tax update for financial executives

1/13/2014

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Tax Update for Financial Executives

Ed Zollars, CPA

[email protected]

www.cperesources.com

Resources

• Email – [email protected]

• Web site for resources –www.cperesources.com

mailto:[email protected]

http://www.cperesources.com/

mailto:[email protected]

http://www.cperesources.com

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NEW ITEMSTax Update

American Taxpayer Relief Act of 2012

• Passed into law on January 1, 2013 by Senate and House

• Contains provisions retroactive to 2012

• Deals with sunset provisions and traditional extenders

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Major Areas

• Dealing with Sunsets

– Modification of rates

– Modification of 2001 EGTRRA provisions

• Extenders

– Individual

– Business

– Energy

• Designated Roth rollover for qualified plans

Repeal of EGTRRA Sunset

• Affected only a few business related items

– Made §127 Employer Provided Education Benefit Permanent

– Made §45F Employer Provided Childcare Facility Credit Permanent

• Bill in General

– Did not impact corporate rates

– Did not extend reduced FICA rate imposed on employees

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Corporation Dividends

• Retained linkage to capital gains rates for qualified dividends

• Individual capital gain rates

– Retain 0%/15% rates

– Add new 20% rate

– Applies at same level as individual/trust 39.6% rate applies

Top Rate Taxable Income Levels

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Employer Provided Transit Benefit

• Restored, retroactive for 2012, increased exclusion for

– Commuter highway vehicle benefit

– Transit pass

• Brought into line with qualified parking

• Good for 2012 and 2013

• Notice 2013-8 contains information about handling payroll tax reporting issues

Research Credit

• Yet again retroactively extended

• Applies to 2012 and 2013

• Then scheduled to go away for 2014

– Election year

– Not a coincidence…one of Washington’s biggest campaign fund raising gimmicks

• Modified allocation for controlled group – see Notice 2013-20 issued Friday

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Work Opportunity Credit

• Retroactively reinstates categories

– All categories except qualified veteran expired at end of 2011

– Replaces “lost” categories for 2013, then extends everything through 2013

• IRS Notice 2013-4

– Applies to those hired before 3/31/13

– Must apply for certification (Form 8850) by April 29, 2013

Depreciation Part I

• 15 year straight line extended for

– Qualified leasehold property

– Qualified restaurant property

– Qualified retail improvements

• Must have been placed in service before January 1, 2014

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§179

• Retroactively restores

– $500,000 maximum expensing for years beginning in 2012 and 2013

– $2,000,000 beginning of phase out for years beginning in 2012 and 2013

• Reinstates qualified real property rules through years beginning in 2013

• Once again refused to let amount drop

Small Business Stock §1202

• Extends period to issue stock eligible for 100% exclusion

• Stock acquisition date pushed forward to prior to January 1, 2014 (previously had expired at end of 2011)

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S Corporations

• Basis Adjustments for Noncash Contributions

– Extended through tax years beginning before December 31, 2013

– Makes it possible to deduct FMV for capital gain noncash contributions

S Corporations

• Built-In Gain Recognition Period Temporary Reduction to 5 Years

– Will apply for computation of net recognized built-in gain for 2012 and 2013 (note did not use the same language as before)

– Installment sale rule

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Bonus Depreciation

• Extended the 50% bonus depreciation

– Placed in service prior to January 1, 2014

– Certain assets allowed extra year, as before

• Option to elect to accelerate AMT credits in lieu of claiming bonus depreciation

Energy Tax Extenders

• Number of detailed energy related items extended through 2013

• Most are applicable to a limited set of taxpayers

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Designated Roth Accounts

• Found at very end of the bill – apparent revenue raiser

• Plans may allow individuals to transfer balance to designated Roth account even if not otherwise eligible for a distribution

• Participant must pick it up in income

• Plan will need to be amended to allow for this if want to offer option


Large Employer Shared Cost Program (ACA)

