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This podcast is delivered by Lynn Nichols of Nichols Patrick CPE. It was a busy week in the fed tax area. One of the more important issues addressed was health care guidance. You can find out more about health care on the FICPA’s upcoming webinar, The Next Chapter: Status of Health Care Reform After the Election. The podcast covers the following topics:
[Doc numbers are citations to subject documents in Tax Analysts’ Tax Notes Today, the tax professional’s source of information and commentary on current federal tax developments.]
- IRS Healthcare Guidance to Come in “Waves”
(Tax Analysts, Tax Notes Today; 10/23/2012; Article by Jeremiah Coder)
Treasury and the IRS intend to release guidance in waves for the tax portions of the 2010 healthcare reform law, hoping to finalize rules before some parts of the law go into effect, according to Lisa Zarlenga, Treasury tax legislative counsel.
- Time to Renew PTINs for 2013
The IRS has reminded tax return preparers that they must renew their preparer tax identification numbers for 2013 and has urged return preparers who have a competency test requirement to schedule an appointment for the exam.
- Value of Easement Contribution Determined, Penalty Upheld
(Whitehouse Hotel Limited Partnership v. Commissioner; 139 T.C. No. 13; 10/23/2012)
The Tax Court, hearing a case on remand from the Fifth Circuit, determined that a partnership's facade easement donation was overstated on its tax return based on a comparable sales approach, and held that the partnership was liable for a gross valuation misstatement penalty.
- Bank Trustee Wasn't Employee of Bank, Liable for Self-Employment Taxes
(Richard E. Blodgett et ux. v. Comm.; T.C. Memo. 2012-298; 10/24/2012)
The Tax Court held that an individual who served as a trustee for a bank wasn't an employee of the bank and held him liable for an income tax deficiency for failing to pay self-employment taxes on income he received from the bank for his trustee services.
- Ninth Circuit Affirms Denial of Bad Debt Deductions
(John C. Ramig v. Commissioner; CA 9; No. 11-73898; 10/24/2012)
The Ninth Circuit, in an unpublished opinion, affirmed a Tax Court decision that denied a couple's bad debt deductions for advances made to a company and payments made on the company's behalf, finding that the Tax Court's conclusion that there was no bona fide debt wasn't clearly erroneous.
- Taxpayer Advocate’s Interim Guidance on Case-Acceptance Criteria
National Taxpayer Advocate Nina Olson has reissued interim guidance on changes to the Taxpayer Advocate Service's case-acceptance criteria.
- Conservation Easement Donation Met Deduction Requirements
(Charles R. Irby et ux. et al. v. Commissioner; 139 T.C. No. 14; 10/25/2012)
The Tax Court, in a case involving the disallowance of charitable contribution deductions, held that conservation easements granted to an organization by an LLC in a bargain sale were protected in perpetuity, that the LLC obtained a qualified appraisal, and that the LLC also obtained contemporaneous written acknowledgment of the transaction.
- Second Circuit Affirms Liability for Deficiency, Accuracy-Related Penalty
(Henricus C. Van der Lee et ux. v. Commissioner; CA 2; No. 12-226; 10/25/2012)
The Second Circuit affirmed a Tax Court decision that held a couple liable for a deficiency and accuracy-related penalty, finding that the husband was an investor in securities rather than a trader, that they didn't adequately substantiate business and charitable contribution deductions, and that their underpayment was due to negligence.
- Individual's Track Coaching Activity Had Profit Motive
(John Dalton Parks III v. Commissioner; T.C. Summ. Op. 2012-105; 10/25/2012)
The Tax Court, in a summary opinion, held that an individual was engaged in a private track and field coaching activity for profit and that his deductions aren't limited by section 183 and, thus, the individual is entitled to deduct the resulting losses from gross income.
- Alimony Deduction Denied
(Gary Wayne Doolittle v. Comm.; T.C. Summ. Op. 2012-103; 10.25/2012)
The Tax Court held that a taxpayer was not entitled to a claimed deduction for alimony paid under a spousal maintenance contract and is liable for the section 6662(a) accuracy-related penalty, finding that the payments made by the taxpayer were nondeductible child support rather than deductible alimony.
LAST UPDATED 10/29/2012