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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:
NICHOLS PATRICK WEEKLY TAX UPDATE
With E. Lynn Nichols, CPA
August 5, 2013
(‘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
- Transfers in Exchange for Self-Canceling Notes Are Taxable Gifts
(ILM 201330033; 7/26/2013)
(In a legal memorandum, the IRS concluded that a decedent made a taxable gift to the extent that the value of stock transferred by the decedent was greater than the value of notes received, adding that the notes were worth significantly less than their stated amount because it was unlikely the full amount of the notes would be paid.
[Doc 2013-18118 ]
- Final Regs on Reimbursed Entertainment Expenses
(T.D. 9625; 78 F.R. 46502-46504; 8/1/2013)
The IRS has published final regulations that explain how to apply the section 274(e) exception for deduction limitations on some expenditures paid or incurred under reimbursement or other expense allowance arrangements to multiple-party reimbursement arrangements.
[Doc 2013-18513 ]
- No Transfer of Goodwill in Radio Station Like-Kind Exchange
(Deseret Management Corp.; US Ct Fed Clms; No. 1:09-cv-00273
The Court of Federal Claims held that any amount of goodwill that was transferred in a like-kind exchange of radio stations was negligible or insignificant for purposes of section 1031; the court also held that a corporation failed to show that some assets were improperly treated as nonresidential buildings for depreciation purposes.
[Doc 2013-18673 ]
- Notices of Deficiencies Timely Due to Fraud, Omissions From Gross Income
(Laura R. Ames-Mechelke; T.C. Memo. 2013-176; 8/1/2013)
The Tax Court, sustaining penalties, held that notices of deficiency issued to a chiropractor who invested in a fraudulent trust tax avoidance scheme were timely for four tax years because the returns were fraudulent and there were omissions from gross income that extended the limitations period; the court denied her theft loss deduction claim.
[Doc 2013-18765 ]
- Mortgage, Credit Card, and Utility Payments Were Income to Minister
(Donald L. Rogers; T.C. Memo. 2013-177; 8/1/2013)
The Tax Court, stating that an accuracy-related penalty may apply, held that mortgage, credit card, and utility payments a minister received for services were unreported self-employment income, finding that he failed to show that the mortgage payments were excluded under section 107 or that he was exempt from self-employment income tax.
[Doc 2013-18767 ]
- Same-Sex Surviving Spouse Awarded Spousal Death Benefits
(Cozen O'Connor PC v. Jennifer J. Tobits et al.; No. 2:11-cv-00045
A U.S. district court, relying on the Supreme Court's decision in United States v. Windsor (2013), ordered in an interpleader action that a law firm's profit sharing ERISA-qualified plan pay death benefits to the surviving spouse of a same-sex couple that married in Canada.
[Doc 2013-18699 ]
- U.S. District Court Orders Recognition of Same-Sex Marriage in Ohio
(James Obergefell v. John Kasich; USDC S OH W Div; No. 1:13-cv-00501; 7/22/2013)
A U.S. district court, relying on the Supreme Court's decision in United States v. Windsor (2013), granted a temporary restraining order requiring the state of Ohio to recognize a couple's same-sex marriage performed in the state of Maryland by recording the marital status and surviving spouse on an individual's death certificate.
[Doc 2013-18698 ]
LAST UPDATED 8/5/2013