• Provision Basics

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Large Employer Defined

• Basic Provisions

• Applying the “Previous Year” Test for Inclusion

• Seasonal Worker Rule

• Calculating FTEs for Purposes of Determining “Applicable Large Employer” Status

• Applicable Payment Amount


Key Coverage Definitions

• Minimum Essential Coverage

• Minimum Value

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Employer Not Offering “Minimum Essential Coverage”-§4980H(a) Penalty

• Triggering the Penalty

• Offer of Minimum Essential Coverage to Full-Time Employees

• Allocation of the 30 Employee Reduction to Members of Group


Employer Offering “Unaffordable” Minimum Essential Coverage-§4980H(b)

• Triggering the Penalty

• Offer of Coverage

• Members of Group

• Affordability• General Rule

• Safe harbors

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Full Time Employee

• Hour of Service

• Determining Hours


Look-Back Measurements for Continuing Employees

• Standard Measurement Period

• Stability Period

• Optional Administrative Period

• Categorizing Employees

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New Employees Treatment Under Look-Back Rules

• New Non-Variable Hour/Non-Seasonal Employees

• Initial Measurement Period for Other New Employees

• Special Administrative Period Rule

• Change of Status from Variable Hour or Seasonal Employee During the Initial Measurement Period

• Transitioning to Continuing Employee Tests


Other Issues

• Rehired Employees

• Employee Nonpayment of Premiums

• No Deduction Allowed for Shared Cost Payments

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Large Employer Information Reporting Requirements


Impact of Windsor Decision on BusinessesTax Update for Financial Executives

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Section: 2056Supreme Court Rules Estate of Individual in Same Sex Marriage Entitled to Marital Deduction, Requires Federal Government to Respect State Same Sex Marriages

• Citation: Windsor v. United States, US Supreme Court, 2013-2 U.S.T.C. ¶50,400, 6/26/13


Section: 401Department of Labor Decides State of Celebration Determines Validity of Participants' Marriages

• Citation: EBSA Technical Release 2013-04, 9/18/13

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Section: 3101Special Optional Refund Procedures Outlined for Payroll Tax Matters Affected by the Windsor Decisions Striking Down

• Citation: Notice 2013-61, 9/23/13

REPAIRSTax Update

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Section: 263IRS Releases Final Revised Capitalization/Repair Regulations

• Citation: TD 9636 and REG 110732-13, 9/19/13

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Key Revisions• De Minimis Election

• Available to all taxpayers

• Requires written capitalization policy at beginning of tax year

• Invoice Cost Rule• With AFS - $5,000

• Without AFS - $500

• Still have access to “does not misstate income” defense for larger capitalization policy

• Building – IRS “breaks it up”

• Disposition Rules – Still proposed, meant to integrate with building issues

• Small taxpayer small building rule

§263-Tangible Property

• Notice 2012-73, 11/20/12, TD 9564, 12/27/11,

– Delayed effective date of proposed regulations

– Outlined likely changes

– Effective dates for final regulations years beginning after December 31, 2013 (2 year delay)

– No indication of change on accounting method provisions

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• Final Regulations Issued, 9/19/13

– Materials and Supplies [Reg. §1.162-3]

• Defined (including secondary de minimis rule)

• Expensed if incidental and– No record of consumption is kept

– Income remains clearly reflected

• Rotable spare parts

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– Capital Expenditures General Rule, [Reg. §1.263(a)-1], p. 2-34

• Definition

• Treatment of transaction costs

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– Produce Tangible Property [Reg. §1.263-2], p. 2-34

• Cost includes invoice costs, facilitation costs, expenses incurred prior to placing in service

• Same rules apply for acquiring property for resale

• Facilitation costs – special rule for real estate & employee costs

• Capitalize costs to defend or perfect title

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– Improve Tangible Property [REG. §1.263(a)-3], p. 2-36

• Three Categories Capitalized– Result in a betterment of the unit of property

– Restore the unit of property

– Adapt the unit of property to a new or different use

• Unit of Property Definitions– Real Property Rules

– General Rules & Special Categories

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– Improve Tangible Property [REG. §1.263(a)-3]

