LexisNexis® Legal Newsroom
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...

The Special Tax Rate for Small Business Stock

by Matthew Cavitch, J.D. * Certain taxpayers can take advantage of a slightly favorable tax rate through the sale of qualified small business stock with timely tax planning. There are several limitations on the type of stock which qualifies and the class of taxpayer which is eligible for this tax...

Estates and Trusts and Final Regs Under IRC Section 1411

Basics of the Net Investment Income Tax. The Net Investment Income Tax (NIIT) is imposed by I.R.C. Section 1411. The NIIT applies at a rate of 3.8 percent to certain net investment income of individuals, estates, and trusts that have income above the statutory threshold amounts. The NIIT went into effect...

College Booster Club Contributions

[1] Introduction Not all transfers of value to qualified charitable organizations are deductible. When you buy a book from the college bookstore, your payment is not a contribution; you got what you paid for. If you give $300 to your local public radio station, and they give you a tote bag, you've...

IRS Ruling: LLC Members Not Limited Partners for Employment Tax Purposes

by Stephen Looney* In CCA 201436049 , (September 5, 2014), the IRS found that members of a management company LLC ("Management Company") were not "limited partners" within the meaning of IRC Section 1402(a)(13) and, therefore, were subject to the self-employment tax on their distributive...

Alcohol Taxes and Incentives - The Spirit of the Law and What's Hoppin'

by Daniel G. Mudd * Basics of Federal Excise Tax on Alcohol Federal taxation of alcohol generally follows the same tax structure and controls as is used with other commodities and products sold in the United States which are subject to excise tax ( e.g. , tobacco, gasoline, etc.). Accordingly,...

Reasonable Cause Exception to Estate Tax Failure to File or Pay Penalties

Editor's Note: Portions of this article are excerpted from Matthew Bender's How to Save Time & Taxes Preparing Fiduciary Income Tax Returns ... [A] fiduciary can be liable for penalties for failure to file a decedent's or estate's tax return and failure to pay a decedent's...

Alcohol Taxes and Incentives - The Spirit of the Law and What's Hoppin'

by Daniel G. Mudd * ... The Basics of the Federal Excise Tax on Alcohol Federal taxation of alcohol generally follows the same tax structure and controls as are used with other commodities and products that are subject to excise tax ( e.g. , tobacco, gasoline, etc.). Accordingly, there are Federal...

Refund Claims Dismissal on Statute of Limitations’ Grounds Affirmed

The U.S. Court of Appeals for the Federal Circuit has affirmed the Court of Federal Claims’ dismissal of a multinational corporation’s refund claims for tax years 1997 and 1998 based upon disallowed foreign tax credits attributable to the corporation’s payment of Belgian withholding...

Hatch, Wyden Ask About Federal-State Data Sharing to Combat SIRF

Spurred by complaints from state tax authorities about delayed federal information reporting and worries that those delays could enable stolen identity refund fraud (SIRF), the leaders of the Senate Finance Committee have asked four federal shared-service centers about their schedules for receiving and...

DOJ Says Lerner May Have Used Personal E-Mail for IRS Business

The Justice Department attorneys representing the IRS in a Freedom of Information Act suit seeking the e-mails of former IRS official Lois Lerner said August 24 that they were just made aware of a personal e-mail account that Lerner might have used to send or receive communications regarding the review...

Koskinen Details Efforts to Thwart Stolen Identity Refund Fraud

IRS Commissioner John Koskinen said August 26 that while his agency had been "overwhelmed" by cases of stolen identity refund fraud in previous years, the IRS has been making steady progress despite reduced resources in protecting against fraudulent refund claims and prosecuting the people...

Trump Favors Profit Repatriation to Stem Corporate Inversions

GOP presidential front-runner Donald Trump said he would favor repatriating trillions of dollars of corporate profits at a lower tax rate in order to create U.S. jobs and stem the tide of corporate inversions. During an interview August 27 on MSNBC, Trump estimated that around $ 2.5 trillion could be...