2018 Fed Tax Update Outline

Circular 230

Tax practitioner censured for violating conflict of interest rules. IR-2018-154, (IRS), 2018-07-25

https://www.irs.gov/newsroom/irs-censures-tax-practitioner-for-willfully-mishandling-conflicts-of-interest

FBAR

Couple not entitled to refund of FBAR penalties; no reasonable cause. Jarnagin v. U.S., No. 15-1534T, (Fed Cl.), 2017-11-30

https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2015cv1534-36-0

FBAR filing deadline extended for individuals with signature authority but no financial interest in certain accounts. FinCEN Notice 2017-1, (IRS), 2017-12-22

https://www.fincen.gov/sites/default/files/shared/FBAR_Notice_2017-12-22-17.pdf

Title 31 USC §5321

IRS allowed to impose penalty in excess of $100,000 for FBAR violations. Norman v. U.S., Dkt 15-872, (Fed Cl), 2017-07-31

https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2015cv0872-44-0

U.S. citizens and resident aliens must report foreign financial assets. IR-2018-87, (IRS), 2018-04-09

https://www.irs.gov/newsroom/irs-reminds-those-with-foreign-assets-about-us-tax-obligations

IRS not allowed to impose penalty in excess of $100,000 for FBAR violations. Wadhan v. U.S., no. 17-cv-01287, (DC CO), 2018-07-18

https://www.gpo.gov/fdsys/pkg/USCOURTS-cod-1_17-cv-01287/pdf/USCOURTS-cod-1_17-cv-01287-0.pdf

Offshore voluntary compliance program ending soon. IR-2018-176, (IRS), 2018-09-04

https://www.irs.gov/newsroom/irs-offshore-voluntary-compliance-program-to-end-sept-28

Code Sec. 7805(b)

TE/GE issues memo on relief from retroactivity and form 1023-ez; TAS memo provides guidance on advocating for taxpayers with modules assigned to PCA; wage and income transcript availability procedure updated. TEGE-04-0118-0001, (IRS), 2018-01-05

https://www.irs.gov/pub/foia/ig/spder/tege-04-0118-0001.pdf

Code Sec. 7804

Taxpayer advocate releases NTA 2017 annual report to congress. IR-2018-3, (IRS), 2018-01-10

https://content.govdelivery.com/accounts/USIRS/bulletins/1d2128d

National taxpayer advocate releases mid-year report to congress. IR-2017-143, (IRS), 2018-06-27

https://www.irs.gov/newsroom/national-taxpayer-advocate-identifies-priority-areas-in-mid-year-report-to-congress-focuses-on-customer-service

Code Sec. 7803

Taxpayer bill of rights outlined by IRS. FS-2018-2, (IRS), 2018-02-13

https://www.irs.gov/newsroom/irs-outlines-taxpayer-bill-of-rights-0

Individual’s complaint seeking damages for emotional distress dismissed. Kennedy v. Commissioner, No. 5:18-cv-00257, (DC E.D. PA), 2018-06-18

https://www.leagle.com/decision/infdco20180619933

No enforceable right to IRS appeals review under TBOR. Facebook, Inc. v. U.S., 17-cv-06490-LB, ( DC Calif.), 2018-05-14

https://www.leagle.com/decision/infdco20180516c07

Code Sec. 7701(a)(36)

Return preparers reminded to renew PTINs and CE for AFSP. IR-2017-207, (IRS), 2017-12-20

https://www.irs.gov/newsroom/irs-tax-professionals-need-2018-ptin-continuing-education-for-annual-filing-season-program-due-by-year-end

Code Sec. 7609

Bitcoin exchange summons partially enforced. U.S. v. COINBASE, INC., No.17-cv-01431-JSC, (DC N.D. CA), 2017-11-28

https://www.leagle.com/decision/infdco20171130f45

LLCs do not fall under RFPA’s waiver of sovereign immunity. Hohman v. Eadie, No. 17-1869, (6th Cir.), 2018-07-05

https://law.justia.com/cases/federal/appellate-courts/ca6/17-1869/17-1869-2018-07-05.html

Code Sec. 7602

Administrative summons properly enforced. U.S. v. Mellon, No. 17-399, (2d Cir.), 2018-01-16

https://caselaw.findlaw.com/us-2nd-circuit/1886000.html

Attorney-client privilege did not protect client names and addresses from summons. U.S. v. Servin, No. 17-1371, (3rd Cir.), 2018-02-01

http://www2.ca3.uscourts.gov/opinarch/171371np.pdf

Summoned individuals required to testify. U.S. v. Pate, No. 16-4282, (8th Cir.), 2018-02-06

https://caselaw.findlaw.com/us-8th-circuit/1888396.html

IRS has proposed changes to summons interview regulations. NPRM REG-132434-17, (IRS), 2018-03-28

https://www.govinfo.gov/content/pkg/FR-2018-03-28/pdf/2018-06242.pdf

IRS summonses properly enforced for lawyer’s clients’ names. Presley v. U.S., No. 17-10182, (11th Cir), 2018-07-18

http://media.ca11.uscourts.gov/opinions/pub/files/201710182.pdf

Individual properly refused to answer summons interview questions. U.S. v. Lui, No. 16-cv-00969-JST, (DC N.D.CA), 2018-04-18

https://www.leagle.com/decision/infdco20180419833

Code Sec. 7601

IRS updates instructions for surveying employment tax returns. SBSE-04-1217-0080, (IRS), 2017-12-14

https://www.irs.gov/pub/foia/ig/sbse/sbse-04-1217-0080(1).pdf

IRS CI division’s annual report shows impact of staffing declines. Criminal Investigation 2017 Annual Report, (IRS), 2017-12-20

https://www.irs.gov/newsroom/irs-criminal-investigation-releases-fiscal-year-2017-annual-report

Settlements for specific dollar amounts and closing agreements discussed. AP-08-0718-0011, (IRS), 2018-07-05

https://www.irs.gov/pub/foia/ig/appeals/ap-08-0718-0011.pdf

Code Sec. 7502

Partnership fails to prove timely mailing in refund case. Jones, Bell, Abbott, Fleming & Fitzgerald L.L.P., No. CV-17-7752, (DC C.D.CA), 2018-05-15

https://casetext.com/case/jones-bell-abbott-fleming-fitzgerald-l-lp-v-united-states-1