• Leased Property Rules – Lessee Improvements

– Lessor Improvements

• General Application of §263A Rules

• Special Personal Residence Rules for Adding Repairs That Are Part of a Remodeling (and Inability to Do So In Other Cases)

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• Routine Maintenance Rule– Expect to perform more than once during class life

– Added special real property rule

• Definition of Betterment– Buildings Not Looked at as One Piece of Property

– Small taxpayer/small building de minimis rule added in final regulations

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• Restorations Must Be Capitalized – Building Rule

– “Like New” Condition Rule

• Major Component Test

• New Use Rule

• Limited Regulatory Accounting Methods

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• Final Regulations Issued 9/19/13

– Accounting Method Changes

• Adjust Capitalized Amounts as if Always Used These Rules in Most Cases

• File Form 3115, §481(a) Adjustment

– Examples in Regulations

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Tax Update on General Business IssuesTax Update for Financial Executives

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Section: 61Payments to Former Shareholder of Insurance Agency Found Not to Represent Disguised Sales Proceeds of Corporation

• Citation: H & M, Inc. v. Commissioner, TC Memo 2012-290, 10/15/12

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Section: 162Despite Claimed "Unique" Situation, No Deduction Allowed for Commuting Expenses

• Citation: Cor v. Commissioner, TC Memo 2013-240, 10/22/13


Section: 162Tax Preparer's Expenses to Hide from Her Clients "So She Could Function" Not Found to be Deductible Business Expenses

• Citation: Linzy v. Commissioner, TC Memo 2013-219, 9/16/13

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Section: 162Payments to Investors to Not Redeem Shares Were Deductible Until Clear Agreements Were Reasonably Expected to Be Renewed at Termination, IRS Formally Disagrees With Holding

• Citation: Media Space, Inc. v. Commissioner, 135 TC No. 21, 10/18/10, AOD 2012-8, 7/19/13


Section: 165Casualty Loss Not Automatically to Be Denied on Public Policy Grounds When Built in Knowing Violation of Local Laws

• Citation: Chief Counsel Advice CCA 201346009, 11/22/13

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Section: 165Individual Intended to Develop Property in Question, Allowed Ordinary Loss on Expiration of Option

• Citation: Sutton v. Commissioner, TC Summary Opinion 2013-6, 2/6/13


Section: 167Minor League Baseball Signing Bonus Must Be Amortized Over Period Player Bound to, Not Actual Average Life of Contract

• Citation: FAA 201339001F, 9/27/13

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Section: 167Franchise Termination Payment Created New Intangible Asset, Could Not Be Recovered Over Remaining Life of Original Franchise Intangible

• Citation: PLR 201317003, 4/26/13


Section: 168Merely Taking Business Trips on Aircraft Prior to December 31 Did Not Place Asset in Service Where Taxpayer Mandated Modifications Remained to Be Made

• Citation: Brown v. Commissioner, TC Memo 2013-275, 12/3/13

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Section: 172NOL Arising From "Closed" Year Must Still Be Supported By Records to Allow Deduction in Later Year

• Citation: Obedin v. Commissioner, TC Memo 2013-223, 9/23/13


Section: 179Guidance Released on Qualified Real Property §179 Provisions


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Section: 199Taxpayer Denied §199 Deduction for Subcontracted Manufacturing, Found Not to Be "The" Owner

• Citation: ADVO, Inc v. Commissioner, 141 TC No. 9, 10/24/13


Section: 263AProperty Acquired by Financial Institution Via Foreclosure Not Subject to §263A Provisions

• Citation: Legal Advice Memorandum AM2013-001 , 3/1/13

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Section: 318No Constructive Dividend Existed on Foregone Profit When Shareholder Reimbursed Corporation for Direct and Indirect Costs of Constructing Personal Residence

