Manage episode 202159315 series 2136540
Lynn Nichols Federal Tax Update Podcast
March 19, 2018, edition
Listen as Lynn Nichols provides commentary on 10 Items pertaining to current developments in U.S. tax law. This week’s topics include:
- Attractiveness of S Corporations After 2017 Larry Crumbley and James R. Hasselback discuss how the Tax Cuts and Jobs Act made significant changes that apply to S corporations, and they compare advantages and disadvantages of S corporation and C corporation status. [Tax Notes Today, 3/12/2018, Article]
- Individual Can Amend Complaint to Make False Information Returns ClaimA U.S. district court granted a pro se individual leave to amend her complaint against Amazon Services LLC that alleged the company improperly reported income for her to the IRS that resulted in a tax liability; she now may make a cognizable claim under section 7434 that Amazon willfully filed false information returns for her.
- Employer-Provided Tax Prep Services Are Includable in Employee IncomeIn a legal memorandum, the IRS ruled that tax preparation services provided by a U.S. corporation for the benefit of its employees working in foreign countries are includable in the gross income of those employees at the fair market value of the services. [ILM 201810007; 11/28/2017, released 3/9/2018]
- Payments to Property Owners Not Reportable IncomeThe IRS ruled that subsidiaries that are required by a state to make payments to, or incur costs on behalf of, eligible property owners don’t have to provide information returns for those costs or payments; the IRS declined to rule on the effect of future compensatory payments to additional property owners because those payments are the subject of current litigation. [LTR 201810004; 12/8/2017, released 3/9/2018]
- JCT Reviews Federal Tax Provisions That Expired in 2017The Joint Committee on Taxation, in a report (JCX-5-18) prepared for a March 14 House Ways and Means Tax Policy Subcommittee hearing, listed federal tax provisions that expired in 2017 and staff revenue estimates of making these provisions permanent. [ JCX-5-18; 3/14/2018]
- Decisions to Revoke S Corp Elections Not Just About the RatesSubchapter S corporations that may be lured by lower rates to convert to C corporation status might face some unanticipated and undesirable consequences if they overlook broader tax implications and longer-term strategic considerations. [Tax Notes Today; 3/14/2018; Article by Emily L. Foster]
- IRS Ending Offshore Voluntary Disclosure ProgramThe IRS has announced (IR-2018-52) that it will begin to ramp down and end the 2014 Offshore Voluntary Disclosure Program on September 28, 2018, urging U.S. taxpayers with undisclosed foreign financial assets to use the program before it closes. [IR-2018-52; 3/13/2018]
- New LB&I Compliance Campaigns Include 3 Partnership IssuesThe IRS Large Business and International Division has announced five more campaigns, including three dealing with partnership issues. [Tax Notes Today; 3/14/2018, Article by Stephanie Cumings] LB&I Plans Exams of Spinoff Costs Without Explicit RulesThe IRS intends to enforce the requirement that taxpayers capitalize facilitative costs for tax-free distributions in spinoff transactions despite a dearth of guidance on how that should be done. [Tax Notes Today; 3/15/2918, Article by Emily Foster]
- IRS Curbs Benefit Plan With No Meaningful BenefitsEmployees who don’t receive benefits under a floor-offset plan, while the highly paid executives do, can’t be counted for purposes of the plan’s minimum participation requirement, according to the IRS Office of Chief Counsel. [Tax Notes Today; 3/15/2018, Article by Stephanie Cumings]
- Tax Court Holds Short Sale, Debt Cancellation Was Single TransactionThe Tax Court, declining to impose an accuracy-related penalty, held that a couple’s short sale of a townhouse and resulting debt forgiveness on their mortgage was a single transaction for which they recognized neither a gain nor loss. [Simonsen, Karl F. et ux. v. Commissioner; No. 29698-14; 150 T.C. No. 8, 3/14/2018]
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