Return sent to revenue officer not sufficient to establish filing of tax return for bankruptcy discharge. In re Harold, 16-40659, ( BC E.D.Mich), 2018-08-20

https://www.leagle.com/decision/inbco20180822711

Code Sec. 7491

IRS not required to prove compliance with sec. 6751(b) (supervisory approval of penalties) in partnership level proceeding. Dynamo Holdings Limited Partnership v. CIR, 150 T.C. No. 10, (USTC), 2018-05-07

https://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11640

Code Sec. 7483

Time to file appeal of tax court decision is not extended by successive motions to vacate. Annamalai v. CIR, 17-60255, (5th Cir), 12:00:00 AM

http://www.ca5.uscourts.gov/opinions/pub/17/17-60255-CV0.pdf

Code Sec. 7436

TE/GE, TAS issue memos, updated IRM procedures available. TEGE-04-0418-0006, (IRS), 2018-04-17

https://www.irs.gov/pub/foia/ig/spder/tege-04-0418-0006.pdf

Reclassification of dividends as wages for s-copr does not give tax court jurisdiction under IRC 7436(a)(1). Azarian v. Cir, 17-2134, (8th Cir), 2018-07-27

https://law.justia.com/cases/federal/appellate-courts/ca8/17-2134/17-2134-2018-07-27.html

Code Sec. 7434

Doctor entitled to damages for fraudulent 1099. Angelopoulosv. Keystone Orthipedic Specialists, 12-cv-5836, (DC N.D.Il), 2018-01-18

https://www.leagle.com/decision/infdco20180710b28

Individual did not have standing under IRC 7434 to sue entity that issued fraudulent 1099 to individuals sham corporation. Baker v. Batmasian, 17-12830, (11th Cir.), 2018-04-09

https://law.justia.com/cases/federal/appellate-courts/ca11/17-12830/17-12830-2018-04-09.html

Code Sec. 7433

Taxpayers can recover emotional distress damages for IRS ‘s violation of bankruptcy stay. Hunsaker v. U.S., No. 16-35991, (9th Cir.), 2018-08-30

http://cdn.ca9.uscourts.gov/datastore/opinions/2018/08/30/16-35991.pdf

Code Sec. 7430

Charitable organization not entitled to award of attorney fees when IRS conceded after receiving petition. Friends of the Benedictines in the Holy Land, Inc. v. CIR, 150 T.C. No. 5, (USTC), 2018-02-21

https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=11565

Lawyer awarded attorney’s fees for IRS position denying his loses for horse breeding activity. Tolin v. CIR, T.C. Memo. 2018-29, (USTC), 2018-03-19

https://ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11684

Organization entitled to attorney’s fees, costs and expenses as class representative. NorCal Tea Party Patriots, (DC S.D. Ohio), 2018-08-17

https://www.leagle.com/decision/infdco20180820e08

Fiduciaries and beneficiaries of an estate awarded fees and cost after being unsuccessfully sued by the IRS for transferee and fiduciary liability. U.S. v. Johnson, 2:11-cv-00087, (DC Utah), 12:00:00 AM

https://ecf.utd.uscourts.gov/cgi-bin/show_public_doc?211cv0087-222

Code Sec. 7426

Probable cause existed for IRS assertion that a corporation was an alter ego or of delinquent taxpayer. Certified Enterprises, Inc. v. U.S., (DC E.D. MO), 2017-12-13

https://www.leagle.com/decision/infdco20171214f07

Code Sec. 7422

Pro se taxpayer’s complaint for collection damages survives USA motion to dismiss. Wrhel v. US., 16-cv-758-jdp, (DC W.D.WI), 2017-09-29

https://www.wiwd.uscourts.gov/opinions/pdfs/Wrhel%20(16-758)%20mtn%20dismiss%201%20party.pdf

Return preparer’s penalty refund claim dismissed. Nguyen v. U.S., 16cv00391 JAH-DHB, (DC S.D.CA), 2018-01-18

https://www.leagle.com/decision/infdco20180119a28

Individual lacked standing to bring refund claim because former spouse had paid the joint return liability. Samadi v. U.S., 3:16-0562-MBS-PJG, (DC S.C.), 2018-01-30

https://law.justia.com/cases/federal/district-courts/south-carolina/scdce/3:2016cv00562/226636/104/

The third circuit court of appeals held that the filing of a form 843 to recover a shared responsibility payment was proper rather than a form 1040x. Cash v. IRS, 1:15-cv-02439, (3rd Cir.), 2018-02-09

https://www.gpo.gov/fdsys/pkg/USCOURTS-ca3-17-01441/pdf/USCOURTS-ca3-17-01441-0.pdf

Substantial variance doctrine not violated by boxer’s refund action because administrative records proves IRS considered the reasons set forth in boxer’s amended complaint. Cotto-Vazquez v. U.S., 16-2807, (DC P.R.), 2018-02-28

https://law.justia.com/cases/federal/district-courts/puerto-rico/prdce/3:2016cv02807/130804/54/

Couple not entitled to refund; no overpayment. Zhouv. U.S., No. 2018-1012, (Fed. Cir.), 2018-03-15

https://law.justia.com/cases/federal/appellate-courts/cafc/18-1012/18-1012-2018-03-15.html

Government’s motion for stay of district court refund action of native American denied. Perkins v. U.S, 16-CV-495V, (DC W.D.N.Y.), 2018-04-18

https://law.justia.com/cases/federal/district-courts/new-york/nywdce/1:2016cv00495/107753/53/

Refund claim disallowed because variance doctrine applied. Logan v. U.S., 2:18-cv-99-FtM-29MRM, (DC M.D.FL), 2018-06-21

https://www.leagle.com/decision/infdco20180622c17

Code Sec. 7403

Court allows forced foreclosure of liens on property held by individual. U.S. v. Nelson, No. Civ 17-4002, (DC S.D.), 2018-05-25

https://www.leagle.com/decision/infdco20180529850

Code Sec. 7402

Individual not entitled to quiet title. Brattain v. Graverson, No. 2:17-cv-00505, (DC S.D.IN), 2018-03-09

https://www.leagle.com/decision/infdco20180312e51

District court had jurisdiction over bank’s quiet title action. First Sentinel Bank v. U.S., No. 1:2017cv00043, (DC W.D.VA), 2018-05-29

https://law.justia.com/cases/federal/district-courts/virginia/vawdce/1:2017cv00043/109377/13/

