Current Federal Tax Developments

This week we look at:

• IRS provides last minute relief for payment of second quarter corporate estimated tax payments related to corporate alternative minimum tax

• En-banc rehearing request denied in case of Farhy v. Commissioner by DC Circuit

• CPA pleads guilty to tax charges related to syndicated conservation easement program

• Taxpayer Advocate warns of relying on generative AI for answering tax questions for consumer tax software - and there are just as big of issues for tax professionals

An audio only version of this week’s broadcast can be downloaded or streamed below.

The citations and slides for this week’s broadcast can be downloaded as a PDF form the link below:

2024-06-17 Current Federal Tax Developments

This week we look at:

• US Supreme Court rules that a requirement to redeem the decedent’s shares cannot be considered to reduce the value of the entity, but life insurance proceeds received by the entity to fund the buyout will increase the value

• Taxpayer denied relief for late rollover when funds were accidentally transferred from employer plan to Roth IRA

• IRS rules certain payments related to East Palestine, Ohio derailment are §139 disaster payments

• What options exist for an employer with a pending ERC claim?

An audio only broadcast for this week’s update can be streamed or downloaded below:

A PDF with the slides and links to the documents cited can be downloaded below.

2024-06-09 Current Federal Tax Developments

This week we look at:

• IRS announces that Direct File will continue into 2025 and be expanded while maintaining other programs

• A taxpayer finds its not so simple as just file a Form 2553 if you want to have an LLC taxed as an S corporation, but did realize the error fast enough to get a PLR to restore S status

An audio only version of this week’s broadcast can be downloaded below

A copy of the slides and this week’s link to items mentioned can be downloaded below:

2024-06-03 Current Federal Tax Developments

This week we look at:

• Yet another PLR requested for missed QSST election after S shares moved to trust following death of a shareholder

• Tax preparer’s conviction for willfully filing false returns upheld on appeal despite his argument he had doing what he did for years

• Letters to taxpayer from IRS Appeals did not extend the time to file suit for a claim for refund

• A partnership had properly elected to use BBA audit provisions early, rendering IRS FPAA invalid

An audio only update for htis week’s session can be streamed or downloaded below:

A PDF with the slides and this week’s links can be downloaded below:

2024-05-27 Current Federal Tax Developments

This week we look at:

• DOJ issues proposed rule that would remove cannabis businesses from loss of most business deductions under IRC §280E

• Filing date relief issued for those impacted by Ohio tornadoes from March

• IRS National Fraud Counsel speaks on ERC exams in ABA Tax Section webinar

• Tax adviser files suit to attempt to force the IRS to start processing ERC claims

• Tax Court imposes penalty for raising frivolous claims against taxpayer who argued wages are not income (among other things)

An audio only version of this week’s broadcast can be streamed or downloaded below:

A PDF with a copy of the slides and links to the supporting documents can be downloaded below:

2024-05-20 Current Federal Tax Developments

This week we look at:

• IRS gives update on final results for ERC voluntary compliance program and discusses the future

• The taxpayer’s contract did not make payment contingent on the success of research

• DOJ announces CPA firm barred from promoting CRAT/single premium annuity shelter

• IRS provides information on CAF “under review status” and changes to requesting transcripts

An audio only version of this week’s update can be streamed or downloaded below.

A PDF containing copies of this week’s slides and links to documents cited this week can be downloaded below:

2024-04-13 Current Federal Tax Developments

This week we look at:

• IRS releases Fact Sheet on disaster provisions for retirement accounts added by SECURE 2.0 Act

• DC Circuit reverses Tax Court ruling that IRS does not have assessment authority for failure to file a report under IRC §6038(b) (Form 5471)

• Electric vehicle final regulations issued

• Department of Justice begins process to move marijuana from Schedule I to Schedule III which would cause §280E to no longer limit deductions for cannabis businesses

• Lack of any written records on time President/COO spent on activities or even estimate time spent on qualified research activities doomed attempt to claim a credit under IRC §41(a)

An audio only version of this week’s update can be streamed or downloaded below.

A PDF of this week’s slide and citation links can be downloaded below:

2024-05-06 Current Federal Tax Developments

This week we look at:

• Final regulations issued on credit transfer provisions of the Inflation Reduction Act

• Tax Court rules the law does mandate a minimum level of attention by a supervisor when approving a proposed penalty

• IRS announces the end of the Direct File pilot and will announce the next steps shortly

An audio only version of this week’s broadcast can be streamed or downloaded below.

A PDF with this week’s slides and links to citations can be downloaded below.

2024-04-29 Current Federal Tax Developments

This week we look at:

• IRS again waives penalties for certain RMD distributions for inherited IRAs and retirement plans, but indicates this should be the last time

• FinCEN adds more Q&As to BOI FAQ for the first time since January

An audio only version of this week’s update can be streamed or downloaded via the link below.

Slides and links to the source documents can be downloaded as a PDF via the link below.

2023-04-22 Current Federal Tax Developments

This week we look at

• Tax Court reverses position on validity of a regulation it had upheld four years ago

• US Supreme Court hears oral arguments in case involving estate tax value of a corporation that received life insurance to redeem the majority shareholder’s estate

• IRS Criminal Investigation Divisions announces update on COVID relief related investigations and convictions

An audio only version of this week’s session can be downloaded or streamed below

A PDF with the links and slides can be downloaded below:

2024-04-01 Current Federal Tax Developments