June 2011

June 28, 2011

IRS Addresses Tax Treatment of Tax-Free Exchanges of Annuities

The IRS has given taxpayers guidance on the tax treatment of exchanges of annuity contracts under Secs. 72 and 1035.

June 23, 2011

IRS Raises Standard Mileage Rate for Second Half of 2011

In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1.

June 23, 2011

IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Returns

Final regulations set the time for automatic extensions of partnership, trust and estate income tax returns at five months (T.D. 9531). Under this rule, the extended returns and Schedules K-1 for partners and beneficiaries will generally be due September 15.

June 23, 2011

House Passes Bill with Tax Patent Provision, Sends Back to Senate

The House of Representatives passed the America Invents Act (H.R. 1249), which includes a provision intended to stop the granting of patents for tax strategies.

June 22, 2011

IRS Publishes Interim Guidance on Stock Basis Reporting

On June 22, the IRS issued interim guidance on issues relating to the basis of stock subject to broker reporting.

June 21, 2011

IRS Suspends Foreign Asset, Passive Foreign Investment Company Information Reporting Rules

The IRS announced that it is suspending the information reporting requirements for certain individuals with foreign assets and shareholders of passive foreign investment companies (PFICs) under Secs. 6038D and 1298(f) (Notice 2011-55)

June 16, 2011

IRS Further Extends Deadline for Certain 2009 and Earlier FBARs

The IRS has further extended the deadline for certain persons to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for 2009 and earlier years (IRS Notice 2011-54). The new filing deadline is November 1, 2011. The extension applies to persons with signature authority over a foreign financial account, but no financial interest in the account.

June 14, 2011