Federal Tax Update Podcast

This week we look at: Just having a CPA prepare a taxpayer’s return does mean the taxpayer will get reasonable cause relief for assessments IRS announces halt to processing of new ERC claims until after 2023, will slow processing of claims currently in progress

This week we look at: IRS make last minute change to K-2/K-3 FAQ for 2022 returns Preliminary guidance for §174 changes made in TCJA that took effect in 2022 issued by the IRS Copyright 2023, Kaplan, Inc.

This week we look at: HHS sends letter to DEA recommending that marijuana be reclassified as a Schedule III drug General guidance issued determining tax status of 2023 state payments - and IRS asks for comments prior to giving additional guidance IRS clarifies limits of 2007 CCA on ESBTs and NOLs News release on electronic filing of Form 8300  

This week we look at: Proposed regulations issued for digital asset broker reporting on Form 1099-DA IRS delays requirement for high income employees to make employer plan catch-up contribution to designated Roth accounts until plan years beginning after December 31, 2025 2024 health care premium tax credit percentages published by the IRS

This week we look at: Limited relief likely coming for beneficial ownership reporting IRS being challenged in an attempt to treat state law limited partners as receiving SE income Rent your home to your business for 13 days each year plan mainly failed Advance memo states IRS objection to a marketed trust tax avoidance plan IRS memo explains credit unions can only claim COVID ERC on 2021 wages

This week we look at: Deduction for non-qualified deferred compensation not accelerated for the seller when the liability is transferred to the buyer of a business  Tax professionals and taxpayers warned about issues with certain employee stock ownership plan (ESOP) arrangements Reduction of non-recourse debt amount was added to sales proceeds, not a cancellation of debt so no §108 relief was available

This week we look at: IRS rules cryptocurrency staking rewards are taxable when taxpayer obtains dominion and control Interim guidance issued for home energy audit tax credit under IRC §25C added by IRA 2022 Proposed regulations issued to add monetized installment sales to listed transactions

This week we look at: Oversight Subcommittee of House Ways & Means Committee holds a hearing on ERC issues, discusses potential amnesty program IRS ending most announced revenue officer visits Taxpayer finds out that there may very well be a tax consequence when you borrow against your life insurance policy and then let the policy lapse

This week we look at: IRS memo makes it clear the agency is very skeptical about extended supply chain ERC claims Third Circuit rules that equitable relief is available for failure to file Tax Court petition in 90 day period for a deficiency IRS asked by Tax Court to justify suspense account method for losses deducted in excess of basis in closed years Taxpayers had to pay tax on funds taken from IRA/pension funds that were paid to fraudster

The IRS looks at: IRS extends SECURE Act inherited IRA RMD relief for one additional year, adds special rollover rule for those born in 1951 due to SECURE 2.0 Act changes IRS grants relief to victims of Vermont flooding. Failure to attach simple election leads to requesting (and paying for) 11 separate private letter rulings Copyright 2023, Kaplan, Inc.