IRS Injured Spouse Relief Provisions... [ read ]
Last year the Treasury Inspector General For Tax Administration (TIGTA) issued a report on the IRS track record in injured spouse cases. Although similar to the more well-known innocent spouse relief provisions, the injured spouse relief provisions do not relieve the injured spouse of a joint liability on a valid jointly filed return. Instead, the injured spouse provisions allow the injured spouse to request that the IRS return the portion of a joint refund taken to offset a debt of the non-requesting spouse. The background portion of the TIGTA report explains the intent and procedure for filing for injured spouse relief:
Payroll Taxes, Worker Misclassification and Options for Resolving IRS Audits... [ read ]
Employment taxes and worker misclassification continue to be priorities for the IRS and the Tax Division of the Department of Justice. The IRS has announced information sharing agreements with the Department of Labor and state agencies to find businesses that are misclassifying their workers as independent contractors. The DOJ has made employment taxes and worker misclassification priorities for its civil tax and criminal tax sections. It is very important for any business that uses independent contractors to be aware of its options in an IRS employment tax/worker misclassification audit.
Proposed Regulations under I.R.C. Section 2704 (NOTE: Treasury Withdrew these Regulations in October 2017)... [ read ]
New tax proposed Treasury Regulations may affect the amount of tax on family businesses. Alan Davis discusses the proposed Regulations under I.R.C. Section 2704.
Recently Revised Opinion in American Multi-Cinema, Inc. v. Hegar Narrows Its Previously Broad Scope... [ read ]
On January 6, 2017, the Texas Third Court of Appeals (the "Court") withdrew their opinion and judgment in American Multi-Cinema, Inc. v. Hegar from April 30, 2015 to substitute a revised opinion (No. 03-14-00397-CV (Tex. App.—Austin January 6, 2017, no pet. h.) (mem. op.)). The revised opinion upholds American Multi-Cinema, Inc.'s ("AMC's") cost of goods sold ("COGS") deduction for its film exhibition costs while leaving unresolved whether AMC's products are "perceptible to the senses" and thus qualify as "tangible personal property" under Texas Tax Code Section ("Section") 171.1012(a)(3)(A)(i).
Dealing with Non-filers... [ read ]
On November 18, 2016 at the 2016 New England IRS Representation Conference in Ledyard, Connecticut, I had the honor of being on a panel discussion entitled Dealing with Non-filers. The panel covered a wide range of issues--from the routine to the exceptional--encountered by tax professionals when representing taxpayers before the IRS.
The IRS Increases Taxpayer Entrance Fees for Installment Agreements While Adding Reduced Online Option... [ read ]
On December 2, 2016, the IRS issued final regulations outlining increased installment agreement entrance fees while adding a reduced fee for online payment agreements. The change in installment agreement entrance fees will apply to installment agreements entered into on or after January 1, 2017.
No Good Deed Goes Unpunished - Loan by Physician/Owner to Medical Practice for Payroll Triggers Trust Fund Penalty... [ read ]
As the old adage goes, no good deed goes unpunished. In McClendon vs. United States, decided on November 17, 2016, the federal district court for the Southern District of Texas upheld the IRS' trust fund penalty assessments against a good-Samaritan doctor who, following another employee's embezzlement of funds from the medical practice, loaned money to the practice so it could make payroll. The decision stands as an important reminder to taxpayers of the hair-trigger nature of trust fund penalty liability.
IRS Extends Disclosure Deadline for Certain Captive Insurance Companies... [ read ]
Last month, I blogged on the IRS' identification of Code Section 831(b) micro captives as "transactions of interest," which triggered an obligation by taxpayers and material advisors to formally disclose the details of their prior-year insurance transactions to the IRS by January 30, 2017 or otherwise face potential penalties up to $50,000.
IRS Finalizes Documentation Requirements for Related-Party Debt: The Regulations and Their Effect on Closely-Held Corporations... [ read ]
In October of 2016, the IRS issued final regulations under IRC code section 385. The final regulations cover a number of issues under Internal Revenue Code ("IRC") section 385. IRC section 385 deals, in general, with whether an interest in a corporation should be treated as stock or debt for federal income tax purposes. The purpose of this article is to discuss the documentation requirements under Treas. Reg. § 1.385-2 for related-party debt and touch on what effect these requirements may have on closely-held corporations.
The IRS Adds Conservation Easements to the List of Tax Avoidance Transactions... [ read ]
On December 23rd the IRS issued Notice 2017-10 , which adds syndicated conservation easements to the category of transactions that require formal disclosure by investors and advisors to the IRS. Any taxpayer or advisor who is required to make a disclosure but fails to do so could face penalties of up to $50,000.
