Lynn Nichols Federal Tax Update Podcast

July, 11 2019, Episode 42

Listen as Lynn Nichols provides commentary on 9 Items pertaining to current developments in U.S. tax law.

1. Trustee-to-Trustee Transfer IRAs Are Inherited IRAs

The IRS ruled that four beneficiary IRAs created by trustee-to-trustee transfers constitute inherited IRAs under section 408(d)(3)(C), they aren't considered taxable distributions or attempted rollovers, and the IRAs may be maintained separately for required minimum distribution purposes under section 401(a)(9).

[LTR 201924013, 3/15/2019, rel. 6/14/2019]

1. JCT Provides Overview of EO Transportation Benefit Rules

The Joint Committee on Taxation, in a June 14 report (JCX-25-19), summarized rules on tax-exempt organizations' unrelated business taxable income from disallowed transportation-related fringe benefits, in advance of a House Ways and Means Oversight Subcommittee hearing.

[JCT-25-19, 6/14/2019]

1. TCJA Regs Have Partnerships Rethinking Guaranteed Payments

It turns out that being guaranteed money from a business isn't always a good thing.

[ Tax Notes Today, 6/18/2019, Article by Eric Yauch]

1. IRS Says There's No Such Thing as a Free Lunch

Alex Smith analyzes a recently released technical advice memorandum on employer-provided meals and explores the importance of substantiating the value of those meals when excluding them from employees' income.

[Tax Notes Today, 6/19/2019, Article by Alex Smith]

1. IRS Publishes Proposed Regs on Passthrough Deduction for Cooperatives

The IRS has published proposed regulations (REG-118425-18) on the section 199A deduction for qualified business income for cooperatives and on the deduction for domestic production activities for specified agricultural and horticultural cooperatives.

[REG-118425-18; 84 F.R. 28668-28706, 6/19/2019]

1. Draft Passthrough Deduction Guidance Outlines Wage Calculation Methods

The IRS has issued (Notice 2019-27) a proposed revenue procedure that provides computational guidance on how to calculate W-2 wages for purposes of section 199A(g) and under simultaneously issued proposed regulations (REG-118425-18) on the passthrough deduction for cooperatives.

[Notice 2019-27; 2019-28 IRB 1, 6/18/2019]

1. Eleventh Circuit Reverses Denial of Refund Under Claim of Right

The Eleventh Circuit reversed a district court decision that denied an individual's tax refund under the claim of right doctrine stemming from a deduction she claimed for a payment she made to her former husband to return money they jointly treated as income, finding that the requirements of section 1341 were met.

[Nora L. Mihelick v. United States; CA 11, No. 17-14975, 6/18/2019]

1. IRS Updates FAQ on QBI Deduction

The IRS has updated a prior list of frequently asked questions on the section 199A deduction for qualified business income that was created by the Tax Cuts and Jobs Act.

[FAQ, 6/18/2019]

1. IRS Doesn't Want to Pick Audit Reps, but It Can

The IRS has the authority to select partnership representatives for audits in some cases, but that doesn't mean it's something they're eager to do. 

[Tax Notes Today, 6/21/2019, Article by Erich Yauch]