We have written in the past about the Taxpayer Advocate Service (TAS), which is an independent organization within the Internal Revenue Service (IRS) whose job is to ensure that every taxpayer is treated fairly and knows and understands taxpayer rights. For the past 18 years, Nina Olson has been the National Taxpayer Advocate (NTA) – the leader of TAS. Ms. Olson has been instrumental in protecting taxpayer rights, through her Annual Report to Congress and in many other ways. Today, Ms. Olson announced that she is retiring from the position of NTA on July 31, 2019. She will be sorely missed, but we are hopeful that the transition will be smooth and TAS will be able to continue its important work for taxpayers.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 18 – 22, 2019.
February 19, 2019: The IRS issued a news release promoting online resources for answering taxpayer questions, in light of high call volume during the period following Presidents Day.
February 19, 2019: The IRS issued a news release reminding farmers and fishermen to file Form 1040 and remit all taxes owed by March 1, 2019, if they had elected to forgo making quarterly estimated tax payments.
February 19, 2019: The IRS acquiesced to the decision only in Jacobs v. Commissioner, 148 TC No. 24 (2017), dealing with whether the Boston Bruins’ pre-game meals at away game hotels were de minimis fringe benefits under section 132(e)(2) of the Code.
February 21, 2019: The IRS issued a news release urging taxpayers to file reports of large cash transactions electronically, in lieu of filing a paper Form 8300.
February 22, 2019: The IRS released final regulations amending compliance monitoring regulations for the low-income housing credit of section 42 of the Code.
February 22, 2019: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Le Chen in our DC office for this week’s roundup.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 11 – 15, 2019.
February 11, 2019: The IRS issued a news release promoting online resources for answering taxpayer questions, in anticipation of high call volume over the Presidents Day weekend.
February 12, 2019: The IRS issued a news release announcing the release of the National Taxpayer Advocate’s 2018 Annual Report to Congress, which reported on, among other things, the effect of the shutdown on IRS operations and the need to modernize the IRS’s IT systems.
February 12, 2019: The IRS issued a news release promoting its “Where’s My Refund?” online tool as a way for taxpayers to check on the status of their tax refunds.
February 13, 2019: The IRS released Revenue Procedure 2019-13, providing a safe harbor method of accounting for determining depreciation deductions for passenger automobiles that qualify for the 100% additional first-year depreciation deduction under section 168(k) of the Code, but that are also subject to depreciation limitations under section 280F of the Code.
February 13, 2019: The IRS issued a news release outlining various payment options available to taxpayers who owe additional tax after filing.
February 14, 2019: The IRS issued Notice 2019-16, providing baseline interest rates referenced in various provisions of the Code dealing with employee benefits.
February 14, 2019: The IRS issued a news release reminding taxpayers that they will be asked to verify their identities when calling the IRS for assistance.
February 15, 2019: The IRS released Revenue Ruling 2019-07, providing various prescribed rates for federal income tax purposes for March 2019.
February 15, 2019: The IRS issued a news release promoting online resources for obtaining prior-year tax records, in anticipation of high call volume over the Presidents Day weekend.
February 15, 2019: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Le Chen in our DC office for this week’s roundup.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of February 4 – 8, 2019.
February 4, 2019: The IRS released final instructions for Form 1065, US Return of Partnership Income, incorporating changes made by the Tax Cuts and Jobs Act.
February 5, 2019: The IRS issued a news release postponing certain tax deadlines for taxpayers affected by the earthquake that occurred in Alaska on November 30, 2018.
February 6, 2019: The IRS released final instructions for Form 1041, US Income Tax Return for Estates and Trusts, and supporting schedules, incorporating changes made by the Tax Cuts and Jobs Act.
February 6, 2019: The IRS released final instructions for Form 8991, dealing with the base erosion and anti-abuse tax (BEAT) of section 59A of the Code, enacted as part of the Tax Cuts and Jobs Act.
February 7, 2019: The IRS issued a news release providing guidance on identifying and avoiding unethical tax return preparers.
February 8, 2019: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Le Chen in our DC office for this week’s roundup.
Each New Year, many of us look back on the previous year’s activities, and determine what we want to accomplish in the coming year – lose weight, start exercising, read more tax articles, etc. The Internal Revenue Service (IRS) Large Business & International (LB&I) Division memorialized its New Year’s resolutions for 2019 in Publication 5319. So, for taxpayers with more than $10 million in assets, you may want listen up and see what the IRS has in store for 2019!
LB&I’s goals come during a time of significant reduction in workforce and increase in responsibilities. LB&I experienced a significant reduction in workforce between October 2017 and October 2018, reducing its workforce by a net of 344 employees (down from 4,868 to 4,524) spread across several positions. This included 18 individuals in leadership, 218 revenue agents and 25 tax examiners. With the exception of tax law specialists, which remained at 24, every other position saw a reduction in personnel. This reduction in personnel comes at critical point for LB&I, as it undoubtedly spent much of its time and resources last year working on guidance necessary to implement the substantial changes made by the Tax Cuts and Jobs Act enacted in late 2017. It will continue to be responsible for training and compliance related to those changes. (more…)
On March 2, 2018, President Trump nominated Michael Desmond to be the Chief Counsel of the Internal Revenue Service (IRS). Unfortunately, the Senate did not get around to confirming him. On January 16, 2019, President Trump renominated Mr. Desmond, and the US Senate Committee on Finance has scheduled a hearing for February 5th to consider his renomination.
