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.
Circumventing the Nexus Requirement: Colorado Law Imposing Sales Tax Obligations on Out-of-State Retailers is Upheld... [ read ]
On December 12, the U.S. Supreme Court denied the petition for certiorari in Direct Marketing Association v. Brohl (Direct Marketing). As a result, the Tenth Circuit's earlier decision in Direct Marketing will stand. In Direct Marketing, 814 F.3d 1129 (10th Cir. Feb. 22, 2016), the Tenth Circuit upheld a Colorado law requiring out-of-state retailers with no physical presence in Colorado to either voluntarily collect sales tax or comply with substantial notice and reporting requirements. At least arguably, the Colorado statute at issue represents yet another attempt by a state to circumvent the physical presence requirement imposed by the U.S. Supreme Court on a state's ability to impose its tax collection obligations on an out-of-state entity.
Investment Through Foreign-Owned Entities Just Got More Burdensome... [ read ]
Beginning January 1, 2017, foreign-owned single member LLCs—disregarded entities commonly used to invest in U.S. real estate—will have increased reporting and record keeping requirements.
IRS Introduces New Alternative Dispute Resolution for Taxpayers in Collection... [ read ]
On November 18, the IRS issued Rev. Proc. 2016-57 which provides guidance for the new Small Business/Self Employed (SBSE) Fast Track Mediation Collection (FTMC). The FTMC replaces the SB/SE Fast Track Mediation which was infrequently used and is now obsolete.
The IRS is Considering Adding Conservation Easements to the List of Tax Avoidance Transactions... [ read ]
Conservation easements are legitimate and very good tax planning transactions for taxpayers who wish to preserve valuable land and wildlife habitats. If the conservation easement is done properly, a taxpayer may be able to claim a substantial charitable contribution deduction pursuant to Section 170. However, due to inflated appraisals, poorly drafted documentation, improper deductions and unscrupulous promoters, the IRS is considering adding syndicated conservation easements to its catalog of "listed transactions".
The IRS is Increasing Their Focus on Bitcoin and Other Virtual Currencies... [ read ]
On November, 17, 2016, the Department of Justice filed a petition in a United States District Court in Northern California asking the court to issue a John Doe Summons to Coinbase, the largest bitcoin exchange in the U.S., asking for the records of all customers who bought virtual currency from Coinbase for the years 2013, 2014 and 2015.
IRS Mandates Disclosure of Small Captives Before January 30, 2017... [ read ]
The IRS has officially declared war on small captive insurance arrangements that rely on I.R.C. Section 831(b) and the ability of the captive to exclude from income a certain amount of premiums earned each year. In Notice 2016-66, the IRS identified these microcaptives, as they are commonly known by, as "transactions of interest" for federal income tax purposes. This identification triggers an obligation by taxpayers and material advisors to formally disclose the details of their insurance transactions to the IRS or otherwise face potential penalties up to $50,000.
Tax Do-Overs: Unwinding a Transaction under the Rescission Doctrine... [ read ]
Growing up my Mom used to say "You've made your bed, now lie in it." Luckily for taxpayers, my Mom is not the IRS. The IRS understands that mistakes happen, conditions change, and deals sour. Under the rescission doctrine, a taxpayer may unwind a transaction and avoid federal income tax consequences flowing from the rescinded transaction.
Going..Going..Gone. Face-To-Face IRS Appeals Conferences are Disappearing... [ read ]
Effective October 1, 2016, the IRS has revised the Internal Revenue Manual (IRM) instructing Appeals Officers that most Appeals conferences will be held by telephone instead of in person. The changes to the IRS are in response to the dwindling IRS budget and lack of manpower.