• Citation: Welle v. Commissioner, 140 TC No. 19, 6/27/13


Section: 446Taxpayer Switching From Deducting Expense Twice to Properly Deducting an Expense Once Is Not Changing Its Accounting Method

• Citation: CCA 201345025, 11/15/13

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Section: 451Sales of Gift Cards Redeemable by Unrelated Third Parties Now Qualify for Deferral Method of Revenue Procedure 2004-34

• Citation: Rev. Proc. 2013-29, 7/24/13


Section: 461Signing Contract Did Not Establish Fact of Liability and Inconsistent Financial Statement Reporting Renders Item Material

• Citation: Veco Corporation v Commissioner, 141 TC No. 14, 11/20/13

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Section: 469Each Tractor and Trailer Treated As Separate Item of Property for Self-Rental Passive Loss Rule

• Citation: Veriha v. Commissioner, 139 TC No. 3, 8/8/12


Section: 501Proposed Regulations Would Limit Candidate Related Activities by §501(c)(4) Organizations

• Citation: REG-134417-13 , 11/26/13

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Section: 501Organizations Found to Provide Impermissible Private Benefits, Not Operated for Exempt Purposes

• Citation: Partners in Charity, Inc. v. Commissioner, 141 TC No. 2 and Capital Gymnastics Booster Club, Inc. v. Commissioner, TC Memo 2013-193, 8/26/13


Section: 1060Allocation of Purchase Price to Buildings in Business Asset Purchase Could Not Be Changed Via Later Cost Segregation Study

• Citation: Peco Foods, Inc. v. Commissioner, TC Memo 2012-18, 1/17/12, affd CA 11, Docket No. 12-12169, 7/5/13

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Section: 6033Retroactive Reinstatement of Tax Exempt Status Relief Provisions Issued for Organizations Losing Tax Exempt Status Under Three Year Nonfiling Rule

• Citation: Revenue Procedure 2014-11, 1/2/14


Section: 60411099s Must Be Issued to Veterinary Corporations for Payments for Services by a Business

• Citation: Chief Counsel Advice 201349013, 12/6/13

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Tax Update on Compensation IssuesTax Update for Financial Executives

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Section: 45RIRS Issues Proposed Regulations on 2014 Small Employer Health Care Credit

• Citation: REG-113792-13, 8/23/13

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Section: 61Court Reluctantly Agrees to Rule on Question Parties Asked, Finding Employee Had to Include Forgiven Interest in Income

• Citation: Brooks v. Commissioner, TC Memo 2012-25, 1/26/12


Section: 62Examples Given by IRS of Expense Reimbursement Plans that Both Can and Cannot Be Excluded from an Employee's Wages

• Citation: Revenue Ruling 2012-25, 9/10/12

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Section: 83Clause in Employment Contract That Conditioned Loss of Stock on Discharge for Cause Was Still Found to Be Substantial Risk of Foreiture

• Citation: Austin v. Commissioner, 141 TC No. 18, 12/16/13


Section: 83IRS Releases Suggested Language for Making §83(b) Elections


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Section: 106HRA Integration With Employer Health Plans for Purposes of Market Reforms in Affordable Care Act Outlined



Section: 107Minister and Church Not Allowed to "Clarify" Employment Agreement to Designate Housing Allowance After the Fact

• Citation: Williams v. Commissioner, TC Summary Opinion 2013-60, 7/22/13

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Section: 125Optional $500 Carryover for Health FSAs May Be Adopted by Employers in §125 Plans

• Citation: Notice 2013-71, 10/31/13


Section: 162Portion of Compensation Deemed Reasonable Amount for Prior Undercompensation, Remainder Treated as Unreasonable

• Citation: Thousand Oaks Residential Care Home I, Inc. v. Commissioner, TC Memo. 2013-10, 1/14/13

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Section: 274Auto Mileage Rates for 2014 Published by IRS



Section: 274Employer's Deduction for Meals Furnished to Flight Crew Subject to 50% Reduction Under §274(n)

