Lynn Nichols Federal Tax Update Podcast

July 23, 2018, edition

 

We are back after a short hiatus! Listen as Lynn Nichols provides commentary on 8 Items pertaining to current developments in U.S. tax law. This week's topics include:

1. How to Decide Whether an S Corp Is a Corporation

In news analysis, Marie Sapirie discusses whether Treasury has the authority to say that an S corporation isn't a corporation for purposes of the carried interest provision in the Tax Cuts and Jobs Act.

[Tax Notes Today; 7/16/2018, Article by Marie Sapirie   

 

1. IRS to Issue Regs on Suspension of Miscellaneous Itemized Deductions

The IRS has announced its intention to issue regulations clarifying how newly enacted section 67(g), which eliminates miscellaneous itemized deductions for tax years beginning after December 31, 2017, and before January 1, 2026, affects the deductibility of some expenses that are incurred by estates and non-grantor trusts.

[Notice 2018-61; 2018-31 IRB 1; 7/13/2018]   

 

1. IRS Drops Donor Disclosure Requirements

Most types of tax-exempt organizations will no longer have to disclose identifying information about their donors, the Treasury Department and IRS announced late July 16.

[ Rev. Proc. 2018-38; 7/16/2018]   

 

1. Expect 199A Guidance in 'Weeks, Not Months,' Kautter Says

Tax practitioners should expect a raft of new IRS guidance in coming weeks resulting from changes wrought by the 2017 tax bill, according to acting IRS Commissioner David Kautter.

[Tax Notes Today; 7/18/2018; Article by William Hoffman]   

 

1. IRS Gives Tax Pros 6 Safeguards to Protect Taxpayer Data

The IRS and its Security Summit partners have outlined the "security six" safeguards for tax professionals to use to protect sensitive taxpayer data stored on practitioners' computers, noting that many of the safeguards are also useful for any taxpayer or small business.

[Information Release, IR-2018-150, 7/17/2018]   

 

1. IRS Highlights Pitfalls of New Due Diligence Requirement

The IRS is warning tax return preparers to be wary of married taxpayers trying to claim head of household status, especially given the tax law's new due diligence requirement.

[Tax Notes Today; 7/19/2018; Article by Stephanie Cumings] 

 

1. Wife Can't File Separate Returns for Refunds After Joint Filings

A U.S. district court held that joint returns an individual's husband filed by signing her name without her knowledge or consent were valid returns because she left all tax matters to her husband and intended to file joint returns with him; the court held that she could not replace the valid joint returns with separate returns seeking refunds.

[Coggin, Alice J. v. United States; USDC Mid NC;  No. 1:16-cv-00106; 7/17/2018]