Accounting firm’s distributed clients are intangible assets
But related income allocations did not have substantial economic effect because the partnership did not properly maintain capital accounts, the Tax Court held.
Tax
Blast from the past: Tax planning with the repair regs.
Elections made as long as nine years ago may need updating.
Debt arrangement did not give rise to an interest in partnership equity
The Tax Court respects a property developer’s interest deductions despite the lender’s entitlement to a share of net profits.
Line Items
Prop. regs. identify syndicated conservation easements as listed transactions ... Final regs. issued on centralized partnership audit regime ... Domestic filing exception requirements modified in draft Scheds. K-2, K-3 ... Clean energy project prevailing wage rate and apprenticeship requirements issued
New online portal available for businesses to file Forms 1099
Although available to businesses of any size, the IRS expects the new Information Returns Intake System to be especially useful to small businesses that now file paper Forms 1099.
Taxpayers reminded about digital asset question and income reporting
The IRS also expanded and clarified the instructions for answering the question to help taxpayers answer it correctly. Taxpayers must answer the question even if they didn’t engage in activities involving digital assets, just as in the 2021 tax year.
FinCEN provides time estimates for compiling beneficial ownership details
FinCEN estimates that most companies will have a simple structure that will require 90 minutes per response, but complex entry filings will require much more time.
What’s the 411? Explaining Schedules K-2 and K-3
Tax experts discuss the intricacies of the revised draft versions of the Schedule K-2 and K-3 forms, including who needs to file them and when, in this podcast episode with transcript.
Auto depreciation limitations make a big leap for second year in a row
The IRS issued sharply higher new depreciation limitations for passenger automobiles, including those for which bonus depreciation is applied.
IRS to accept 2022 tax returns starting Jan. 23
The IRS said that most electronic filers will receive their refund within 21 days if they choose direct deposit and there are no issues with their tax return. The deadline to file is Tuesday, April 18.
Taxpayer advocate Q&A: IRS backlogs, service calls, new leadership
National Taxpayer Advocate Erin Collins talks about the “balancing act” of her role, assesses the IRS backlog, and offers advice for practitioners and taxpayers in this podcast episode with transcript.
FinCEN proposes rules about access to beneficial ownership information
Proposed regulations under the Corporate Transparency Act address protocols for access to beneficial owner information by authorized recipients.
National taxpayer advocate: IRS in better shape now than a year ago
Erin Collins mentions improvement in her annual report to Congress, but she says the IRS still needs to deal with the unanswered phone calls, including the 16% answer rate at the Practitioner Priority Service line.
Unemployment compensation exclusion corrections led to 12 million refunds
Nearly 12 million taxpayers received refunds for 2020 through automatic corrections the IRS made because the American Rescue Plan Act added an exclusion for unemployment compensation after some taxpayers had already filed their returns.
TIGTA: 14,000 taxpayers improperly subject to private collection agencies
A TIGTA audit report says the IRS wrongly included over 14,000 low-income taxpayers among those subject to private collection agencies. The IRS disputed the report, saying those taxpayers aren’t protected by the Taxpayer First Act.
Key tax and retirement provisions in the Secure 2.0 Act
The year-end appropriations act included the Secure 2.0 Act, which makes many changes to the retirement plan rules, including expanding automatic enrollment and increasing the starting age for required minimum distributions.
Business standard mileage rate increases for 2023
The standard mileage rate for business use of a vehicle has increased, the IRS announced, effective as of Jan. 1.
The rise of the cash balance pension plan
Become familiar with this hybrid type of pension plan and its advantages for the right businesses.
Taxpayer’s charitable deduction for artwork donation denied
An art dealer and collector lacked reasonable cause for failing to properly document a sculpture’s value, the Tax Court holds.
CPAs rev up for a new tax season
While 2022 returns are relatively unaffected by recent tax law changes, a few new issues will require preparers’ attention.