Code Sec. 7401

Self-serving, uncorroborated affidavit may create issue of material fact. U.S. v. Stein, No. 16-10914, (11th Cir.), 2018-01-31

https://caselaw.findlaw.com/us-11th-circuit/1887632.html

Code Sec. 7345

IRS issues serious tax delinquency passport denial and revocation guidance. Notice 2018-1, IRB 2018-03, (IRS), 2018-01-16

https://www.irs.gov/irb/2018-03_IRB#NOT-2018-01

Chief counsel discusses IRS ‘s passport certification process. CC-2018-005, (IRS), 2018-04-05

https://www.irs.gov/pub/irs-ccdm/cc-2018-005.pdf

Memo provides guidance to tas employees. TAS-13-0418-0001, (IRS), 2018-04-26

https://www.irs.gov/pub/foia/ig/spder/tas-13-0418-0001_passport_igm.pdf.pdf

Code Sec. 7212

Conviction for obstructing tax law administration reversed. Marinello v. U.S., No. 16–1144, (S.Ct.), 2018-03-21

https://www.supremecourt.gov/opinions/17pdf/16-1144_p8k0.pdf

Individual’s conviction for preparation of false tax returns properly vacated and remanded. U.S. v. Gentle, No. 16-4020, (2nd Cir.), 2018-05-09

https://www.courtlistener.com/opinion/4496361/united-states-v-gentle/

Tax preparer’s IRS obstruction conviction vacated. U.S. v. Westbrooks, No. 16-20409, (5th Cir.), 2018-06-21

https://law.justia.com/cases/federal/appellate-courts/ca5/16-20409/16-20409-2018-06-22.html

Code Sec. 7206

Tax loss may include unpaid state taxes; jury instructions proper. U.S. v. Chang, No. 17-10250, No. 17-10256, (9th Cir.), 2018-07-12

https://caselaw.findlaw.com/us-9th-circuit/1900012.html

Defendant failed to establish facts to support return of capital defense, conviction by district court upheld. U.S. v. Visconti, No. 17-50091, (9th Cir.), 2018-09-24

https://cdn.ca9.uscourts.gov/datastore/memoranda/2018/09/24/17-50091.pdf

Code Sec. 7203

Special skills enhancement for former IRS employee proper. U.S. v. English, No. 16-10360, (9th Cir.), 2018-02-26

https://caselaw.findlaw.com/us-9th-circuit/1890452.html

Code Sec. 7122

Collection financial standards updated. Collection Financial Standards, (IRS), 2018-03-26

https://www.irs.gov/businesses/small-businesses-self-employed/collection-financial-standards

Code Sec. 7121

Form 4549 is not a closing document. taxpayers not entitled to refund of disclosure penalties based on contract theory as there was no form 866 or form 906 closing agreements. HINKLE v. U.S., No. 1:16-cv-01048, (DC NM), 2018-06-15

https://www.leagle.com/decision/infdco20180618779

Code Sec. 6901

Government not entitled to stay prohibition on fee for PTIN. Steele v. U.S.,No. 1:2014cv01523, (DC D.C.), 2018-06-01

https://law.justia.com/cases/federal/district-courts/district-of-columbia/dcdce/1:2014cv01523/167956/78/

Ninth circuit court of appeals overturns tax court, holds that transferee liability applies if shareholders should have known that transaction was for tax avoidance. Slone v. U.S., No. 16-73349, (9th Cir.), 2018-07-24

https://cdn.ca9.uscourts.gov/datastore/opinions/2018/07/24/16-73349.pdf

Code Sec. 6871

Debtor’s transferee liability not entitled to priority. In re Kardash, No.: 8:16-bk-05715-KRM, (BC-DC FL), 2017-09-21

https://www.leagle.com/decision/infdco20170921e78

IRS not allowed to preclude individual’s bankruptcy discharge because it did not show he intentionally failed to pay his tax liabilities. In re J.G. Quiroz, No. 15-10292-R, Adv. No. 16-1027-R, ( BC-DC Okla.), 2018-04-10

https://www.leagle.com/decision/inbco20180411653

IRS employee willfully violated discharge order. I.R.S. v. Murphy, No. 17-1601, (1st Cir.), 2018-06-07

http://media.ca1.uscourts.gov/pdf.opinions/17-1601P-01A.pdf

Filing of collection due process request tolls bankruptcy look-back period for discharge purposes. Tenholder v. U.S., Case No. 17-cv-1310-DRH, (DC S.D. IL), 2018-09-17

https://www.leagle.com/decision/infdco20180918f91

Code Sec. 6751(b)

The verification required by IRC sec. 6330(c)(1) does not require an analysis of the thought process of the approving immediate supervisor under IRC sec. 6751(b)(1) but rather verification that the supervisor approved in writing the initial determination. Blackburn v. CIR, 150 T.C. No. 9, (USTC), 2018-04-05

https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=11616

Chief counsel discusses compliance issues regarding penalties in litigation. CC-2018-006, (IRS), 2018-06-06

https://www.irs.gov/pub/irs-ccdm/cc%202018%20006.pdf

Code Sec. 6707A

Jurisdiction was lacking in claim challenging reportable transaction penalty rescission determination. Brazillai v. US, 17-354 2018-04-03, (Fed. Cl.), 2018-04-30

https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2017cv0354-21-0

Code Sec. 6695

Preparer due diligence rules include head of household eligibility. NPRM REG-103474-18, IRB 2918-32, (IRS), 2018-08-06

https://www.irs.gov/irb/2018-32_IRB#REG-103474-18

Code Sec. 6694

Tax preparer properly convicted of preparing false returns. U.S. v. Jacobs, 17-1508-cr, (2nd Cir.), 2018-05-21

https://www.leagle.com/decision/infco20180521069

Code Sec. 6673

Supervisory approval rule applies to IRS, not tax court imposition of frivolous petition penalty under IRC 6673(a)(1). Williams v. CIR, 151 T.C. No. 1, (USTC), 2018-07-03

https://ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11680

Code Sec. 6672

Responsible person failed to designate payments to IRS. Weder v. U.S., CIV-15-304-M, (DC W.D.OK), 2017-10-16

https://law.justia.com/cases/federal/district-courts/oklahoma/okwdce/5:2015cv00304/93277/42/

Law firm partners were responsible persons liable for trust fund recovery penalty. Spizz v. U.S., No. 1:2015cv02361 Document 82, (DC S.D.N.Y.), 2017-12-04

https://law.justia.com/cases/federal/district-courts/new-york/nysdce/1:2015cv02361/440260/82/

IRS not entitled to summary judgement as to whether limited partner was a responsible person. Ireland v. U.S., 2:17-cv-02014-CAS-AGRx, ( DC C.D.CA), 2018-04-02

https://cases.justia.com/federal/district-courts/california/cacdce/2:2017cv02014/672595/29/0.pdf?ts=1522738360

Issues of fact existed in trust fund recovery refund case. Bibler v. U.S., 2:17-cv-134, (DC S.D.OH), 2018-04-23

https://www.leagle.com/decision/infdco20180424833

Code Sec. 6662

Supervisor’s written approval of penalty part of IRS burden of production and IRS chief counsel can approve penalties. Graev v. CIR, (Graves III), 149 T.C. No. 23, (USTC), 2017-12-20

