tax Advice Archive
Death and Taxes
May 24, 2021
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TweetShare1SharePin1 Shares On the substantive side of tax issues Congress is focusing on death and taxes as it studies and debates whether to eliminate the stepped up basis currently given to property upon the death of the owner. This debate is not new. When I was in law school in the mid-1970s taking a class
The Fourth Circuit and the Primacy of Refund Offsets in Bankruptcy
May 21, 2021
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TweetShare1SharePin1 Shares We welcome guest blogger Michelle Drumbl. Professor Drumbl runs the tax clinic at Washington & Lee Law School and teaches tax there as well. She started as a clinician at almost the same time I did, and it has been a pleasure to work with her over the years. Starting later this summer
Calling the Number Provided in IRS Correspondence
May 20, 2021
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TweetShareSharePin0 Shares This has been a tough year for the IRS. For a variety of reasons not the least of which is the pandemic, it has faced numerous challenges. My understanding is that its performance in answering the general phone line during the filing season ranged somewhere between 2-5% which is not good but it’s
COBRA premium assistance credit under ARPA clarified
May 19, 2021
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TweetShareSharePin0 Shares In 86 questions and answers, the IRS in Notice 2021-31 gave employers, health care plans, and insurers background and clarifications on how to provide premium assistance for COBRA health care continuation benefits to affected employees and other beneficiaries and claim a corresponding tax credit. The temporary premium assistance and credit are available under
Advanced Child Tax Credit
May 19, 2021
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TweetShareSharePin0 Shares Congress has passed legislation creating a much expanded child tax credit (CTC) and requiring the IRS to make advance payments of the CTC during the 2021 tax year starting in July. The expanded credit provides a $3,600 credit for every child under 6 and a $3,000 credit for every child under 17. The
How nonfilers can claim advance child tax credit payments
May 18, 2021
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TweetShareSharePin0 Shares In Rev. Proc. 2021-24, the IRS clarified how individuals who are not otherwise required to file 2020 federal income tax returns can claim advance child tax credit (CTC) payments as well as stimulus payments (i.e., third-round economic impact payments, 2020 recovery rebate credit payments, and additional 2020 recovery rebate credit payments). To process
Further Initial Thoughts on CIC Services
May 18, 2021
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TweetShareSharePin0 Shares In this brief post and following on Professor Bryan Camp’s discussion, I offer some initial observations on the Supreme Court’s CIC Services opinion. As Keith noted in his introduction to Bryan’s post, I am not disinterested in this issue-with the Harvard Clinic and on behalf of the Center for Taxpayer Rights I helped
Microcaptive reporting challenge may go forward
May 17, 2021
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TweetShareSharePin0 Shares A lawsuit against the IRS’s requirement that taxpayers using certain microcaptive insurance arrangements and their material advisers must report the arrangement to the IRS is not barred by the Anti-Injunction Act and therefore may proceed, the Supreme Court ruled Monday. In a unanimous decision, the Court in CIC Services, LLC, No. 19-930 (U.S.
Supreme Court Reverses the Sixth Circuit in CIC Services – Viewpoint
May 17, 2021
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TweetShareSharePin0 Shares Today, the Supreme Court handed down a unanimous opinion in CIC Services. The Court holds that the Anti-Injunction Act does not bar a suit challenging a IRS notice that requires a non-taxpayer to provide information even though the failure to provide the information could result in a penalty. Today, we bring an observation
Taxpayers deserve pandemic penalty relief, AICPA says
May 17, 2021
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News Practice & Procedures By Alistair M. Nevius, J.D. With taxpayers continuing to face challenges related to the COVID-19 pandemic and the IRS facing a backlog of 29 million tax returns that need manual processing, the AICPA on Monday urged the IRS to implement “fair, reasonable, and practical” penalty relief measures to