Category: Tax Planning & Compliance
Tax Court reminder – IRS levies on IRA accounts are taxable
The United States Tax Court recently issued a Memorandum opinion reminding taxpayers that when the Internal Revenue Service (IRS) seizes an Individual Retirement Account (IRA), the seized IRA needs to be included as taxable income. Lonnie Wayne Hubbard v. Commissioner of Internal Revenue (T.C. Memo. 2024-16). In 2017, disgraced…
IRS ISSUES CONSEQUENTIAL RULING ON TRUST MODIFICATIONS
Chief Counsel Advice (“CCA”) 202352018, an internal legal advice memo from the IRS National Office to field agents, released December 29, 2023, addressed the gift tax consequences to the beneficiaries of modifying an irrevocable trust that is a “grantor trust” under the tax code provisions of Internal Revenue Code (“I.R.C.”…
New Priority Guidance Plan Announced For Limited Partner Exception to SECA
NEW PRIORITY GUIDANCE PLAN ANNOUNCED FOR LIMITED PARTNER EXCEPTION TO SECA For a number of years there has been an ongoing challenge by the IRS of taxpayers claiming limited partner status and exemption from the Self-Employment Contributions Act (SECA) tax. The activity in this area has greatly increased in…
K&D Upcoming Tax Seminars
Kulzer & DiPadova, P.A. is once again presenting a number of annual tax seminars reviewing the major changes and legislative trends in taxation throughout 2023. Join us virtually or in person to explore the latest in federal and state legislation, estate tax developments, international taxation requirements, and more! Click on…
IRS Announces Withdrawal Process for Employee Retention Credit Claims
On October 19, 2023, the IRS announced the details of a special withdrawal process to help those who filed an Employee Retention Credit (ERC) claim and are concerned about its accuracy. The process has been announced as part of a larger effort to protect small businesses and organizations from scams,…
Want to Make an Impact?—A Win-Win: Using Retirement Funds to Support Your Favorite Cause
Want to Make an Impact?—A Win-Win: Using Retirement Funds to Support Your Favorite Cause Introduction In December 2022, Congress passed the Secure 2.0 Act of 2022 (the “Act”). Included in the Act is a provision that allows certain individuals to make a one-time transfer of up to $50,000 directly from…
IRS Taxes Gain On Sale of Shares Gifted to Charity to Donor
The recent case of Estate of Hoensheid v. Commissioner of Internal Revenue, decided in March 2023, shows that the IRS is continuing to aggressively attack gifts of shares of stock to a charity, followed by a sale of those shares by the charity. The object of the taxpayer is to…
Renewed Warning, Criminal Charges against Fraudulent ERC Promotors
Renewed Warning, Criminal Charges against Fraudulent ERC Promotors On February 1, 2023, a federal grand jury in Salt Lake City, Utah returned an indictment against Zachary Bassett, Mason Warr, and their firm COS Accounting & Tax LLC d/b/a 1099 Tax Pros. Each defendant faces twenty-five criminal counts for actions…
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night During 2021, two different Appeals courts in the United States heard cases with similar fact patterns on a sensitive tax issue but held completely opposite decisions. Specifically, the Fifth and Ninth Circuits both ruled on cases dealing with taxpayers…
New Jersey ITIN Holders Director Assistance Excludable from Federal Taxable Income
New Jersey ITIN Holders Director Assistance Excludable from Federal Taxable Income The IRS ruled that a payment made under New Jersey’s ITIN Holders Director Assistance Program was excludible from federal taxable income as a payment is made for the promotion of the general welfare or as a disaster relief payment….