Adequate Disclosure Guidance

Randy ChmTax Alert

IRS Updates Adequate Disclosure Guidance The IRS has updated guidance on how to make an adequate disclosure on an income tax return for purposes of reducing or eliminating a substantial understatement penalty and/or an unreasonable position return preparer penalty. This latest update applies to tax years beginning in 2017 and returns filed on 2017 tax forms, as well as to … Read More

New Social Welfare Organization Form

Del YounglasTax Alert

Tax Alert from Maloney+Novotny

The IRS has issued a new form to be used by organizations applying for tax-exempt status under Code Sec. 501(c)(4): Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code.

2018 Inflation Adjusted Tax Amounts

Richard PachecoTax Alert

Tax Alert from Maloney+Novotny

The Tax Code requires that federal income tax brackets and certain other figures be adjusted for inflation annually. Wolters Kluwer has projected the 2018 standard deduction, tax bracket amounts and other inflation-adjusted tax figures based on the relevant inflation data just released by the U.S. Department of Labor (DOL)…

Material Participation Ruling

Del YounglasTax Alert

Tax Alert from Maloney+Novotny

Dentist persuades Tax Court of material participation in real estate business The Tax Court determined, in Zarrinnegar v. Commissioner, TC Memo. 2017-34, that a dentist by profession, was a real estate professional, and therefore could deduct rental real estate losses. As such, the losses were not barred by the passive activity rules. The taxpayer was a dentist married to another … Read More

Future Pension Payouts Not Counted as Asset

Del YounglasTax Alert

Tax Alert from Maloney+Novotny

The Tax Court, in Schieber v. Commissioner, TC Memo. 2017-32, found that the right to a continuing monthly payment state pension plan was not an asset in determining insolvency for purposes of exclusion from cancellation of indebtedness income. The court rejected the IRS’s argument that the ability of the taxpayers to use their monthly pension payments to continue to pay … Read More

Lack of ACA Coverage Status Will Not Reject Returns

Del YounglasTax Alert

Tax Alert from Maloney+Novotny

The IRS has announced that it will continue to process individual returns that do not report the taxpayer’s health coverage status under the Affordable Care Act (ACA). The IRS will accept returns that fail to indicate coverage, an exemption or a shared responsibility payment. The IRS had planned to reject these returns (known as “silent returns”) this filing season after … Read More

Ohio Tax Appeal Jurisdiction Issue

Del YounglasTax Alert

Ohio Taxpayer lacked jurisdiction for appeal The Ohio Board of Tax Appeals did not have jurisdiction to consider the taxpayer’s appeal of the Tax Commissioner’s final determination regarding a use tax assessment because the taxpayer failed to specify any error in the commissioner’s determination. However, even if the board had jurisdiction, the taxpayer would not have shown that the subject … Read More

Passport certifications will begin in early 2017, IRS posts on website

sethastianTax Alert

Tax Alert from Maloney+Novotny

The IRS has informed taxpayers via its website that the agency will begin, in early 2017, to remit certifications to the U.S. State Department for individuals who are seriously delinquent in paying their tax debt. Such certification could impact an individual’s ability to obtain or keep a U.S. passport. At this time, the IRS has not started certifying tax debt to the State Department, the agency reported on its website.

March 2017 tax compliance calendar

sethastianTax Alert

Tax Alert from Maloney+Novotny

As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important federal tax reporting and filing data for individuals, businesses and other taxpayers for the month of March 2017.

Tax returns lacking ACA coverage status will not be rejected

sethastianTax Alert

Tax Alert from Maloney+Novotny

The IRS has announced that it will continue to process individual returns that do not report the taxpayer’s health coverage status under the Affordable Care Act (ACA). The IRS will accept returns that fail to indicate coverage, an exemption or a shared responsibility payment. The IRS had planned to reject these returns (known as “silent returns”) this filing season after having accepted them in past years. Taxpayers may, however, be contacted later, the IRS cautioned.