• Citation: CCA 201151020, 12/23/11

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Section: 401Temporary Relief Granted for Nondiscrimination Testing for Closed Defined Benefit Plans, IRS Seeks Comments on a Permanent Solution



Section: 401Final Regulations Allow Method for Employer to Stop Safe Harbor Contributions to Plans and Revert to Testing Mid-Year

• Citation: TD 9641, 11/15/13

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Section: 402Sixty Day Period for Rollover Does Not Begin Until Participant Actually Receives the Check

• Citation: PLR 201330047, 7/26/13


Section: 402Taxpayer Unwinding ROBS Transaction Allowed Extended Time to Roll Over Employer Distribution to IRA

• Citation: PLR 201236035, 9/7/12

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Section: 402AGuidance Issued on In-Plan Roth Rollovers Following ATRA Changes

• Citation: Notice 2013-74, 12/11/13


Section: 412Determination Letter Application for §412(i) Plan Did Not Amount to Disclosure of Participation in Listed Transaction, Nor Did It Provide a Reasonable Basis for Concluding Deductions Were Legitimate

• Citation: Soni v. Commissioner, TC Memo 2013-30, 1/29/13

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Section: 415IRS Announces 2014 Qualified Plan Inflation Adjusted Limits

• Citation: IRS News Release IR-2013-86, 10/31/13


Section: 3101IRS Not Limited to Assessing Payroll Taxes Only Against Designated as Compensation in Corporate Minutes for S Corporation

• Citation: David E Watson, P.C. v. United States, US District Court for the Southern District of Iowa (2011-1 USTC ¶50,443), 5/27/10, affirmed CA8 (2012-1 U.S.T.C. ¶50,203), 2/21/12, cert. denied, 10/1/12

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Section: 3121Social Security Wage Base for 2014

• Citation: Social Security Administration News Release, 10/30/13


Section: 3121Disagreeing with Federal Circuit Court of Appeals, Sixth Circuit and Michigan District Court Hold that Severance Payments Not Subject to FICA, Supreme Court to Resolve

• Citation: United States v. Quality Stores, 2012-2 U.S.T.C. ¶50,551, Certiorari Granted, 10/1/13

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Section: 3401Common Law Employers Referenced for FICA and FUTA Limit, Not Total Paid by Payroll Service Company

• Citation: Cencast Services, LLP v. United States, 2013-2 U.S.T.C. ¶50,511, 9/10/13


Section: 4980HEmployer Reporting and Shared Responsibility Payments Delayed Until 2015


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Section: 6051IRS Interim Guidance Explains Health Care Cost Reporting on W-2s, Exempts Certain Small Employers



Section: 6501Courts Split on Question of Who Must Have Intent to Commit Fraud to Trigger §6501(c)'s Unlimited Statute on Assessing Tax

• Citation: BASR Partnership v. United States, 2013-2 USTC ¶50,527, US Ct. Claims, 9/30/13, City Wide Transit, Inc. v. Commissioner, CA2, 2013-1 U.S.T.C. ¶50,211, reversing TC Memo 2011-279, 3/1/13

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Section: 6672Spouse Who Formed Corporation and Turned Over Control to Other Spouse Still Found Liable for Trust Fund Penalty

• Citation: Johnson v. United States, CA4, 2013 TNT 215-13, 11/5/13


Section: 6672Outside Accounting Firm Found Liable for Responsible Person Penalty for Trust Fund Taxes

• Citation: Erwin v. United States v. Coggin, et al, United States District Court for the Middle District of North Carolina, 2013 TNT 26-15, 2/1/13

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Section: 6672Just Following Orders of President of Entity Is Not A Defense Against Trust Fund Recovery Penalty

• Citation: Jimenez v. United States, 2011 TNT 246-7, U.S. District Court for Central District of California, 2012-1 U.S.T.C. ¶50,119, 12/19/11


Tax Update on Partnership IssuesTax Update for Financial Executives

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Section: 83Recipient of Nonvested Capital Interest Not Taxable on Undistributed Income Allocable to the Interesst