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11535

Adequate disclosure guidance updated. Rev. Proc. 2018-11, (IRS), 2018-01-29

https://www.irs.gov/pub/irs-irbs/irb18-05.pdf

Code Sec. 6662(e)

LB&I issues guidance regarding assertion of penalties in certain transfer pricing examinations. LB&I-04-0118-003, (IRS), 2018-01-12

https://www.irs.gov/businesses/corporations/instructions-for-examiners-on-transfer-pricing-issue-examination-scope-appropriate-application-of-irc-ss6662e-penalties

LB&I issues instructions on mandatory transfer pricing of IDRS. LB&I-04-0118-001, (IRS), 2018-01-12

https://www.irs.gov/pub/foia/ig/spder/lbi-04-0118-001.pdf

Code Sec. 6651

LLC denied refund of penalties and interest; reliance on employee, CPA for paying taxes did not constitute reasonable cause. Deaton Oil Company, LLC v. U.S., No. 17-2326, (8th Cir), 2018-09-21

http://media.ca8.uscourts.gov/opndir/18/09/172326P.pdf

Code Sec. 6601

IRS announces interest rates unchanged for calendar quarter beginning July 1, 2018. IR-2018-136, (IRS), 2018-06-08

https://www.irs.gov/newsroom/interest-rates-remain-the-same-in-the-third-quarter-of-2018

Fourth quarter 2018 interest rates remain unchanged. Rev. Rul. 2018-25, (IRS), 2018-09-07

https://www.irs.gov/pub/irs-drop/rr-18-25.pdf

Code Sec. 6532

IRS erroneous refund recovery claim untimely; no misrepresentations. Starr International Company, Inc. v. U.S., No. 14-cv-01593 CRC,, (DC D.C.), 2018-01-31

http://procedurallytaxing.com/wp-content/uploads/2018/02/Starr-Decision.pdf

Code Sec. 6511

Media company’s refund claim properly dismissed; claim untimely. Trusted Media Brands, Inc. v. U.S., No. 17-3733-cv., (2nd Cir.), 2018-08-10

https://www.leagle.com/decision/infco20180810155

Code Sec. 6503(a)

CCDM being revised to reflect updated procedures for identifying and handling tax court petitions. CC-2018-008, (IRS), 2018-07-06

https://www.irs.gov/pub/irs-ccdm/cc%202018%20008.pdf

Code Sec. 6502

Transcripts alone insufficient to prove existence of installment agreement. Nugent v. U.S., 5:16-cv-380-JMH, (DC E.D.KY), 2018-01-12

https://law.justia.com/cases/federal/district-courts/kentucky/kyedce/5:2016cv00380/81322/24/

Individual’s collection due process hearing tolled collection limitation period even though taxpayer withdrew CDP because appeals officer continued to consider the CDP. U.S. v. Komlo, No. 15-3789, (DC E.D.PA), 2018-03-14

https://casetext.com/case/united-states-v-komlo

Erroneous credit transfer not tax refund; 10-year limitations period properly applied. Schuster v. CIR, No. 17-11647, (11th Cir.), 2018-04-04

https://law.justia.com/cases/federal/appellate-courts/ca11/17-11647/17-11647-2018-04-04.html

Ten-year limitations period properly suspended; collection action timely. U.S. v. Gilliam, No. 17-1642, (4th Cir.), 2018-06-25

http://www.ca4.uscourts.gov/opinions/171642.U.pdf

Code Sec. 6501

Omission of foreign asset income did not extend limitations period. Rafizadeh v. CIR, 150 T.C. No. 1, (USTC), 2018-01-02

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11522

VIBIR returns processed by IRS triggered limitations period. Coffey Hulett v. CIR,150 T.C. No. 4, (USTC), 2018-01-29

https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=11567

Noncurrent year PFIC gains not income, deficiencies barred. Toso v. CIR, 151 T.C. No. 4, (USTC), 2018-09-04

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11761

Code Sec. 6343(b)

Individuals, businesses get more time to make wrongful levy claims. IR-2018-126, (IRS), 2018-05-25

https://www.irs.gov/newsroom/new-law-gives-individuals-and-businesses-more-time-to-challenge-a-wrongful-irs-levy-newly-revised-publication-can-help

Code Sec. 6334

Offer-in-compromise not alternative for collection. U.S. v. Scribner, No. 17-2825, (8th Cir.), 2018-08-17

http://media.ca8.uscourts.gov/opndir/18/08/172825P.pdf

Code Sec. 6332

Individual’s complaints barred by anti-injunction act. Saepoff v. U.S., No. 17-35589, (9th Cir.), 2018-06-21

https://cdn.ca9.uscourts.gov/datastore/memoranda/2018/06/21/17-35589.pdf

Code Sec. 6331

Installment agreement did not prohibit IRS from enforcing lien. State Auto Property and Casualty Insurance Company, 3:16-CV-73-DMB-JMV, (DC N.D.Miss.), 2018-08-06

https://www.leagle.com/decision/infdco20180807g37

Code Sec. 6330

Appeals officer abused discretion; levy not sustained. Credex, Inc. v. CIR, TC Memo. 2017-241, (USTC), 2017-12-05

https://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11497

Code Sec. 6320

Meeting with collections officer not prior administrative proceeding. Loveland v. CIR, 151 T.C. No. 7, (USTC), 12:00:00 AM

https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=11775

Code Sec. 6223

Centralized partnership audit regime partnership representative final regulations issued. T.D. 9839, (IRS), 2018-08-27

https://www.irs.gov/irb/2018-35_IRB#TD-9839

Code Sec. 6212

IRS spotlights cp-2000 letters. FS-2018-11, (IRS), 2018-05-23

https://www.irs.gov/newsroom/irs-explains-cp-2000-letters-sent-to-taxpayers-when-tax-return-information-doesnt-match-information-from-3rd-parties

Code Sec. 6103

IRS introduces new tax transcript format. IR-2018-171, (IRS), 2018-08-22

https://www.irs.gov/newsroom/irs-to-introduce-new-tax-transcript-to-better-protect-taxpayer-data

IRS introduces new tax transcript format for data security. FS-2018-16, (IRS), 2018-09-20

https://www.irs.gov/newsroom/coming-soon-a-new-tax-transcript-to-better-protect-taxpayer-data

Code Sec. 6081

New mailing address for paper forms 8809. Form 8809, (IRS), 2018-01-08

https://www.irs.gov/forms-pubs/form-8809-application-for-extension-of-time-to-file-information-returns

Code Sec. 6015

Individual entitled to innocent spouse relief. Bishop v. CIR, T.C. Summary Opinion 2018-1, (USTC), 2018-01-04

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11530

Divorcee entitled to equitable relief from ex-husband’s tax liability. Minton v. CIR, T.C. Memo. 2018-15, (USTC), 2018-02-05

