'Tax Pro Account' feature.” The article begins as follows: The IRS unveiled a new online feature on Monday known as the “Tax Pro Account,” the purpose of which, for now, is to automate the submission of powers of attorney (POAs) … Continue reading Journal of Accountancy: IRS launches ‘Tax Pro Account’ feature (July 20, 2021)
Laura Davison has made available for download her article, "IRS's Tax Audits Slid After End Of Program To Focus On Wealthy," published in Financial Advisor The article begins as follows: The Internal Revenue Service has completed fewer audits of wealthy taxpayers since ending a program to focus on top earners, leading to as much as … Continue reading Laura Davison: IRS’s Tax Audits Slid After End Of Program To Focus On Wealthy (July 12, 2021)
Mariano Sori-Marin, Katie Girmscheid, and Tim Schram, tax experts for the State Income and Franchise Tax National Leader, State and Local Tax, and Credits & Incentives National Leader, respectively, have made available for download their article “Illinois: FY 2022 Budget Legislation Contains Numerous Tax Changes”, published on BDO USA. The abstract is as follows: As … Continue reading Mariano Sori-Marin, Katie Girmscheid, and Tim Schram: Illinois: FY 2022 Budget Legislation Contains Numerous Tax Changes (July 2021)
Forbes has published an article, “Buy Passport With Bitcoin, Escape Taxes?”, which discusses legal logistics of buying a passport from a tax-haven nation with bitcoin in order to try and avoid paying higher taxes. The article begins as follows: Have you ever considered living in a Caribbean tax haven, becoming a citizen, maybe even ditching … Continue reading Forbes: Buy Passport With Bitcoin, Escape Taxes? (July 14, 2021)
The Internal Revenue Service issued August 2021 AFRs in Rev. Rul. 2021-14. To see the August AFRs, please click here. See Rev. Rul. 2021-14.
Joshua D. Blank and Ari D. Glogower, of University of California, Irvine School of Law and Ohio State University (OSU) - Michael E. Moritz College of Law, have made available for download their article, "Progressive Tax Procedure," published in 96 New York University Law Review 668 (2021). The abstract is as followed: Abusive tax avoidance … Continue reading Joshua D. Blank and Ari D. Glogower: Progressive Tax Procedure (June 17, 2020)
The IRS has updated its practice unit on Computing Qualified Research Expenses. The overview is as follows: Examining the credit for increasing research activities under IRC 41 (research credit) involves significant resources of both taxpayers and the Internal Revenue Service. Taxpayers following U.S. Generally Accepted Accounting Principles (GAAP) for book, use Accounting Standards Codification (ASC) … Continue reading IRS Updates Practice Unit on Computing Qualified Research Expenses (April 22, 2021)
Addressing the rock bottom IRS service levelsBy Edward S. Karl, CPA, CGMAThe AICPA surveyed members to statistically validate what we hear daily about IRS service levels, then came up with some tips to help the agency improve. Proposed bill to regulate tax preparers has AICPA supportA bill recently proposed in Congress would authorize Treasury to … Continue reading AICPA Tax Insider (July 15, 2021): Addressing the rock bottom IRS service levels; Proposed bill to regulate tax preparers has AICPA support; and More!
Jeff Bilsky, Neal Weber, and Michael Masciangelo, tax experts for the National Partnership Taxation Technical Practice Leader, Core Tax Services, and International Tax Services, respectively, have made available for download their article “IRS Issues Draft Instructions, Provides Penalty Relief for New Schedules K-2 and K-3”, published on BDO USA. The abstract is as follows: On … Continue reading Jeff Bilsky, Neal Weber, and Michael Masciangelo: IRS Issues Draft Instructions, Provides Penalty Relief for New Schedules K-2 and K-3 (July 2021)
The IRS website provides millions of visitors with the answers they need to fit their busy summer schedules. On IRS.gov, waiting for service is not a problem and no appointment is needed to use the online tools. Many taxpayers who requested an extension to October 15 or missed the May 17 deadline can still prepare and … Continue reading The IRS Website Offers The 24/7 summertime spot for tax help (July 9, 2021)
The IRS released publication 5392, The Art Advisory Panel of the Commissioner of Internal Revenue, summarizing the closed meeting activities of the Art Advisory Panel during fiscal year 2020. The Panel provides valuation recommendations on artwork involved in estate, gift, and income tax returns. Due to the Covid-19 pandemic, the Fine Arts Panel met only … Continue reading IRS Released The Art Advisory Panel of the Commissioner of Internal Revenue for FY 2020
The IRS has released Rev. Rul. 2021-12, which provides various prescribed rates for federal income tax purposes for July 2021 including short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code and more. To see Rev. Rul. 2021-12: Determination of Issue Price in … Continue reading Rev. Rul. 2021-12: July 2021 AFRs
The U.S. Treasury Department and IRS have released for publication in the Federal Register final regulations (T.D. 9950) relating to a mandatory 60-day postponement of certain time-sensitive tax-related deadlines by reason of a federally declared disaster. The final regulations provide guidance for individuals who reside in, were injured or killed in a disaster area; businesses … Continue reading Treasury Department and IRS: Mandatory 60-Day Postponement of Certain Tax-Related Deadlines by Reason of a Federally Declared Disaster (June 11, 2021)
In IRS Memorandum 202118008, the Office of Chief Counsel has ruled that a surviving spouse was treated as making a gift of all of the interests in a qualified terminable interest property (QTIP) trust other than the qualifying income interest when the trust was commuted. The conclusion is as follows: The commutation of the trust is … Continue reading IRS Memorandum 202118008: Commutation of QTIP Trust Resulted in Gifts (February 1, 2021)
Forbes has published an article, "Sell Stocks Or Cash In An IRA?", which discusses which assets to liquidate when dealing with a tax-deferred IRA and a taxable brokerage account. The article begins as follows: You’re retired, and living off two piles of assets—a taxable brokerage account and a tax-deferred IRA. Which should be cashed in … Continue reading Forbes: Sell Stocks Or Cash In An IRA? (July 4, 2021)
Nina Olson, Executive Director of the Center for Taxpayer Rights and former National Taxpayer Advocate of the United States, has made available for download her article “Thinking Out Loud About the Advanced Child Tax Credit – Part I”, published on the Procedurally Taxing blog. The abstract is as follows: With the recent launch of a campaign to … Continue reading Nina Olson: Thinking Out Loud About the Advanced Child Tax Credit – Part I (June 29, 2021)
Charles (Chuck) Rubin, in his Rubin on Tax blog, discusses the Maltese pension plan which is a planning device for U.S. taxpayers to use the U.S. - Malta tax treaty to obtain tax deferral and tax avoidance benefits similar to a Roth IRA, but without many of the limitations of a Roth IRA. The article begins as … Continue reading Rubin on Tax: Maltese Pension Plan in the Sights of the IRS (July 4, 2021)