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tax Advice Archive

Interruption of LIFO inventories due to COVID-19 and Sec. 473 relief

TweetShareSharePin0 Shares A company with last-in-first-out (LIFO) inventory that experiences a decrease in LIFO inventory would typically have additional taxable income related to the LIFO decrement. A LIFO decrement is the excess of the prior-period ending inventory minus the current-period ending inventory. Decrements result in a reduction of increments or layers created in earlier years.

The Effect of the Missing Postmark

TweetShareSharePin0 Shares In an opinion issued by the CFC in a refund case, McCaffery v. United States, No. 1:19-cv-01112 (Ct. Fed. Cl. 2021), the issue was whether the taxpayer could introduce extrinsic evidence of the mailing of a refund claim where the claim arrived at the IRS just after the filing deadline, but the envelope

Premature Assessment Announcement from Tax Court

TweetShareSharePin0 SharesOn August 16, 2021, the Tax Court issued the following press release regarding premature assessments: UNITED STATES TAX COURT Washington, D.C. 20217 August 16, 2021 PRESS RELEASE On July 23, 2021, the United States Tax Court issued a press release regarding the significantly increased number of petitions received this year. To date, the Court

Updates for ITIN Holders

TweetShareSharePin0 Shares Two issues have come up recently for ITIN holders that I’d like to flag. Thanks to Sarah Lora of the Lewis & Clark Low Income Taxpayer Clinic for prompting this post and providing much of the content. 1. Earlier this spring, NTA Erin Collins wrote a blog post highlighting the delays caused by

Another Twist on Death and Taxes

TweetShareSharePin0 Shares In Catlett v. Commissioner, T.C. Memo 2021-102 the Tax Court dismisses a case for lack of prosecution over seven years after the petitioner filed the case.  He participated actively in the case – at least he was active in seeking continuances and some discovery – until he died.  When he died, the Court

Treasury Commits to a Permanent and Accessible Simplified Filing Portal for Child Tax Credit Claimants

TweetShareSharePin0 Shares One of the main stumbling blocks to full distribution of advance child tax credit (AdvCTC) payments has been the relative inaccessibility of the online sign-up tool for individuals who don’t have a 2019 or 2020 tax return on file with the IRS. Today the Treasury Department announced major improvements to the sign-up tool:

Automatic accounting method change procedures updated

TweetShareSharePin0 Shares The IRS on Thursday updated the list of accounting method changes to which automatic change procedures apply (Rev. Proc. 2021-34). Generally, unless otherwise provided, a taxpayer must secure the IRS’s consent before changing its accounting method. To obtain the IRS’s consent, taxpayers file Form 3115, Application for Change in Accounting Method. Even when
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