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11557

Individual entitled to equitable relief from ex-spouse’s tax liability. Heedram v. CIR, TC Memo. 2018-25, (USTC), 2018-03-07

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11580

Individual entitled to relief from joint and several liability only for one year. Jacobsen v. CIR, T.C. Memo. 2018-115, (USTC), 2018-07-25

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11711

Individual entitled to innocent spouse relief. Neitzer v. CIR, TC Memo. 2018-156, (USTC), 2018-09-19

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11773

Individual entitled to innocent spouse relief; had no knowledge of omitted income. Merlo v. CIR, T.C. Summary Opinion 2018-47, (USTC), 2018-09-24

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11780

Code Sec. 6012

IRS changes compliance assurance process program. IR-2018-174, (IRS), 2018-08-27

https://www.irs.gov/newsroom/irs-announces-adjustments-to-the-compliance-assurance-process-cap-program

Code Sec. 6011

IRS explains identity theft victim assistance process. FS-2018-6, (IRS), 2018-04-04

https://www.irs.gov/newsroom/when-to-file-a-form-14039-identity-theft-affidavit

Proposed regulations modify electronic filing requirement for information returns. NPRM REG-102951-16, IRB 2018-25, (IRS), 2018-06-18

https://www.irs.gov/irb/2018-25_IRB#REG-102951-16

Code Sec. 6001

Including donor information on returns to end for many exempt organizations. Rev. Proc. 2018-38, (IRS), 2018-07-17

https://www.irs.gov/pub/irs-drop/rp-18-38.pdf

Code Sec. 5701

Tobacco manufactured on trust land subject to excise taxes. U.S. v. King Mountain Tobacco Co., Inc., Nos. 14-36055 and 16-35607, (9th Cir.), 2018-08-13

http://cdn.ca9.uscourts.gov/datastore/opinions/2018/08/13/14-36055.pdf

Code Sec. 5000A

Guidance issued for section 5000a on computing affordability exemption for individuals with no available marketplace bronze-level plan. Notice 2017-74 2017-12-07, (IRS), 2017-12-07

https://www.irs.gov/pub/irs-drop/n-17-74.pdf

Code Sec. 4968

IRS plans for proposed regulations under code sec. 4968. Notice 2018-55, (IRS), 2018-06-08

https://www.irs.gov/pub/irs-drop/n-18-55.pdf

Code Sec. 3401

Teaching hospital’s indemnification claims against IRS upheld. New York and Presbyterian Hospital, No. 2017-1180, (CA-FC), 2018-01-31

http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/17-1180.Opinion.1-30-2018.1.PDF

Property manager was employee of apartment-complex employer, not independent contractor. Hampton Software Development, LLC v. CIR, T.C. Memo. 2018-87, (USTC), 2018-06-19

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11667

Code Sec. 2032A

Rates used in computing special use value issued. Rev. Rul. 2018-22, (IRS), 2018-08-20

https://www.irs.gov/irb/2018-34_IRB#RR-2018-22

Code Sec. 1446

Tax court had jurisdiction to determine partnership withholding tax liabilities. Ya Global Investments, LP v. CIR, 151 T.C. No. 2, (USTC), 2018-08-08

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11723

Code Sec. 1400Z-1

IRS lists population census tracts designated as qualified opportunity zones. Notice 2018-48, (IRS), 2018-06-20

https://www.irs.gov/pub/irs-drop/n-18-48.pdf

Code Sec. 1231

Forfeited deposit from terminated property sale was ordinary income. Cri-Leslie, LLC v. CIR, No. 16-17424, (11th Cir.), 2018-02-15

https://caselaw.findlaw.com/us-11th-circuit/1889440.html

Code Sec. 1061

New three-year holding period for certain carried interests applies to s corps partners. IR-2018-37, (IRS), 2018-03-01

https://www.irs.gov/newsroom/irs-plans-to-issue-regulations-clarifying-limitations-on-carried-interest

Code Sec. 1001

Modifications to VPFCS resulted in constructive sales of collateralized shares; tax court’s decision reversed and remanded. McKelvey Est. v. CIR, No. 17-2554, (2d Cir.), 2018-09-26

https://law.justia.com/cases/federal/appellate-courts/ca2/17-2554/17-2554-2018-09-26.html

Code Sec. 965

Preliminary guidance issued for transition tax computation. Notice 2018-7, (IRS), 2017-12-29

https://www.irs.gov/pub/irs-drop/n-18-07.pdf

Additional foreign earnings transition tax guidance issued. IR-2018-9, (IRS), 2018-01-17

https://www.irs.gov/newsroom/irs-issues-additional-guidance-on-transition-tax-on-foreign-earnings

IRS issues guidance on code sec. 965 transition tax filing and payment requirements. IR-2018-53, (IRS), 2018-03-13

https://www.irs.gov/newsroom/irs-provides-additional-details-on-section-965-transition-tax-deadlines-approach-for-some-2017-filers

Additional guidance on foreign earnings transition tax issued. IR-2018-79, (IRS), 2018-04-02

https://www.irs.gov/newsroom/irs-issues-additional-guidance-on-transition-tax-on-foreign-earnings-0

FAQS provide penalty and filing relief for taxpayers subject to code sec. 965 transition tax. IR-2018-131, (IRS), 2018-06-04

https://www.irs.gov/newsroom/irs-offers-penalty-filing-relief-to-many-subject-to-new-transition-tax-on-foreign-earnings

Legal basis offered for denying refund for transition tax installment payment. PMTA 2018-16, (IRS), 2018-08-02

https://www.irs.gov/pub/lanoa/pmta_2018_16.pdf

Code Sec. 956

Definition of U.S. property exception modified. Notice 2018-46, (IRS), 2018-05-04

https://www.irs.gov/pub/irs-drop/n-18-46.pdf

Code Sec. 951

Cfcs’ applicable earnings includible income. SIH Partners LLLP v. CIR, 150 T.C. No. 3, (USTC), 2018-01-18

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11532

Regulated investment companies excise tax relief provided. Rev. Proc. 2018-47, (IRS), 2018-09-06

https://www.irs.gov/irb/2018-39_IRB#RP-2018-47

Proposed regulations provide guidance on GILTI inclusion. NPRM REG-104390-18; IR-2018-186, (IRS), 2018-09-13

https://www.irs.gov/newsroom/irs-issues-proposed-regulations-on-global-intangible-low-taxed-income-for-us-shareholders

