IRS Memorandum 20202501F (June 19, 2020): NOL Carryforward Audit in taxable year for issue previously audited in taxable year not allowed

In IRS Memorandum 20202501F (June 19, 2020), IRS Chief Counsel concluded that the IRS can’t audit two net operating loss (NOL) carryforwards from previously audited tax years where the IRS had previously disallowed the NOLs, but, after the taxpayer protested, the IRS Office of Appeals (Appeals) allowed the NOLs. To see IRS Memorandum 20202501F (June … Continue reading IRS Memorandum 20202501F (June 19, 2020): NOL Carryforward Audit in taxable year for issue previously audited in taxable year not allowed

AICPA Tax Insider (July 2, 2020): Like Kind Exchange Quiz; Rollover Relief for RMDs; July 15, 2020 is final tax deadline and more

Quiz: Like-kind exchanges By James A. Beavers, CPA, CGMA, J.D., LL.M. Find out how much you know about this useful tax deferral tool. Rollover relief for required minimum distributions The IRS provides relief for taxpayers who had already taken required minimum distributions (RMDs) before the CARES Act suspended the RMD requirement for 2020 in response … Continue reading AICPA Tax Insider (July 2, 2020): Like Kind Exchange Quiz; Rollover Relief for RMDs; July 15, 2020 is final tax deadline and more

AICPA Tax Insider (June 11, 2020): student loan tax incentives; remote signatures; Notice 2020-23; and more

New tax incentive for employers to help with student loans By Dave Strausfeld, J.D. Employers can make tax-free contributions in 2020 to help employees with their student loan payments, under a provision in the CARES Act. Here's how. IRS permits remote signatures for plan loan consents In another response to the COVID-19 pandemic, the IRS … Continue reading AICPA Tax Insider (June 11, 2020): student loan tax incentives; remote signatures; Notice 2020-23; and more

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).

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

IRS Urges Taxpayers to Remain Vigilant Against Coronavirus-Related Tax Fraud (IR-2020-115),(Jun. 9, 2020)

The IRS reminded taxpayers to guard against tax fraud and other related financial scams related to COVID-19. In the last few months, the IRS Criminal Investigation division (CI) has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement … Continue reading IRS Urges Taxpayers to Remain Vigilant Against Coronavirus-Related Tax Fraud (IR-2020-115),(Jun. 9, 2020)

AICPA Tax Insider (June 4, 2020): Tax Rules for Real Estate Professionals; Exempt Org Reporting Regs Finalized; Electronic Amended Returns and More

E-filing of Form 1040-X coming this summer The IRS announced that taxpayers will be able to electronically file Forms 1040-X, Amended U.S. Individual Income Tax Return, later this summer. Tax rules for real estate professionals By Barbara Bryniarski Determining whether a taxpayer involved in real estate activities qualifies as a real estate professional establishes whether the … Continue reading AICPA Tax Insider (June 4, 2020): Tax Rules for Real Estate Professionals; Exempt Org Reporting Regs Finalized; Electronic Amended Returns and More

Politico: Millions of paper tax returns go unopened at short-staffed IRS (May 29, 2020)

Politico reports that millions of paper tax returns remain unopened at IRS offices due to staffers remote working due to the COVID pandemic. The Politico article begins as follows: The IRS estimates that nearly 5 million unopened paper tax returns had piled up at the agency by mid-May amid the closure of its offices nationwide … Continue reading Politico: Millions of paper tax returns go unopened at short-staffed IRS (May 29, 2020)

Bloomberg News: IRS Fails to Pursue Thousands of Rich Tax Cheats, Watchdog Says (June 1, 2020)

Bloomberg News reports that the Treasury Department has released a report stating that the IRS fails to pursue thousands of "Rich Tax Cheats." The article begins as follows: The Internal Revenue Service is letting hundreds of thousands of high-income individuals duck their tax obligations, according to a government watchdog report.The Treasury Inspector General for Tax … Continue reading Bloomberg News: IRS Fails to Pursue Thousands of Rich Tax Cheats, Watchdog Says (June 1, 2020)

TAXATION OF TANGIBLE PERSONAL PROPERTY

By Laura Angel-Lalanne & G. Warren Whitaker Clients frequently make their choices regarding the disposition of their tangible personal property based on emotional considerations.  Nevertheless, they must be aware of the tax costs and benefits associated with the various methods of disposition they may be considering, so they can make fully informed decisions.  This article … Continue reading TAXATION OF TANGIBLE PERSONAL PROPERTY

Lisa Starczewski, Bloomberg Tax (May 26, 2020): An Unexpected Gift in Opportunity Zone Correcting Amendments—Did This Really Just Happen?

Lisa Starczewski has made available her article, published in Bloomberg Tax, An Unexpected Gift in Opportunity Zone Correcting Amendments—Did This Really Just Happen?, published on May 26, 2020. The summary is as follows: Created by the Tax Cuts and Jobs Act, the Opportunity Zones program offers significant tax incentives to encourage investment in certain designated … Continue reading Lisa Starczewski, Bloomberg Tax (May 26, 2020): An Unexpected Gift in Opportunity Zone Correcting Amendments—Did This Really Just Happen?

