Federal Tax Update - March 25, 2013

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Lynn Nichols of Nichols Patrick CPE delivers the weekly tax podcast bringing you the latest federal tax information.  The FICPA brings you CPE in all possible formats – seminars, conferences, shows, on-demand, webinars, webcast, on-site.  For more information, please go to www.ficpa.org/cpe. The podcast this week covers the following:

  1. Federal Agency's Commissioners Are Employees for Tax Purposes
    (LTR 201311002; 12/6/2012; rel. 3/15/2013)
    The IRS ruled that six commissioners of an independent federal agency are employees for purposes of federal taxes, including FICA and federal income tax withholding, and that the agency must report the commissioners' mandatory compensation as taxable wage income on Forms W-2. [Doc 2013-6165]
  2. Distributions of Damages Are Excludable From Victims' Income
    (LTR 201311006; 12/11/2012; rel. 3/15/2013)
    The IRS ruled that any distributions of damages that a taxpayer makes to victims under a joint prosecution agreement are excludable from the victims' gross income under section 104(a)(2) and, thus, the taxpayer isn't required to report any distribution of damages under section 6041 or to withhold a portion of any distribution under section 1441. [Doc 2013-6169]
  3. IRS Publishes Final, Temporary Regs on Outbound Asset Transfers
    (T.D. 9614; 3/19/2013)
    The IRS has published final and temporary regulations that apply to transfers of property by a domestic corporation to a foreign corporation in some nonrecognition exchanges or to distributions of stock of foreign corporations by a domestic corporation in some nonrecognition distributions. [Doc 2013-6318]
  4. IRS Publishes Proposed Regs on Waiting Period for Health Insurance
    (REG-122706-12; 78 F.R. 17313-17336; 3/21/2013)
    The IRS, in conjunction with the departments of Labor and Health and Human Services, has published proposed regulations implementing the 90-day waiting period limitation for group health plans and group health insurance coverage. [Doc 2013-6402]
  5. IRS Announces Penalty Relief for Delayed 2012 Tax Forms
    (IR-2013-31; 3/20/2013)
    The IRS has announced late-payment penalty relief for individuals and businesses requesting a tax filing extension because they are attaching to their returns specified forms that couldn't be filed until after January. [Doc 2013-6589]
    • IRS Provides Penalty Relief for Delayed 2012 Tax Forms
      (Notice 2013-24; 2013-16 IRB 1; 3/20/2013)
      The IRS has issued guidance that provides transitional relief for additions to tax under section 6651(a)(2) because of the delayed publication of some IRS forms for tax year 2012. [Doc 2013-6588]
LAST UPDATED 3/25/2013