IRS does not acquiesce to real estate professional holding
The IRS announced in Action on Decision 2017-07 it will not acquiesce to a federal district court's decision in Stanley, No. 5:14-cv-5236 (W.D. Ark. 2015), that (1) mere possession of a stock certificate, disregarding other conditions, restrictions, or limitations on the possessor's rights regarding the stock, constitutes ownership for purposes of Sec. 469(c)(7); and (2) taxpayers that qualify as real estate professionals under Sec. 469(c)(7) generally are permitted to group their rental real estate activities with other nonrental trade or business activities for other purposes of Sec. 469 beyond determining material participation in the rental real estate activities.
IRS issues procedure granting automatic approval for certain defined benefit plan funding method changes
The IRS issued Rev. Proc. 2017-56, which updates Rev. Proc. 2000-40 to take into account the provisions of Sec. 430, which was enacted as part of the Pension Protection Act of 2006, P.L.109-280. The revenue procedure provides automatic approval for certain changes in the funding method used for single-employer defined benefit plans for calculations described under Sec. 430.
California wildfire victims have a tax extension
In News Release IR-2017-172, the IRS announced it was extending relief to taxpayers affected by wildfires in designated areas of California who have obligations to file certain individual and business tax returns and make certain payments due on or after Oct. 8, 2017, and before Jan. 31, 2018, allowing these taxpayers to file such returns and make such payments by the latter date. These returns and payments include tax year 2016 individual returns with valid extensions that were otherwise due on Oct. 16, 2017, and quarterly estimated tax payments otherwise due on Jan. 16, 2018. The designated areas include seven California counties: Butte, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba. Residents of the counties and firefighters and relief workers serving there but living elsewhere are eligible for the relief, the IRS stated.