July 2013

July 31, 2013

Final Regs. Clarify Who Is Subject to 50% Limit on Meal and Entertainment Expenses

The IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses under Sec. 274(n).

July 29, 2013

Comments Requested on Proposed Net Investment Income Tax Form

The IRS published a notice and request for comments from taxpayers on a new dual-purpose form that will be used by individuals and trusts and estates to compute the new 3.8% tax and then to report the tax.

July 26, 2013

New Method for Determining Who Gets Sec. 199 Deduction Under Contract Manufacturing Arrangements

The IRS issued new guidance regarding how to determine which taxpayer is entitled to claim the Sec. 199 domestic production activities deduction in a contract manufacturing arrangement.

July 24, 2013

Rules for Deferral of Income From Gift Card Sales Clarified

The IRS issued guidance clarifying that taxpayers that sell gift cards can defer recognizing income from the sale of gift cards redeemable by an unrelated third party until the year after the payment is received.

July 18, 2013

Identity Theft Protection Process at IRS Needs Improvements, TIGTA Says

TIGTA recently audited the IRS’s Taxpayer Protection Program to assess how the Service is handling the explosive growth in tax return identity theft in recent years.

July 17, 2013

July 22 IRS Furlough Day Canceled

The IRS has canceled its scheduled furlough day for Monday, July 22, acting IRS chief Danny Werfel announced.

July 12, 2013

FATCA Deadlines Are Postponed for Six Months

The IRS said it was delaying for six months some of the deadlines for implementing FATCA.

July 10, 2013

IRS Provides Details About Postponed Employer Health Care Penalty and Information Reporting

The IRS made official the postponement of the large-employer health care penalty and certain information reporting rules that had been informally announced July 2.

July 9, 2013

Professional Poker Player Goes Bust in Tax Court

A professional poker player who was also a civil and geotechnical engineer and a laundromat owner lost in Tax Court.

July 2, 2013

Final Rules on Acceleration of COD Income Deferral Are Issued

The IRS issued final regulations on the rules to accelerate COD income that taxpayers elected to defer over a five-year period when an applicable debt instrument was reacquired by the issuer or a related party in 2009 or 2010.

July 2, 2013

Treasury Postpones Employer Health Care Penalty, Information Reporting for One Year

Large employers who fail to provide minimum health coverage for employees will not be subject to the shared-responsibility penalty until 2015 after Treasury announced that it would delay certain provisions of 2010’s health care legislation.