Federal Tax Update - Aug. 26, 2013

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Lynn Nichols from Nichols Patrick CPE delivers the weekly podcast on federal tax issues.  For all of your CPE needs, please go to www.ficpa.org/cpe.  This week’s podcast covers the following topics:


(‘Doc’ numbers are citations to the listed item in Tax Analysts’ Tax Notes Today. The author relies on, and recommends, Tax Notes Today and Tax Analysts’ Federal Research Library as essential tools for the tax professional.)

See more at www.taxanalysts.com

  1. IRS Launches Affordable Care Act Website
    (Tax Notes Today; August 19, 2013; Article by Eric Kroh)
    The IRS has launched a website for individuals and businesses devoted to the tax provisions of the Affordable Care Act, the agency announced August 16.
    [Doc 2013-19988]
  2. Late-Filed 1120S Wasn't Disclosure; 6 Year Statute of Limitations Applies
    (ILM 201333008; 8/16/2013)
    In a legal memorandum, the IRS said an S corporation return that showed underreported income and that was referenced in an individual's Form 1040 return but was not filed until three years after the Form 1040 was filed was not a disclosure for purposes of section 6501, resulting in the application of a six-year period of assessment.
    [Doc 2013-19899]
  3. Photo Processing Qualifies for Domestic Production Activity Deduction
    (FAA 20133302F; 8/16/2013)
    In field attorney advice, the IRS concluded that a pharmacy care provider's photo processing activities constitute the manufacturing, production, growth, or extraction of qualifying production property for purposes of section 199 but that putting a customer's photo or movie files onto photo CDs and movie DVDs is a service.
    [Doc 2013-19990]
  4. 40 Questions (and 40 Answers!) on the New 3.8 Percent Tax
    (Tax Notes Today; two articles by Richaed Dees; 8/13 and 8/20; 2013)
    Richard L. Dees discusses a broad range of issues related to the new 3.8 percent tax and its application to trusts and family businesses.
    [Doc 2013-16514; 8/13/2013; Doc 2013-18558; 8/20/2013]
  5. Transaction Lacked Economic Substance, Nontax Business Purpose
    (WFC Holdings Corp. v. United States; No. 11-3616
    The Eighth Circuit affirmed a district court decision that denied Wells Fargo a tax refund based on a capital loss it claimed for a lease restructuring transaction and stock transfer, holding that the corporation failed to show the transaction had objective economic substance or a subjective nontax business purpose.
    [Doc 2013-20276]
LAST UPDATED 8/26/2013