• Citation: Crescent Holdings, LLC v. Commissioner, 141 TC No. 15, 12/2/13


Section: 465Guarantee of LLC Debt by Member Provides At Risk Status Despite Right of Reimbursement from LLC

• Citation: CCA 201308028, 2/22/13

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Section: 704De Minimis Partner Exception to Substantiality Tests for Allocations Removed from Regulations

• Citation: TD 9607, 12/28/12


Section: 721Noncompensatory Options for Partnership Interest Regulations Issued

• Citation: Reg. §§1.721-2 , 1.761-3 and amendments of Reg. §§1.171-1, 1.704-1, 1.704-3, 1.1272-1, 1.1273-2 and 1.1275-4 , TD 9612,

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Section: 761Failure to Sign Operating Agreement Did Not Mean Taxpayer Was Not a Partner

• Citation: Cahill v. Commissioner, TC Memo 2013-220, 9/18/13


Section: 761Despite Agreements Claiming Entity Was Not a Partnership, Entity Was a Partnership and Income Was Domestic Production Income Flowing Through Partnership and Not Royalties

• Citation: CCA 201323015, 6/7/13

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Tax Update on S Corporation IssuesTax Update for Financial Executives

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Section: 179S Corporation Member of Controlled Group Allowed Full §179 Election

• Citation: INFO 2013-0016, 6/28/13

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Section: 1361Acceptable Liquidation Language for S Corporation LLC Operating Agreement Found in Letter Ruling Granting Inadvertent Termination Relief

• Citation: PLR 201351017, 12/20/13


Section: 1361Grant of Profits Interest in LLC Electing S Status Created Inadvertent Termination

• Citation: PLR 201337001, 9/13/13

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Section: 1361Despite Not Claiming Loss on Tax Return, Basis in S Corporation Stock Reduced for Taxpayer

• Citation: Marc Barnes v. Commissioner, CA DC, 2013-1 U.S.T.C. ¶50,267, 712 F.3d 581, 4/5/13


Section: 1362IRS Revises Procedures to Obtain Automatic Late S Election Relief


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Section: 1366No Economic Outlay for Back to Back Loans With Related S Corporations

• Citation: Broz v. Commissioner, 137 TC No. 5, 9/1/11, affd CA6, 2013-2 U.S.T.C. ¶50,488, 8/23/13


Section: 6501Shareholder Return Filed Before S Corporation Return Opened Up Six Year Statute of Limitations

• Citation: CCA 201333008, 8/16/13

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Tax Update on Estate and Trust IssuesTax Update for Financial Executives

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Section: 469Trustee's Hours of Participation as CEO of S Corporation Did Not Allow Trust to Be Deemed Materially Participating per IRS TAM

• Citation: TAM 201317010, 4/25/13

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Section: 2010Temporary Regulations Published on Estate Tax Portability Provisions

• Citation: TD 9593, 6/15/12


Section: 6048Fideicomiso (Mexican Land Trust) Found to Be Mere Agent of U.S. Taxpayer, Rather than a Trust

• Citation: Revenue Ruling 2013-14, 6/3/13 and PLR 201245003, 11/9/12

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Tax Update on IRS Examination, Penalty and Tax Practice IssuesTax Update for Financial Executives

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Section: FBAR ReportingOffshore Voluntary Disclosure Program Restarted by IRS With Higher Base Penalty, No Stated Deadline for Filing

• Citation: News Release IR-2012-5, 1/9/12, IRS website FAQ, 8/26/13

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Section: 31Voluntary Payment Designation That Designates Payment to Be Applied to Taxes of Another Taxpayer Must be Respected by IRS

• Citation: Dixon v. Commissioner, 141 TC No. 3, 9/3/13


Section: 446Relief Granted for Late Filing of Form 3115 After Accidentally Left Off Electronically Filed Tax Return

• Citation: PLR 201344001, 11/8/13

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Section: 4975IRS Considering Increasing Information Reporting on Hard to Value Assets Held by IRAs

