Lynn Nichols Federal Tax Update Podcast

March, 07 2019, Episode 33

Listen as Lynn Nichols provides commentary on 8 Items pertaining to current developments in U.S. tax law. This week’s topics include:

1. Organization Is Denied Tax-Exempt Status

The IRS denied tax-exempt status to an organization formed to develop programs to enrich and uplift the socio-economic well-being of its members, concluding that its organizing document doesn’t limit the organization to charitable purposes and its activities consist of serving the private interests of its members.

[LTR 201904015; 11/1/2018, rel. 2/25/2019]

 

1. Medical Corporation Denied Exempt Status

The IRS denied tax-exempt status to a professional corporation formed by a public charity for the business purpose of practicing medicine, concluding that it was not organized for one or more exempt purposes.

[LTR 20190401; 10/31/2018, rel. 2/25/2019]

 

1. Supreme Court Says No to 3 Tax Challenges

The Supreme Court recently rejected petitions challenging excise taxes, the IRS’s use of John Doe summonses, and deductions denied for horse-related activities.

[Tax Notes Today; 2/26/2019, Article by Patrice Gay]

 

1. Court Holds Estate Beneficiaries Liable for Unpaid Estate Tax

A U.S. district court, granting the government summary judgment, held that beneficiary family members are liable for an estate’s unpaid tax liability because the undisputed facts show that each individual received property includable in the gross estate and that the federal estate tax was not paid when due.

[U. S. v. Donna Ringling et al.; USDC SD S Div., No. 4:17-CV-04006, 2/21/2019]

 

1. IRS Releases Revised Audit Technique Guide on Foreclosures, Debt Cancellation

The IRS has revised an earlier audit technique guide for examining cases involving real estate foreclosures and cancellation of debt income.

[Real Estate Property Foreclosure and Cancellation of Debt Audit Technique Guide, 2/22/2019, Revising 3/11/2015]

 

1. Application and Sequence: Limiting Business Loss and Interest

Richard Joslin explains how the new business loss and interest expense imitations work in tandem and affect other code provisions.

[Tax Notes Today; 2/27/2019, Article by Richard Joslin]

 

1. Fact Sheet Outlines TCJA Changes Affecting Individuals and Families

The IRS has released a fact sheet (FS-2019-2) outlining changes made by the Tax Cuts and Jobs Act, including changes affecting small business taxpayers and changes to withholding, deductions, benefits for dependents, the alternative minimum tax, and retirement plans.

[FS-2019-2; 2/26/2019,

 

1. IRS Releases Practice Unit on Self-Employment Tax and Partners

The IRS released a practice unit on when an individual partner’s distributive share of income is subject to self-employment tax, noting that the unit applies to all arrangements that are treated as partnerships for federal tax purposes.

[PST/C/366_01_01-01; 26 Page Slide Show]