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Lynn Nichols of Nichols Patrick CPE delivers the podcast for the prior week. For all of your CPE needs, please go to www.ficpa.org/cpe. The podcast this week covers:
Supreme Court Says IRC Sec. 5000A, Individual Mandate, is a Tax
(National Federation of Independent Business et al. v. Sebelius et al.; No. 11-393; 6/28/2012)
The Supreme Court, finding that the Anti-Injunction Act didn't bar the suit, held that the individual mandate of the Patient Protection and Affordable Care Act is a tax and upheld it within Congress's power under the taxing clause; the Court did not uphold the mandate under the commerce clause or the necessary and proper clause.
Interim Changes to ITIN Application Requirements
The IRS has announced interim changes to strengthen its procedures for issuing individual taxpayer identification numbers, which are only issued to individuals who are ineligible to obtain Social Security numbers.
Guidance on New Requirements for Charitable Hospitals in Proposed Regs
(REG-130266-11; 77 F.R. 38147-38169; 6/26/2012)
The IRS has published proposed regulations that provide guidance on the new section 501(r) requirements for charitable hospital organizations relating to financial assistance and emergency medical care policies, charges for specified care provided to individuals eligible for financial assistance, and billing and collections.
Proposed Regs on Overall Foreign Loss Recapture on Property Dispositions
(REG-134935-11; 77 F.R. 37837-37838; 6/25/2012)
The IRS has published proposed regulations that provide guidance on the coordination of the rules for determining high-taxed income with capital gains adjustments and the allocation and recapture of overall foreign losses and overall domestic losses.
Decedent's IRA May Be Transferred Tax Free Into Widow's IRA
(LTR 201225020; 3/28/2012; rel. 6/26/2012)
The IRS ruled that a widow will be treated as having acquired her deceased spouse's IRA directly from the decedent and not the trust that the IRA assets passed through; the IRA won't be treated as inherited; and the widow may complete tax-free trustee-to-trustee transfers of her portion of the IRA into an IRA in her name.
Treatment of Dividends and Dividend Equivalents on Restricted Stock
(Rev. Rul. 2012-19; 2012-28 IRB 1; 6/25/2012)
The IRS has addressed whether dividends and dividend equivalents for restricted stock and restricted stock units that are performance-based compensation under section 162(m)(4)(C) must separately satisfy the section 162(m)(4)(C) requirements to be treated as performance-based compensation.
IRS Updates FAQ on Second Offshore Voluntary Disclosure Initiative
(Offshore Voluntary Disclosure Program Frequently Asked Questions and Answers; posted to www.irs.gov; 6/26/2012)
The IRS has updated a list of frequently asked questions on the 2011 offshore voluntary disclosure initiative, updating several questions to change the previously announced August 30, 2011, deadline to September 9, 2011; correcting the address in answer 24; and adding sections 24.1 and 25.1 on extension requests.
IRS Outlines New Procedure for Nonresident Taxpayers Filing Delinquent FBARs
(New Filing Compliance Procedures for Non-Resident U.S. Taxpayers; 6/26/2012)
The IRS has posted to its website the new procedure for nonresidents who have not filed U.S. income tax and information returns to file delinquent returns; taxpayers using the procedure, which is effective September 1, must file delinquent tax returns for the past three years and delinquent foreign bank account reports for the past six years.
IRS Failed to Comply With Requirements Regarding Lien Notices
(TIGTA 2012-30-057; 5/29/2012)
The IRS mailed notices of federal tax liens timely and correctly, as required, but "did not follow requirements to notify the taxpayers' representatives of the taxpayers' rights" related to the liens, over 80 percent of the time, according to a May 29 report from the Treasury Inspector General for Tax Administration.
AICPA’s OCBOA Reporting Framework to Be Based on Tax Basis Accounting
(Tax Notes Today; 6/29/2012; Article by Thomas Jaworski)
A financial reporting framework proposed by the American Institute of Certified Public Accountants will be based on income tax basis accounting and will not be subject to review by the Financial Accounting Standards Board.
LAST UPDATED 7/2/2012