• Citation: IRS Proposes Information Reporting Requirements for IRA Investments, CCH Federal Tax Day, November 14, 2013


Section: 4975Payment of Salary by ROBS Formed Corporation to IRA Beneficiary Found to Be Prohibited Transaction

• Citation: Ellis v. Commissioner, TC Memo 2013-245, 10/29/13

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Section: 4975Guarantee of Debt to Corporation Acquired by IRA in ROBS-Style Transaction Treated as a Prohibited Transaction, Stock Deemed No Longer Held in IRA

• Citation: Peek v. Commissioner, 140 TC No. 12, 5/9/13


Section: 6011TIGTA Reports on Growth of Tax Related Identity Theft and Problems With IRS Handling of Cases for Victims of Identity Theft

• Citation: TIGTA Report 2013-40-122, and TIGTA Report 2013-40-129, 11/7/13

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Section: 6061LLC Operating Agreement and Applicable State Law Must Be Consulted to Determine Who Has Authority to Bind Entity

• Citation: Chief Counsel Email 201316018, 4/19/2013


Section: 6212New Form Required to Report Change of Business Address or Responsible Party Effective January 1, 2014

• Citation: Form 8822-B, 8/23/13

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Section: 6223Taxpayer Failed to Provide Notice of Address Change Required by Regulations, IRS Under No Obligation to Mail FPAA to Other Address Using a "Good Faith" Effort

• Citation: Estate of Simon v. Commissioner, TC Memo 2013-174, 7/29/13


Section: 6330Taxpayer Who Ignored "Absurd" IRS Notice of Deficiency Lost Ability To Challenge Correctness of Liability in CDP Hearing

• Citation: Seifert v. Commissioner, Tax Court Order in Docket 24735-12 L, 10/18/13

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Section: 6332Third Party's Responsibilities, Defenses and Potential Liability With Regard to Compliance or Noncompliance With IRS Levy Outlined in Email

• Citation: CC Email 201350036, 12/13/13


Section: 6510Issues That Occur When LLC Taxed as Partnership Ends Up With a Single Owner Outlined in IRS Memorandum

• Citation: CCA 201351018, 12/20/13

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Section: 6501Supreme Court Finds Overstatement of Basis Cannot Trigger Six Year Statute, IRS Regulation Invalid

• Citation: United States v. Home Concrete & Supply, 2012 TNT 81-11, 2012-1 USTC ¶50,315, 4/26/12


Section: 6662No Substantial Authority or Reasonable Basis Found When Facts Distinguishable From Cited Authorities

• Citation: Sharp v. Commissioner, TC Memo 2013-290, 12/23/13

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Section: 7502Mailing Assembly Error by USPS Employee That Resulted in Mailing Document Back to Taxpayer's Employee Rather than Tax Court Not Found to Invalidate Timely Filing

• Citation: Glenn v. Commissioner, TC Memo 2013-33, 2/4/13


Section: 7502Failure to Obtain White USPS Receipt for Certified Mailing Fatal to Taxpayer's Attempt to Show $64,000+ Refund Claim Timely Filed

• Citation: Stocker v. United States, CA6, 2011-2 USTC ¶50,480, 705 F.3d 225, 1/17/13, cert denied 12/16/13

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Section: 7502CPA Firm's Failure to Use Acceptable Method to Mail Extension Requests Found to Preclude Taxpayer from Claiming Timely Extension Filed

• Citation: Tesoriero v. Commissioner, TC Memo 2012-261, 9/11/12


Section: 7502Taxpayer Using FedEx Delivery Service Not Listed in Notice 2004-83 Held Not to Have Timely Filed Tax Court Petition

• Citation: Scaggs v. Commissioner, TC Memo 2012-258, 9/10/12

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Section: 9100Relief Denied for Late 5 Year Carryback Election Due to Date Set by Statute and Not by Regulation

• Citation: PLR 201202005, 1/13/12

tax update for financial executives

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