Code Sec. 911

IRS corrects excludable or deductible foreign housing expenses for 2018. Notice 2018-44, (IRS), 2018-04-23

https://www.irs.gov/pub/irs-drop/n-18-44.pdf

IRS releases excludable or deductible foreign housing expenses for 2018. Notice 2018-33, (IRS), 2018-04-23

https://www.irs.gov/pub/irs-drop/n-18-33.pdf

Combat-zone workers with U.S. abode now eligible for foreign earned income exclusion. IR-2018-173, (IRS), 2018-08-24

https://www.irs.gov/newsroom/new-law-makes-clear-combat-zone-contract-workers-qualify-for-foreign-earned-income-exclusion

U.S. citizen working abroad for state department could not exclude foreign earned income. O’Kagu v. CIR, 151 T.C. No. 6, (USTC), 2018-09-18

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11767

Code Sec. 707

IRS issues proposed regulations regarding allocation of partnership liabilities for disguised sale purposes. NPRM REG-131186-17, (IRS), 2018-06-19

https://www.federalregister.gov/documents/2018/06/19/2018-13129/proposed-removal-of-temporary-regulations-on-a-partners-share-of-a-partnership-liability-for

Code Sec. 704

IRS supplements proposed regulations implementing the centralized partnership audit regime. NPRM REG-118067-17, (IRS), 2018-08-17

https://www.federalregister.gov/documents/2018/08/17/2018-17614/centralized-partnership-audit-regime

Code Sec. 529A

Regulations to be issued on recent changes affecting able accounts. Notice 2018-62, (IRS), 2018-08-03

https://www.irs.gov/pub/irs-drop/n-18-62.pdf

Code Sec. 512

Interim guidance provided for exempt organizations with multiple unrelated businesses. Notice 2018-67, (IRS), 2018-08-21

https://www.irs.gov/pub/irs-drop/n-18-67.pdf

Code Sec. 511

Teaching hospital liable for UBIT on income from debt collection services and group purchasing programs. New Jersey Council of Teaching Hospitals v. CIR, 149 T.C. No. 22, (USTC), 2017-12-20

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11521

Code Sec. 501

Exempt status determination letter application and issuance procedures updated. Rev. Proc. 2018-5, (IRS), 2018-01-02

https://www.irs.gov/irb/2018-01_IRB#RP-2018-1

IRS issued new form for social welfare organization applications. Rev. Proc. 2018-10, (IRS), 2018-01-24

https://www.irs.gov/pub/irs-drop/rp-18-10.pdf

IRS corrects guidance on when restructuring no longer requires new exempt status applications. Rev. Proc. 2018-15, (IRS), 2018-02-22

https://www.irs.gov/pub/irs-drop/rp-18-15.pdf

Entity’s tax-exempt status revoked. Association for Honest Attorneys v. CIR, T.C. Memo. 2018-41, (USTC), 2018-04-03

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11614

Code Sec. 501(c)(3)

IRS revises form 1023-ez. Form 1023-EZ Revisions, (IRS), 2018-01-17

https://www.irs.gov/charities-non-profits/form-1023-ez-revisions

Code Sec. 482

Taxes paid by multinational beverage company’s subsidiary were compulsory. Coca Cola Company and Subsidiaries, 149 T.C. No. 22, (USTC), 2017-12-20

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11521

LB&I directive provides transfer pricing guidance for new examinations related to SBC. LB&I-04-0118-005, (IRS), 2018-01-12

https://www.irs.gov/businesses/corporations/instructions-for-examiners-on-transfer-pricing-selection-cost-sharing-arrangement-stock-based-compensation

LB&I directive provides transfer pricing guidance for subsequent PCT contribution to existing CSA. LB&I-04-0118-004, (IRS), 2018-01-30

https://www.irs.gov/businesses/corporations/instructions-for-lbi-on-transfer-pricing-selection-and-scope-of-analysis-best-method-selection

Code Sec. 481

Six-year spread applies to 481(a) adjustments after terminated s corporation’s accounting method change. Rev. Proc. 2018-44, (IRS), 2018-08-22

https://www.irs.gov/irb/2018-37_IRB#RP-2018-44

Code Sec. 469

Married couple’s rental real estate loss was not subject to passive activity loss limitations. Birdsong v. CIR, T.C. Memo. 2018-148, (USTC), 2018-09-10

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11756

Code Sec. 448

Small businesses get automatic consent for accounting method change. IR-2018-160, (IRS), 2018-08-03

https://www.irs.gov/newsroom/irs-issues-guidance-on-small-business-accounting-method-changes-under-tax-cuts-and-jobs-act

Code Sec. 446

Transitional guidance provided on deferral of advance payments; comments requested. Notice 2018-35, (IRS), 2018-04-12

https://www.irs.gov/pub/irs-drop/n-18-35.pdf

Customer contract revenue recognition accounting method change provided. Rev. Proc. 2018-29, (IRS), 2018-05-09

https://www.irs.gov/pub/irs-drop/rp-18-29.pdf

Customer contract revenue recognition accounting method change modified. Rev. Proc. 2018-49, (IRS), 2018-09-19

https://www.irs.gov/pub/irs-drop/rp-18-49.pdf

Code Sec. 408

Individual required to include IRA distributions in gross income. Kirkpatrick v. CIR, T.C. Memo. 2018-20, (USTC), 2018-02-22

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11578

IRA payments to state’s unclaimed property fund subject to tax withholding and reporting requirements. Rev. Rul. 2018-17, (IRS), 2018-05-29

https://www.irs.gov/pub/irs-drop/rr-18-17.pdf

Code Sec. 408A

Taxpayers’ made excess Roth IRA contributions; excise tax imposed. Mazzei v. CIR, 150 T.C. No. 7, (USTC), 2018-03-05

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11598

Code Sec. 402

IRS updates 402(f) notice safe harbor language. Notice 2018-74, (IRS), 2018-09-18

https://www.irs.gov/pub/irs-drop/n-18-74.pdf

Code Sec. 401

Retroactive revocation of FDL amounted to abuse of discretion. Val Lanes Recreation Center Corporation v. CIR, T.C. Memo. 2018-92, (USTC), 2018-06-26

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11686

Plans can use forfeitures to fund future qualified matching or nonelective contributions. T.D. 9835, (IRS), 2018-08-13

https://www.irs.gov/irb/2018-33_IRB#TD-9835

Deadline extended for pre-approved plan opinion letter procedures. Rev. Proc. 2018-42, (IRS), 2018-08-15

https://www.irs.gov/pub/irs-drop/rp-18-42.pdf

Nondiscrimination relief for closed defined benefit plans extended. Notice 2018-69, (IRS), 2018-08-18

https://www.irs.gov/pub/irs-drop/n-18-69.pdf

Code Sec. 385

IRS proposes to remove section 385 documentation regulations. NPRM REG-130244-17, (IRS), 2018-09-24

https://www.federalregister.gov/documents/2018/09/24/2018-20652/proposed-removal-of-section-385-documentation-regulations

