Voluntary Tax Return Preparer Certification in Wake of Loving v. IRS

Loving v. IRS In February 2014, the D.C. Circuit of the U.S. Court of Appeals issued its decision in Loving v. IRS , 742 F.3d 1013 (D.C. Cir. 2014) , regarding the IRS’ authority to license tax return preparers. The D.C. Circuit upheld the decision of the lower court ( Loving v. IRS , 917 F...

IRS Transfer Pricing Audit Roadmap's Potential Impact on U.S. Taxpayers

by Barry Shott, Richard Barrett, Elizabeth Sweigart and Shwetal Shah * Summary. Improved cooperation, collaboration, and transparency continue to be key themes of the message from the Internal Revenue Service ("IRS") for both its own practitioners and the tax community. In another sign of...

Sealing an Indictment Pending Arrest in Tax Cases

I just saw this interesting case involving a lawyer indicted for tax obstruction, Section 7212(a), [ enhanced version available to lexis.com subscribers ]. The case is United States v. McBride , 2014 U.S. Dist. LEXIS 89455 (D. MA 2014), here . The count of the indictment, Section 7212(a), is here . This...

Attorney Sentence Properly Considered Attorney Status and Deterrence in Tax Cases

In United States v. McCord , 2014 U.S. Dist. LEXIS 86436 (SD OH 6/25/14), [ enhanced version available to lexis.com subscribers ], the defendant, an attorney, was sentenced by a Magistrate Judge to 60-days incarceration and 1-year of supervised release. The defendant appealed to the District Judge, alleging...

Court of Appeals Rejects Arguments that Instructions on Willfulness and Good Faith Were Reversible Error

In United States v. Basile , 2014 U.S. App. 12388 (3d Cir. 2014), here , the defendants, husband and wife, chiropractors, engaged an asset protection firm who put them into offshore entities and bank accounts to avoid tax. The defendants took other actions to obscure their income and avoid tax. The defendants...

Part II: Federal and State Tobacco Taxes -- On Fire or Just Smoking?

by Daniel G. Mudd * In a follow-up to Part I (EIA 7184) [ "Basics of Federal and State Tobacco Taxes -- On Fire or Just Smoking?" by Daniel G. Mudd – Emerging Issues Analysis Commentary], which covered the Federal Excise Tax (FET) considerations for a company involved in the tobacco...

Ongoing Intrigue: Self-Employment Tax, Limited Partners, and LLCs

On so many fronts, understanding federal tax discipline, and complying with its tenets, is a daunting challenge. Taxpayers with the best intentions, and the practitioners who serve them, face frequent 'head scratchers' in their concerted efforts to apply the IRC, regulations, and judicial authority...

Message to Treasury: Flex Your Muscles! Who Needs Lawmakers?

In today's political environment, there's no shortage of frustration over the virtual absence of substantive legislation coming out of Congress. The federal tax arena is no exception, of course. And what better target to focus on nowadays than big bad corporations who have the audacity to navigate...

Trojan Horse -- The ACA's 3.8% Medicare Surtax

Editor’s Note : This EIA is excerpted from chapter 1 of the Matthew Bender publication New York University Review of Employee Benefits and Executive Compensation – 2014 , available on Lexis.com, Lexis Advance, and in print HERE . ... In part, the Affordable Care Act created an entirely...

Final Regs on Itemized Deductions of Estates and Non-Grantor Trusts

Like individuals, trusts or estates may deduct ordinary and necessary administration or nonbusiness expenses that are paid or incurred during the tax year. [ IRC §§ 212 , 641 ; Treas Reg §§ 1.212-1(i) , 1.641(b)-1 .]Miscellaneous itemized deductions are allowed to the extent that...

Loving v. IRS and Tax Return Preparer Regulations

by Kimberly Stanley, J.D., LL.M. * Introduction Like more than half of United States taxpayers, you probably pay someone else to prepare your federal income tax return. Although about 40 percent of paid return preparers are attorneys, CPAs, or enrolled agents, the remaining 60 percent have no professional...

View all the federal, state, and international tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for October 8th from TaxAnalysts® on LexisNexis...

