Federal Tax Update - Oct. 7, 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:

NICHOLS PATRICK WEEKLY TAX UPDATE
With E. Lynn Nichols, CPA
October 7, 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

  1. Summary Judgment Denied in IRC Sec. 2035(b) Gift Valuation Issue
    (Jean Steinberg v. Commissioner; 141 T.C. No. 8; 9/30/2013)
    The Tax Court, denying the IRS summary judgment, held that a group of gift donees' assumption of potential section 2035(b) estate tax liability is not barred from being consideration in money or money's worth within the meaning of section 2512 for gift valuation purposes.
    [Doc 2013-23089]
  2. Custom Home Builder Subject to IRC Sec. 263A and Must File 3115 to Change
    (Frontier Custom Builders Inc. v. Commissioner; T.C. Memo. 2013-231; 9/30/2013)
    The Tax Court held that a portion of the adjustments the IRS made to a custom home building company's income are accurate, finding that the company was not entitled to deduct all costs and expenses of its business but should have capitalized a portion of the costs and expenses because it is a producer of real property under section 263A.
    [Doc 2013-23091]
  3. Supreme Court Grants Cert in Quality Stores
    (Tax Notes Today; 10/2/2013; Article by Matthew Dalton)
    The Supreme Court on October 1 granted the government's petition for certiorari in United States v. Quality Stores, No. 12-1408, in which the government framed the question presented as whether severance payments made to employees whose employment was involuntarily terminated are taxable under FICA.
    [Doc 2013-23144]
  4. Bike-Share Program Is Not a Qualified Transportation Fringe
    (INFO 2013-0032; 7/26/2013)
    The IRS explained why a bike-share program is not a qualified transportation fringe benefit under section 132(f) for purposes of exclusion from income.
    [Doc 2013-23180]
  5. Individual's Claim of Tax Fraud Against Trustees Fails on Technical Grounds
    (Mary C. Vandenheede v. Frank B. Vecchio et al.; CA 6; No. 13-1253; 10/1/2013)
    The Sixth Circuit, in an unpublished opinion, affirmed a district court judgment against an individual in her suit for tax fraud under section 7434, civil conspiracy, and other state law claims against the trustees (a CPA, the CPA firm, and an Attorney) of her boyfriend's trust stemming from the filing of Forms 1099 that indicated she received nonemployee compensation from the trust.
    [Doc 2013-23156]
LAST UPDATED 10/7/2013