Code Sec. 382

Safe harbors for determining built-in gain, loss for corporate ownership changes modified. Notice 2018-30, (IRS), 2018-05-08

https://www.irs.gov/pub/irs-drop/n-18-30.pdf

Code Sec. 337

Final regulations bar corporate partners from using transaction to avoid gain. T.D. 9833, (IRS), 2018-06-04

https://www.gpo.gov/fdsys/pkg/FR-2018-06-08/pdf/2018-12407.pdf

Code Sec. 280A

IRS spotlights renting residential property. FS-2018-14, (IRS), 2018-08-14

https://www.irs.gov/newsroom/know-the-tax-facts-about-renting-out-residential-property

Code Sec. 280E

IRS had authority to disallow medical marijuana dispensary’s business expense deductions. Alpenglow Botanicals, LLC, No. 17-1223, (10th Cir.), 2018-07-03

https://www.ca10.uscourts.gov/opinions/17/17-1223.pdf

Code Sec. 263A

Property was held as capital asset; penalties imposed. Keefe v. CIR, T.C. Memo. 2018-28, (USTC), 2018-03-15

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11581

Code Sec. 139F

Wrongfully incarcerated taxpayers have until December 17 to claim exclusion. IR-2018-60, (IRS), 2018-03-16

https://www.irs.gov/newsroom/additional-time-to-make-refund-claims-for-wrongful-incarceration-exclusion-file-back-year-claims-by-dec-17-2018-at-special-address

Code Sec. 223

2018 inflation adjusted limit for HDHP family coverage deduction changed back to $6,900. IR-2018-107, (IRS), 2018-04-26

https://www.irs.gov/newsroom/irs-grants-relief-for-taxpayers-affected-by-reduction-of-maximum-deductible-health-savings-account-contributions

2019 inflation adjustments for health savings accounts released. Rev. Proc. 2018-30, (IRS), 2018-05-09

https://www.irs.gov/pub/irs-drop/rp-18-30.pdf

Code Sec. 199-a

IRS releases proposed regs and rev. proc for 199a pass-through deduction. NPRM REG-107892-18; Notice 2018-64; IR-2018-162; TDNR SM-0456; FAQs, (IRS), 2018-08-08

https://www.irs.gov/newsroom/irs-issues-proposed-regulations-on-new-20-percent-deduction-for-passthrough-businesses

Code Sec. 170

Procedures regarding charitable deductions and exempt status combined and updated. Rev. Proc. 2018-32, (IRS), 2018-05-16

https://www.irs.gov/pub/irs-drop/rp-18-32.pdf

Final regulations provided for substantiating and reporting charitable contributions. T.D. 9836, (IRS), 2018-08-13

https://www.irs.gov/irb/2018-33_IRB#TD-9836

Proposed regs limit charitable contributions made to avoid salt deduction limit. NPRM REG-112176-18, (IRS), 2018-08-27

https://www.federalregister.gov/documents/2018/08/27/2018-18377/contributions-in-exchange-for-state-or-local-tax-credits

Façade easement charitable contribution deduction denied. Harbor Lofts Associates v. CIR, 151 T.C. No. 3, (USTC), 2018-08-27

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11738

Certain payments under tax credit programs deductible as business expenses. IR-2018-178, (IRS), 2019-09-05

https://www.irs.gov/newsroom/clarification-for-business-taxpayers-payments-under-state-or-local-tax-credit-programs-may-be-deductible-as-business-expenses

Code Sec. 170(f)(3)(B)(iii)

IRS updates audit techniques guide for conservation easements. Conservation Easement Audit Techniques Guide, (IRS), 2018-01-24

https://www.irs.gov/pub/irs-utl/conservation_easement.pdf

Code Sec. 168

Fact sheet on new rules and limitations for depreciation and expensing under TJCA released. FS-2018-9, (IRS), 2010-04-23

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

Code Sec. 168(k)

Proposed rules address 100-percent depreciation deduction. NPRM REG-104397-18; IR-2018-159; TDNR SM-0455, (IRS), 2018-08-03

https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-new-100-percent-depreciation

Code Sec. 167

Unsubstantiated deductions disallowed; penalties proper. Main v. CIR, No. 17-71070, (9th Cir.), 2018-04-17

https://law.justia.com/cases/federal/appellate-courts/ca9/17-71070/17-71070-2018-04-17.html

Code Sec. 166

Inventor’s royalties not entitled to capital gain treatment. Cooper v. Commissioner, No. 15-70863, (9th Cir.), 2017-12-15

http://cdn.ca9.uscourts.gov/datastore/opinions/2017/12/15/15-70863.pdf

Deduction disallowed as debt did not become worthless; penalty upheld. Hatcher v. CIR, 17-60318, (5th Cir.), 2018-04-09

https://law.justia.com/cases/federal/appellate-courts/ca5/17-60318/17-60318-2018-04-09.html

Code Sec. 165

Safe harbor casualty loss procedure for residences with deteriorating concrete foundations modified. IR-2017-208, (IRS), 2018-02-07

https://www.irs.gov/pub/irs-drop/rp-18-14.pdf

Short sale and debt forgiveness are one transaction–no gain or loss when amount realized falls between gain basis and loss basis. Simonsen v. CIR, 150 T.C. No. 8, (USTC), 2018-03-14

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11586

Code Sec. 164

Prepaid real property taxes may be deductible. IR-2017-210, (IRS), 2017-12-27

https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017

Code Sec. 163

Home equity loan interest still deductible under new law. IR-2018-32, (IRS), 2018-02-11

https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law

IRS outlines guidance for business interest deduction under code sec. 163(j). IR-2018-82, (IRS), 2018-04-02

https://www.irs.gov/newsroom/irs-issues-guidance-on-business-interest-expense-limitations

Individual not equitable owner; mortgage interest deduction denied. Frankel v. CIR, T.C. Summary Opinion 2018-45, (USTC), 2018-09-19

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11774

Code Sec. 162

LLC carried on trade or business of providing investment advice. Lender Management, LLC v. CIR,T.C. Memo. 2017-246, (USTC), 2017-12-13

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11513

0, IRS provides transitional guidance for code sec. 6050x reporting requirements. Notice 2018-23, (IRS), 2018-03-27

https://www.irs.gov/pub/irs-drop/n-18-23.pdf

Attorney denied car and truck expense deduction; negligence penalty imposed. Velez v. CIR, T.C. Memo. 2018-46, (USTC), 2018-04-05

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11622

IRS provides luxury auto depreciation caps and lease inclusion tables for 2018. Rev. Proc. 2018-25, (IRS), 2018-04-17

https://www.irs.gov/pub/irs-drop/rp-18-25.pdf

Married couple denied business expense deductions; penalties imposed. Samadi v. IRC, T.C. Summary Opinion 2018-27, (USTC), 2018-05-24