EU to Investigate Amazon Tax Ruling for State Aid Breach

The European Commission on October 7 formally launched an investigation into whether Amazon's Luxembourg subsidiary received a favorable transfer-pricing-related tax ruling that violates EU state aid rules. According to a commission release, the investigation focuses on a tax ruling granted by the...

Extenders Indecision Could Delay Filing Season, Koskinen Warns

The IRS might have to delay the start of the 2015 filing season and the processing of tax refunds if Congress does not decide by November whether to renew expired tax provisions known as extenders, IRS Commissioner John Koskinen said October 6. Koskinen's comments came in a letter to Senate Finance...

Final Treasury Regulations Issued on Back-to-Back Loans

by Ronald :Levitt * Treasury Regulations addressing basis increases for back-to-back loans made by S corporation... have been finalized without substantive changes [to proposed regulations issued in 2012] other than changes to the effective/applicability date and minor clarifying changes. [ T.D. 9682...

Filing Compliance Procedures Challenge U.S. Taxpayers Residing Overseas

Generally, [the 2012 Offshore Voluntary Disclosure Program] OVDP is designed for those delinquent U.S. taxpayers who have been holding financial assets overseas, have not been disclosing such assets to the U.S. government, have not been reporting the income produced from such assets, and...

Navigating the IDR Process for U.S. - Based Multinational Enterprises

By Paul DeNard, Anthony Russo, Tien Do and Elizabeth Sweigart The new information document request (IDR) process is aimed at supporting a systematic, issue-focused approach to examinations. A year into the new IDR creation approach -- and six months into the new enforcement process -- the results...

Legislative Outlook: Extenders in Limbo

The waning 113th Congress will return from Thanksgiving recess December 1 to resume work on extenders, which are in limbo after a presidential veto threat scuttled the latest attempt at a deal to make some provisions permanent. The White House issued the threat November 25 after details of a plan emerged...

Congress Piddles, Twiddles, and Resolves - But to What End?

In a song from the musical “1776” (“Piddle, Twiddle, and Resolve”), John Adams sings the following: I do believe you've laid a curse on North America, A curse that we now here rehearse in Philadelphia. A second flood, a simple famine, Plagues of locusts everywhere, Or...

Treasury's Inexorable Slide Toward Unitary Taxation

Your authors have long maintained that the most sensible system for taxing business operations is reflected in the unitary system adopted by California, among other states. The system is sensible because it avoids arbitrary shifting of income and expenses among related entities. Under the unitary system...

Republicans Renew Push to Repeal Medical Device Tax

House Republicans have renewed their efforts to repeal the 2.3 percent excise tax on medical devices, hoping that bipartisan support for a measure introduced by Ways and Means Committee member Erik Paulsen, R-Minn., will protect it from President Obama's threat to veto any GOP attempts to unravel...

The Exclusion for Cancelled Mortgage Debt Income

by Suellen M. Wolfe * Introduction ...As the tax incentive for mortgage debt relief expired at the end of 2013, Congress' 2014 agenda includes tax extenders. Over 50 tax breaks expired at the end of 2013. As part of the tax extenders, Congress is considering extending the reinstatement of mortgage...

Legislative Outlook: CBO to Release Budget and Economic Outlook

Congressional Budget Office Director Douglas Elmendorf will discuss his office's annual budget and economic outlook in separate appearances before the House and Senate Budget committees the week of January 26. The CBO report is scheduled to be released January 26. Elmendorf will testify before the...

Ohio Sues Over Legality of ACA Transitional Reinsurance Fees

The Affordable Care Act faces yet another challenge after the state of Ohio and various public universities filed suit on January 26 with the U.S. District Court for the Southern District of Ohio regarding the legality of "transitional reinsurance program" fees levied on state and local governments...

Obama Reportedly Scraps Proposal to Tax 529 Earnings

President Obama has reportedly backed off a recent proposal to tax any earnings accumulated on new contributions to section 529 qualified tuition plans. The proposal was part of the broader tax plan that the White House outlined in a fact sheet just days before Obama delivered his State of the Union...