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Lynn Nichols delivers the update for the prior week. Please see www.ficpa.org/cpe for all of your CPE needs. This week’s podcast covers the following:
- Guidance on Effect of Discharge of Partnership's Excess Nonrecourse Debt - (Rev. Rul. 2012-14; 2012-24 IRB 1; 5/25/2012)
The IRS has issued guidance providing that for purposes of measuring a partner's insolvency under section 108(d)(3), each partner treats as a liability an amount of the partnership's discharged excess nonrecourse debt that is based on the allocation of cancellation of debt income to the partner under section 704(b) and the regulations.
- District Court Grants Summary Judgment to State Employees Challenging DOMA’s Application to Long-Term Care Tax Law - (Michael Dragovich et al. v. Dept. of Treasury et al.; USDC N CA; No. 4:10-cv-01564; 5/24/2012)
A U.S. district court granted summary judgment to a group of California public employees with registered domestic partners who challenged the constitutionality of the Defense of Marriage Act and section 7702B(f), which provides favorable tax treatment to participants in qualified state-maintained long-term care insurance plans for state employees.
First Circuit Rules DOMA Unconstitutional - (Commonwealth of Massachusetts v. U.S. Dept. of Health and Human Services; CA 1; Nos. 10-2204, 10-2207, 10-221; 5/31/2012)
The First Circuit, in consolidated appeals, affirmed a district court's holding that section 3 of the Defense of Marriage Act violates the equal protection clause of the Constitution by denying federal tax and other benefits to same-sex couples and surviving same-sex spouses who were lawfully married in Massachusetts.
- Proposed Section 83 Regs - Property Transferred for Services - (REG-141075-09; 77 F.R. 31783-31786; 5/30/2012)
The IRS has published proposed regulations that clarify a substantial risk of forfeiture for purposes of determining the amount includable in gross income when property is transferred in connection with the performance of services under section 83.
- Interim Guidance on Analyzing Taxpayer's Financial Condition for Ability to Pay - (SBSE-05-0512-047; 5/24/2012)
The IRS Small Business/Self-Employed Division has issued interim guidance on analyzing income and expenses to determine a taxpayer's ability to pay, clarifying when to allow payments for student loans and revising the procedures for allowing payments on delinquent state and local income tax liabilities.
- Financial Accounting Foundation Releases Plan for Private Company Council - (Tax Notes Today; 5/31/2012; Article by Thomas Jaworski)
The Financial Accounting Foundation (FAF) on May 30 issued its final report on a new council established to advise standard setters on behalf of private companies and consider accounting exceptions required for private companies and the users of their financial statements.
- Charitable Contribution Deductions Denied for Lack of Qualified Appraisal - (Joseph Mohamed Sr. et ux. v .Commissioner; T.C. Memo. 2012-152; 5/29/2012)
The Tax Court upheld the IRS's denial of a couple's charitable contribution deductions for property they donated to a charitable remainder unitrust, finding that appraisals by the husband, a real estate broker and appraiser, did not satisfy the regulatory requirement for them to obtain and attach a qualified appraisal.
LAST UPDATED 6/4/2012