AICPA Tax Insider (May 28, 2020): Misconceptions about defined benefit plans; deduction for worthless partnership interest; and more

3 common misconceptions about defined benefit plans By David Podell Defined benefit plans permit larger employer contributions than most qualified retirement plans and are worth a look despite these misconceptions. HSA contribution limits increase for 2021 The IRS issued its annual inflation-adjusted contribution limits for contributions to health savings accounts permitted to participants in high-deductible … Continue reading AICPA Tax Insider (May 28, 2020): Misconceptions about defined benefit plans; deduction for worthless partnership interest; and more

The Tax Lawyer Spring 2020 Issue Published

The Tax Lawyer has published its Spring 2020 Issue. The articles include the following: John A. Townsend, Burden of Proof in Tax Cases: Valuation and Ranges—An Update, 73 Tax Law. 389 (2020)Keith Fogg, Access to Judicial Review in Nondeficiency Tax Cases, 73 Tax Law. 435 (2020)Bruce A. McGovern, Cassady V. Brewer & James M. Delaney, … Continue reading The Tax Lawyer Spring 2020 Issue Published

AICPA Tax Insider (May 14, 2020): Covid Tax Changes and More

COVID-19 pandemic prompts many tax changes By Alistair M. Nevius, J.D., and Sally P. Schreiber, J.D. Taxpayers have a variety of tax relief measures to help them through the economic disruption caused by the coronavirus pandemic. From tax credits to filing postponements, here is a breakdown of the initial changes benefiting individuals and businesses.  IRS … Continue reading AICPA Tax Insider (May 14, 2020): Covid Tax Changes and More

Jack Townsend – Federal Tax Crimes Blog: U.S. Taxpayer Renouncing U.S. Citizenship Indicted And Extradition Started (5/11/20)

Jack Townsend, on his Federal Tax Crimes Blog writes about a US Taxpayer in the process of expatriating and renouncing his US citizenship who was indicted by DOJ.  His post begins as follows: A reader just alerted me that I had overlooked a significant item of interest to readers of this blog. On March 5, … Continue reading Jack Townsend – Federal Tax Crimes Blog: U.S. Taxpayer Renouncing U.S. Citizenship Indicted And Extradition Started (5/11/20)

Bloomberg: Wall Street Titans – Tax Increases Definitely Coming After Election, Mostly at Upper End – Only Question is How Much of an Increase

Bloomberg News is reporting that a consensus is forming among Wall Street Titans that tax increases are coming after the election. Most of the increases will be at the upper end of the income/wealth spectrum. The only question appears to be how much taxes will go up. Among other things, the article states the following: … Continue reading Bloomberg: Wall Street Titans – Tax Increases Definitely Coming After Election, Mostly at Upper End – Only Question is How Much of an Increase

AICPA Tax Insider (May 7, 2020): PPP Loans + Tax Deductions; Current S Corp Developments; Online PLR Requests; No Penalty for Form 3520 Nonfiling + More

District court lowers penalties for Form 3520 nonfiling to zero By Steven L. Walker, J.D., LL.M. Taxpayers facing penalties for failure to file the information form for reporting transactions with foreign trusts should check IRS computations. PLR and other requests for IRS guidance can now be sent electronically In another response to the coronavirus pandemic, … Continue reading AICPA Tax Insider (May 7, 2020): PPP Loans + Tax Deductions; Current S Corp Developments; Online PLR Requests; No Penalty for Form 3520 Nonfiling + More

David S. Miller, Muhyung (Aaron) Lee, Kathleen Semanski, & Sean Webb (Proskauer): Summary of the Tax Provisions of the CARES Act

David S. Miller, Muhyung (Aaron) Lee, Kathleen Semanski, & Sean Webb (Proskauer) have made available for download their article, "Summary of the Tax Provisions of the CARES Act." The Abstract is as follows: This paper summarizes the tax provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The topics covered in the … Continue reading David S. Miller, Muhyung (Aaron) Lee, Kathleen Semanski, & Sean Webb (Proskauer): Summary of the Tax Provisions of the CARES Act

Procedurally Taxing: In Wells Fargo 8th Circuit Holds Reasonable Basis Defense to Negligence Penalty Requires Taxpayers Prove Actual Reliance on Authorities (Apr. 27, 2020)

Professor Leslie Book, on his Procedurally Taxing blog, reports on Wells Fargo v. US, which holds that the reasonable basis defense to the negligence penalty requires a taxpayer to prove that they actually relied on relevant legal authority rather than just show that objectively the authority supported the taxpayer’s position. Wells Fargo is the first … Continue reading Procedurally Taxing: In Wells Fargo 8th Circuit Holds Reasonable Basis Defense to Negligence Penalty Requires Taxpayers Prove Actual Reliance on Authorities (Apr. 27, 2020)

AICPA Tax Insider (Apr. 23, 2020): IRS Stimulus Website, PTIN Fees, Taking Retroactive 100% Bonus Depreciation on QIP and More

IRS launches website for tracking stimulus payments The IRS announced the launch of its "Get My Payment" website, which is designed to permit people who filed tax returns to enter their direct deposit information and check the status of their $1,200 stimulus payment. PTIN fee will be lower when it is reinstated The IRS has … Continue reading AICPA Tax Insider (Apr. 23, 2020): IRS Stimulus Website, PTIN Fees, Taking Retroactive 100% Bonus Depreciation on QIP and More