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.
2016 Year-End Estate Planning (Video Included)... [ read ]
Now is the time to engage your clients in discussion regarding the status of their estate planning. Many items must be completed before year-end or they will be lost. Others simply need attention on an annual basis.
IRS Alternative Dispute Resolution Options... [ read ]
In a prior post, I talked about the latest IRS Alternative Dispute Resolution (ADR) program, Fast Track Mediation Collection, which replaced the prior Fast Track Mediation program. In this blog post, I want to talk about some of the other ADR programs that are available to taxpayers as an option for resolving tax disputes on an expedited basis.