The Chief Counsel is the top legal advisor to the IRS Commissioner on all matters pertaining to the interpretation, administration and enforcement of the Internal Revenue laws. The Chief Counsel also provides legal guidance and interpretive advice to the IRS, Treasury and to taxpayers. Mr. Desmond clerked for Judge Ronald S.W. Lew of the United States District Court for the Central District of California. From 1995 through 2000, he served as a trial attorney in the Tax Division at the Department of Justice, and from 2005 through 2008 he served as tax legislative counsel at the Department of the Treasury, Office of Tax Policy.
Mr. Desmond has a strong reputation in the tax community, and we hope that his nomination is acted on immediately.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 28 – February 1, 2019.
January 28, 2019: The IRS issued Revenue Ruling 2019-04, providing various prescribed rates for federal income tax purposes for February 2019.
January 28, 2019: The IRS issued a news release announcing the opening of the 2019 tax-filing season and providing information to taxpayers about filing and refunds.
January 29, 2019: The IRS issued a news release reminding employers about filing deadlines for wage statements and independent contractor forms.
January 30, 2019: The IRS issued Notice 2019-13, providing baseline interest rates referenced in various provisions of the Code dealing with employee benefits.
February 1, 2019: The IRS issued a corrected version of final regulations providing guidance on the deduction for qualified business income under section 199A of the Code, enacted as part of the Tax Cuts and Jobs Act.
February 1, 2019: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).
Special thanks to Le Chen in our DC office for this week’s roundup.
On January 29 and 30, 2019, the Internal Revenue Service’s Large Business and International (LB&I) division released new Practice Units on Permanent Establishments, which can be found here and here. Permanent Establishments create taxing nexus for foreign businesses doing business in the United States and for those who have “effectively connected income.” The Practice Units provide the IRS’s LB&I audit teams with a general guide on the tax concepts related to permanent establishments. The Practice Units provide examples of the analysis necessary to determine whether a foreign company has a permanent establishment, for example, as a result of its agent concluding contracts on its behalf in the United States. Additionally, the Practice Unit on treaty exemptions describes whether an activity has a preparatory or auxiliary character for purposes of determining whether a foreign enterprise has a US permanent establishment. LB&I auditors will use the Practice Units as tools to help analyze whether a US permanent establishment exists and an income tax adjustment is necessary.
Practice Point: If you have potential PE issues, it is a good idea to look at what your auditors are looking at. The Practice Units are helpful to understand the perspective of IRS auditors on these issues, the types of questions they are likely to ask and the information that they will request.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 21 – 25, 2019. Tax news is very limited because of the government shutdown:
January 22, 2019: The IRS issued a news release cancelling a public hearing on proposed regulations relating to user fees for enrolled agents and enrolled retirement plan agents, due to the partial federal government shutdown.
January 22, 2019: The IRS issued final instructions for Form 461, dealing with limitations on business losses under section 461(l) of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 22, 2019: The IRS issued final instructions for Form 965-A, dealing with individual taxpayers’ transition tax obligations under section 965 of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 22, 2019: The IRS issued final instructions for Form 965-B, dealing with corporations’ and REITs’ transition tax obligations under section 965 of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 23, 2019: The IRS issued final instructions for the 2018 version of Form 1065 Schedule D, dealing with reporting of capital gains and losses on partnership returns, to reflect changes made by the Tax Cuts and Jobs Act.
January 25, 2019: The IRS issued a news release reminding taxpayers to seek information regarding their eligibility for the earned income tax credit.
Special thanks to Le Chen in our DC office for this week’s roundup.
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of January 14 – 18, 2019.
January 15, 2019: The IRS issued final regulations implementing the transition tax under section 965 of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 15, 2019: The IRS released an updated contingency plan describing its actions and activities in light of the partial federal government shutdown.
January 16, 2019: The IRS released Notice 2019-11, providing a penalty waiver, under certain conditions, for an individual taxpayer’s underpayment of withholding and estimated income tax, in light of the major changes made by the Tax Cuts and Jobs Act.
January 18, 2019: The IRS issued final regulations providing guidance on the deduction for qualified business income under section 199A of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 18, 2019: The IRS released proposed regulations dealing with previously suspended losses and ownership interests in certain entities for purposes of calculating the deduction under section 199A of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 18, 2019: The IRS released Revenue Procedure 2019-11, providing methods for calculating W-2 wages for purposes of the deduction under section 199A of the Code, enacted as part of the Tax Cuts and Jobs Act.
January 18, 2019: The IRS released Notice 2019-07, proposing a safe harbor for rental real estate enterprises for purposes of the deduction under section 199A of the Code, enacted as part of the Tax Cuts and Jobs Act.
Special thanks to Le Chen in our DC office for this week’s roundup.
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