Senate Finance Committee Launches Tax Investigation of Conservation Easements... [ read ]
On March 27th, the Senate Finance Committee launched an investigation into conservation easements by sending letters to 14 people involved in easement transactions. The letters ask for copies of appraisals, promotional materials and internal documents. The senators are also requesting investors' names and addresses, along with information about promoters' fees.
Items You May Want to Discuss with Your Tax Preparer... [ read ]
1. Does the taxpayer have investments in cryptocurrency which resulted in taxable transactions in 2018 or requiring "yes" answer to having a foreign account because of the situs of the exchange or basis issues?
Utilizing a Relative's Unused Lifetime Exemption to Eliminate Capital Gains Tax... [ read ]
Fundamentally, estate plans are designed to pass assets to future generations as efficiently as possible. Nevertheless, it might be beneficial to employ an "upstream transfer" to eliminate built-in gains on highly-appreciated or income-producing assets. This technique achieves an income tax basis adjustment by purposefully causing inclusion of certain assets in an ancestor's non-taxable estate at death-thus utilizing a relative's lifetime estate and gift tax exemption that would otherwise be wasted. The assets then revert back downstream to the original owner or his descendants.
Appeals Court Holds That No Offer Is Too Low To Be A Qualified Offer... [ read ]
In a prior blog post we discussed using a Qualified Offer as a tool for settling a tax case with the government. On February 8th, the U.S. Court of Appeals for the Federal Circuit issued an opinion in BASR Partnership v. United States, holding that a partnership that prevailed in case against the IRS could recover its reasonable litigation costs from the government when it submitted a nominal $1 qualified offer.
Formal Document Request... [ read ]
In prior blog posts, we discussed the IRS using a summons to obtain information and options a taxpayer or third party has for responding to or objecting to a summons. In this blog post we will discuss an additional tool the IRS has to obtain information, a Formal Document Request ("FDR").
Rental Real Estate Under Section 199A Final Regulations... [ read ]
The Section 199A Final Regulations were released on January 18, 2019 and a corrected version was issued on February 1, 2019, with a few corrections and clarifications.
Section 199A Final Regulations Issued on Eve of the 2018 Filing Season... [ read ]
The Section 199A Final Regulations were released on January 18, 2019 and a corrected version was issued on February 1, 2019, with a few corrections and clarifications. In this blog post I will address some of the key items in the Final Regulations, as clarified, other than rental real estate, which I cover in a separate blog post.
Divorce Pleadings May Impact a Request for Innocent Spouse Relief... [ read ]
Generally, spouses who file a joint return are subject to joint and several liability for tax deficiencies under the Internal Revenue Code. Yet the IRS may grant a spouse relief from joint and several liability on a joint return in certain circumstances. One mechanism for obtaining relief from the general rule is to seek relief as an "innocent spouse" under 26 U.S.C. Section 6015(f), which authorizes the IRS to grant equitable relief from joint and several liability.
Still No Answer on Late Filing Penalty on Electronically Filed Tax Returns... [ read ]
In a blog post last year, we discussed the parties' oral arguments in the 5th Circuit Court of Appeal hearing in Haynes v. United States regarding the application of reasonable cause and a late filing penalty to an electronically filed tax return. On January 29th, the 5th Circuit issued an opinion in Haynes vacating the district court's grant of the government's motion for summary judgment and remanded the case to the district court for additional consideration. However, in vacating the lower court decision, the 5th Circuit declined to address the question of whether the U.S. Supreme Court decision in U.S. v. Boyle is still valid law in the age of electronic filing of tax returns.
New Partnership Audit Rules: Should the Partnership Agreement be Amended?... [ read ]
In November 2015, as part of the Bipartisan Budget Act (BBA) of 2015, Congress enacted a new centralized partnership audit regime (PAR) to replace the TEFRA partnership rules. The PAR applies to all partnerships and, like TEFRA, IRS examinations and adjustments will be made at the partnership level. However, unlike TEFRA, the IRS will assess and collect tax from the partnership.