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11655

Medical marijuana business could not deduct wages not attributable to cogs. Loughman v. CIR, T.C. Memo. 2018-85, (USTC), 2018-06-18

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11681

IRS provides guidance on what constitutes a covered employee under code sec. 162. Notice 2018-68, (IRS), 2018-08-21

https://www.irs.gov/pub/irs-drop/n-18-68.pdf

2018-2019 special per diem rates released. Notice 2018-77, (IRS), 2018-09-26

https://www.irs.gov/pub/irs-drop/n-18-77.pdf

Code Sec. 152

Qualifying relative definition still uses inflation adjusted exemption amount. Notice 2018-70, (IRS), 2018-08-28

https://www.irs.gov/pub/irs-drop/n-18-70.pdf

Code Sec. 132

Moving expense reimbursements incurred prior to 2018 are excluded from employee wages. Notice 2018-75, (IRS), 2018-09-21

https://www.irs.gov/pub/irs-drop/n-18-75.pdf

Code Sec. 107

IRS enjoined from enforcing ministerial housing allowance exclusion. Gaylor v. Mnuchin, 16-cv-215-bbc, (DC W.D.Wis.), 2017-12-13

https://scholar.google.com/scholar_case?case=4179032178086642774&hl=en&as_sdt=6&as_vis=1&oi=scholarr

Code Sec. 104

Veterans urged to file form 1040x to claim refund for overpayments attributable to disability severance payment. IR-2018-148, (IRS), 2018-07-11

https://www.irs.gov/newsroom/veterans-owed-refunds-for-overpayments-attributable-to-disability-severance-payments-should-file-amended-returns-to-claim-tax-refunds

Code Sec. 67

IRS clarifies estate and non-grantor trust expenses not subject to miscellaneous itemized deduction suspension. Notice 2018-61, (IRS), 2018-07-31

https://www.irs.gov/pub/irs-drop/n-18-61.pdf

Code Sec. 61

2018 standard mileage rates released. IR-2017-204, (IRS), 2017-12-14

https://www.irs.gov/newsroom/standard-mileage-rates-for-2018-up-from-rates-for-2017

Income from gravel mined on common tribal land taxable. Perkins v. CIR, 150 T.C. No. 6, (USTC), 2018-03-01

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11595

Virtual currency transactions reportable. IR-2018-71, (IRS), 2018-03-23

https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions

2018 dollar amounts for qualified and cash method debt instruments released. IR-2018-52, (IRS), 2018-04-11

https://www.irs.gov/pub/irs-drop/rr-18-11.pdf

Applicable terminal charge and SIFL rates for determining value of noncommercial flights on employer-provided aircraft issued. Rev. Rul. 2018-10, (IRS), 2018-04-16

https://www.irs.gov/irb/2018-16_IRB#RR-2018-10

Change of accounting method procedures updated. Rev. Proc. 2018-31, (IRS), 2018-05-09

https://www.irs.gov/pub/irs-drop/rp-18-31.pdf

2018 standard mileage rates updated to reflect elimination of miscellaneous itemized deductions. IR-2018-127, (IRS), 2018-05-25

https://www.irs.gov/newsroom/law-change-affects-moving-mileage-and-travel-expenses

Indian tribe member properly liable for tax on tribal distributions; income derived from gaming business. U.S. v. Jim, No. 16-17109, (11th Cir.), 2018-06-04

https://www.leagle.com/decision/infco20180604039

Loan discharge relief available for taxpayers who took out private student loans. Rev. Proc. 2018-39, (IRS), 2018-07-30

https://www.irs.gov/pub/irs-drop/rp-18-39.pdf

Modified safe harbor provides new deduction computation. Notice 2018-63, (IRS), 2018-08-03

https://www.irs.gov/pub/irs-drop/n-18-63.pdf

Taxpayer’s reimbursement of mortgage overpayment not includible in gross income. Park v. CIR, T.C. Summary Opinion 2018-46, (USTC), 2018-09-24

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11777

Code Sec. 48

IRS provides guidance on determining when construction has begun on energy property for purposes of the energy credit. Notice 2018-59, (IRS), 2018-06-22

https://www.irs.gov/pub/irs-drop/n-18-59.pdf

Sale of new business was applicable asset acquisition, included goodwill; trial court improperly excluded “socialist” expert’s evidence. Alta Wind v. United States, No. 17-1410, (Fed. Cir), 2018-07-27

https://law.justia.com/cases/federal/appellate-courts/cafc/17-1410/17-1410-2018-07-27.html

Code Sec. 45B

S corporation could not revoke FICA tax election solely on request of shareholder. Caselli v. CIR, T.C. Memo. 2018-81, (USTC), 2018-06-12

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11674

Code Sec. 45R

Employers without shop marketplace plans receive health insurance credit relief; Hawaii employers denied credit. Notice 2018-27, IR-2018-108, (IRS), 2018-04-27

https://www.irs.gov/pub/irs-drop/n-18-27.pdf

Code Sec. 45S

Comprehensive guidance on paid family and medical leave credit allows retroactive written policies. Notice 2018-71, (IRS), 2018-09-24

https://www.irs.gov/pub/irs-drop/n-18-71.pdf

Code Sec. 42(h)

2018 inflation adjustment amounts modified. Rev. Proc. 2018-22, (IRS), 2018-04-13

https://www.irs.gov/pub/irs-drop/rp-18-22.pdf

Code Sec. 36B

Individual’s tax liability increased by amount of disallowed credit. Keel v. CIR, T.C. Memo. 2018-5, (USTC), 2018-01-16

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11539

Married couple not entitled to advanced premium tax credit. Grant v. CIR, T.C. Memo. 2018-119, (USTC), 2018-08-01

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11719

Married couple’s tax liability increased by amount of disallowed credit. Palafox v. CIR,T.C. Memo. 2018-124, (USTC), 2018-08-07

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11727

Taxpayer not entitled to premium tax credit. Gartlan v. CIR, T.C. Summary Opinion 2018-42, (USTC), 2018-09-11

https://www.ustaxcourt.gov/ustcinop/OpinionViewer.aspx?ID=11759

TE/GE issues memo on relief from retroactivity and form 1023-ez; TAS memo provides guidance on advocating for taxpayers with modules assigned to PCA; wage and income transcript availability procedure updated

TE/GE issues memo on relief from retroactivity and form 1023-ez; TAS memo provides guidance on advocating for taxpayers with modules assigned to PCA; wage and income transcript availability procedure updated
LINK TO ITEM
Code Sec. 7805(b)
TEGE-04-0118-0001
(IRS)
2018-01-05