TAXES Archive

Appointing a Receiver to Protect Value and Innocent Third Parties

aallenlenth April 19, 2021 No Comments

TweetShareSharePin0 Shares The Supreme Court has said that Congress could not have written a broader lien than the federal tax lien. In addition to the lien, Congress gave the IRS broad powers to take property through levy in IRC 6331. We can think of these administrative powers as the superpowers bestowed upon the IRS in

Are FBAR Penalties Taxes for Purposes of the Flora Rule?

aallenlenth April 19, 2021 No Comments

TweetShareSharePin0 Shares In Mendu v. United States, No. 1:17-cv-00738 (Ct. Fd. Claims April 7, 2021) the Court of Federal Claims held that FBAR penalties are not taxes for purposes of applying the Flora rule. In arguing for the imposition of the Flora rule the taxpayer, in a twist of sides, sought to have the court

American Rescue Plan Act passes with many tax components

aallenlenth April 18, 2021 No Comments

TweetShareSharePin0 Shares The American Rescue Plan Act, H.R. 1319, was signed into law Thursday by President Joe Biden, one day after the House of Representatives passed it by a vote of 220–211. H.R. 1319 was first passed by the House on Feb. 27. The Senate made several amendments and passed its version of the bill on

AICPA asks for guidance on S corp. and partnership PPP loan forgiveness

aallenlenth April 18, 2021 No Comments

TweetShareSharePin0 Shares Taxpayers urgently need guidance on Paycheck Protection Program (PPP) loan forgiveness issues, the AICPA has told the IRS, and the AICPA has made recommendations proposing solutions to those issues. The proposed solutions came in a letter sent March 15 from the AICPA Tax Executive Committee to two members of the IRS Chief Counsel’s

Federal aid could hobble new state tax cuts and credits

aallenlenth April 18, 2021 No Comments

TweetShareSharePin0 Shares A condition attached to $350 billion in relief for state and local governments by the American Rescue Plan Act (ARPA), P.L. 117-2 — that states may not use the money to offset their own tax reductions — may prove problematic, and is perhaps unconstitutional, tax practitioners said. ARPA’s Coronavirus State Fiscal Recovery Fund

IRS postpones April 15 deadline

aallenlenth April 17, 2021 No Comments

TweetShareSharePin0 Shares The IRS announced on Wednesday that it is postponing the deadline for all individual tax returns. Returns otherwise due April 15 will not have to be filed until May 17 this year. The IRS says it will issue formal guidance in the near future. The postponement applies only to individual taxpayers, who can

Tax filing postponement doesn’t go far enough, AICPA says

aallenlenth April 17, 2021 No Comments

TweetShareSharePin0 Shares The AICPA welcomed the IRS’s postponement of the April 15 income tax filing and payment deadline to May 17 but said the measure falls far short of needed taxpayer relief. After IRS Commissioner Charles Rettig, in a congressional hearing Thursday, sought to justify the Service’s limited postponement, AICPA President and CEO Barry Melancon

Amounts paid for personal protective equipment qualify for medical deduction

aallenlenth April 17, 2021 No Comments

TweetShareSharePin0 Shares News Expenses & Deductions By Sally P. Schreiber, J.D. The IRS said on Friday that amounts paid for personal protective equipment (PPE), including masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 can be treated as amounts paid for medical care under Sec. 213(d) (Announcement 2021-7).