Scacpa's Weekly Federal Tax Update

Lynn Nichols Federal Tax Update Podcast March 26, 2018, edition   Listen as Lynn Nichols provides commentary on 5 Items pertaining to current developments in U.S. tax law. This week’s topics include: Plastic Surgeon’s Fraud, Tax Evasion Conviction Affirmed   A divided Third Circuit upheld a plastic surgeon’s conviction for fraud and tax evasion stemming from his participation in a tax fraud scheme, finding that the district court didn’t abuse its discretion by excluding evidence that he paid his taxes after discovering he was being investigated or by allowing allegedly unfair comments by the government. [Evdokimow, David v. United States; CA 3; No. 15-3876; 3/19/2018]   IRS Says Vasectomy Decision Could Be Reversible The IRS could revisit its recent decision that male sterilization doesn’t qualify as preventive care under some health plans, but first the agency needs a workable standard for determining what is preventive. (Speech at Employers Council on Flexible Compensation) [Tax Notes Today; 3/20/2018

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

Lynn Nichols Federal Tax Update Podcast March 19, 2018, edition   Listen as Lynn Nichols provides commentary on 8 Items pertaining to current developments in U.S. tax law. This week’s topics include: IRS Publishes List of Practitioners Subject to Disciplinary Action The IRS has published a list of attorneys, CPAs, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers who have received disciplinary sanctions for violating the regulations governing practice before the IRS. [Announcement 2018-4; 2018-10 IRB 401; 3/5/2018]   Business Network Loses Exemption The IRS revoked the tax-exempt status of an organization described in section 501(c)(3) because its primary activity is operating a networking event for business owners and investors, which is not an exempt purpose. [LTR 201809011; 9/21/2017]   Tax Court Invalidates Scheme to Bypass Roth IRA Limits A group of taxpayers is on the hook for excise taxes after the Tax Court invalidated their scheme to contribute funds to a f

Lynn Nichols Federal Tax Update Podcast March 12, 2018, edition   Listen as Lynn Nichols provides commentary on 6 Items pertaining to current developments in U.S. tax law. This week’s topics include:  

Lynn Nichols Federal Tax Update Podcast March 5, 2018, edition   Listen as Lynn Nichols provides commentary on 6 Items pertaining to current developments in U.S. tax law. This week’s topics include:   Formula-Driven Tax Law Provisions Cause Havoc for Businesses Businesses are challenging the efficacy and burden of the formulaic approach that taxwriters adopted in structuring several provisions of the Tax Cuts and Jobs Act. [Tax Notes Today; 2/20/2018; Article by Emily Foster]   Second Circuit Upholds New York’s Donor Disclosure Requirement The Second Circuit, partially affirming a district court, held that a New York state requirement that registered charities disclose donor information doesn’t violate the First Amendment and is not preempted by federal tax law, finding that the requirement doesn’t impermissibly chill speech or act as a prior restraint on donation solicitation. [Citizens United et al. v. Eric T. Schneiderman; CA 2; No. 16‐3310; 2/15/2018  ]   No Debt Cancellation Reporting Required fo

Lynn Nichols Federal Tax Update Podcast Feb. 26, 2018, edition   Listen as Lynn Nichols provides commentary on 6 Items pertaining to current developments in U.S. tax law. This week’s topics include: No Plans to Apply Reasonable Compensation Beyond S Corps There are no plans to apply the reasonable compensation exclusion to qualified business income under the new 20 percent passthrough business deduction to entities other than subchapter S corporations, according to a Treasury official. [Tax Notes Today; 2/12/2018]     Tax Equity Industry Struggling to Adapt to TCJA The new tax law’s corporate-friendly changes welcomed by most businesses have left investors and brokers involved in the tax credit financing industry spinning. [Tax Notes Today; 2/14/2018]     IRS to Close Carried Interest ‘Loophole’ Prompted by New Law Fund managers using shell companies to avoid stricter limits on the use of carried interest aren't likely to see the tax benefits they were expecting.   [Tax Notes Today; 2/15/2018]    

Lynn Nichols Federal Tax Update Podcast Feb. 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:   Partnership Audit Push-Out Election Comes With Strict Timeline Partnerships pushing out adjustments to partners under the new centralized partnership audit regime must do so within 45 days of receiving a final partnership adjustment, even if they are seeking judicial review. [Tax Notes 2/5/2018, Article by Matthew Madara]     IRS Releases Practice Unit on S Corp Debt Basis Adjustments The IRS released a practice unit on adjustments to an S corporation shareholder’s debt basis in various circumstances, explaining why shareholders must track stock basis and debt basis separately. [SCO/C/53_4_2_2-05 (2016)]     S Corp Shareholder Cannot Skip Bona Fide Indebtedness Test The Tax Court rejected an S corporation shareholder’s argument that the section 1366 back-to-back loan rules eliminated the requirement t

Lynn Nichols Federal Tax Update Podcast Feb. 5, 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:   How the Tax Law puts pressure on Deemed Asset Acquisition rules. A combination of a 100% bonus depreciation with a 338(h)(10) election could result in the entire purchase price of a business being written off in the year of acquisition.   The Interest Expense Limitation is presenting challenges for partnerships. The TCJA limits the Interest Expense deduction; but there is one limitation at the partnership level and a second limitation at the individual partner level, and that can become troublesome.   When is a meal entertainment? Company picnics and holiday parties will still be deductible, but what is deductible in the way of entertainment expenses?   Revenue Procedure 2018-11, an annual update, on when proper preparation of a return will avoid accuracy-related penalties.   In an email from the Chief

Lynn Nichols has been explaining federal tax law to audiences since 1969. He is now partnering with SCACPA to launch a series of podcasts that answer questions stemming from the Tax Cuts and Jobs Act. He’ll describe in each installment how the actions of the IRS and the U.S. Tax Court affect how you should interpret the tax code. Listen to each new episode, and you’ll better understand how the new tax laws work.