International Reporting Failures Create Penalty and Statute of Limitations Problems

An ever-growing number of businesses and individuals are going global. Familiarity with the U.S. tax forms that are necessary to properly disclose foreign assets and interests is thus paramount. Four critical forms – Foreign Bank Accounting Re-port (FBAR), 8938, 8621, and 3520 – are summarized, including applicable penalties. K&D associate, Patrick […] Read more »

IRS Disagrees with Tax Court on Partner Excluding Debt Cancellation Income

The IRS has recently announced a non-acquiescence in four Tax Court cases involving the cancellation of partnership indebtedness.  Generally, the discharge of indebtedness gives rise to gross income to the obligor.  However, Code Section 108 provides a number of exceptions.  Section 108(a)(1)(A) provides an exclusion if the cancellation of indebtedness […] Read more »

IRS Issues Relief from Repair Regulations and Form 3115 Filing Requirement for Small Taxpayers (Rev. Proc. 2015-20)

On Friday, February 13, 2015, the IRS released an advance version of Rev. Proc. 2015-20, 2015-5 I.R.B. 450, that allows a “small business taxpayer” to make certain tangible property and dispositions changes in methods of accounting with an I.R.C. § 481(a) adjustment that takes into account only amounts paid or […] Read more »

Bross Trucking Inc. v. Commissioner of Internal Revenue

T.C. MEMO 2014-107 (2014). Bross Trucking is a fascinating case from an estate planning perspective because it presents facts that occur frequently in the representation of family businesses and the planning issues confronting the entrepreneur.  In estate planning for families, advisors often encounter circumstances where the family business is growing, […] Read more »