August 2015

August 27, 2015

IRS Proposes Rule Updates and Clarifications to Penalty for Nondisclosure of Reportable Transactions

The IRS issued proposed regulations that would update and clarify the rules regarding the penalty for failure to disclose reportable transaction information.

August 27, 2015

Benefits and Burdens Would No Longer Determine Sec. 199 Deduction

The IRS has proposed removing the benefits-and-burdens-of-ownership rule for determining which party to a contract manufacturing agreement should get the Sec. 199 domestic production activities deduction.

August 27, 2015

Benefits and Burdens Would No Longer Determine Sec. 199 Deduction

August 26, 2015

Constructive Presence Would Count Under Proposed Residency Rules

The IRS issued proposed regulations that, for purposes of establishing bona fide residency in a U.S. territory, would allow individuals additional days of “constructive presence” in the territories if certain conditions are met.

August 26, 2015

Regulations Determine Allocation of Wages for Domestic Production Activities Deduction

The new rules govern the Sec. 199 deduction when two taxpayers employ the same employees.

August 21, 2015

IRS Announces Delayed Due Date for New Estate Basis Reporting Rules

The IRS issued guidance delaying the due date for compliance with the recently enacted rules that require consistent basis reporting between an estate and anyone acquiring property from the estate.

August 17, 2015

Get Transcript Data Breach More Than Three Times as Big, IRS Announces

The IRS alerted the public that an additional 220,000 taxpayers had their tax return information compromised in the Get Transcript database breach it announced in May.

August 14, 2015

New Law Imposes Immediate Estate Basis and Reporting Requirements

The highway funding bill made changes to the Internal Revenue Code that affect estates and beneficiaries, including new reporting rules.

August 13, 2015

Identity Theft Protection Services Provided After a Data Breach Are Not Taxable

The announcement applies to anyone whose personal information may have been compromised in a data breach, including customers, employees, and others.

August 12, 2015

Temporary Regulations End Automatic Extension for Forms W-2

In a move designed to fight taxpayer identity theft and tax fraud, the IRS will eliminate automatic extensions of time to file forms in the W-2 series, starting in 2017.

August 11, 2015

Final Regulations Prevent Manipulation of Trust Uniform Basis Rules to Avoid Gain

The regulations are designed to prevent transactions in which trust grantors receive the value of their term interest without recognizing taxable gain.

August 10, 2015

Ninth Circuit Holds Mortgage-Interest Deduction Applies on a Per-Taxpayer Basis

Unmarried co-owners of two qualified residences each qualified for mortgage-interest deductions on up to $1.1 million of acquisition indebtedness the Ninth Circuit Court of Appeals held.

August 6, 2015

Notice Contains Rules on Gain Recognition for Property Transferred to Foreign Partnerships

The IRS intends to issue regulations under Sec. 721(c) to ensure that a U.S. person recognizes gain either immediately or periodically when it transfers certain property to a partnership that has foreign partners related to the transferor.

August 4, 2015

No Deduction for Unpaid Service Fees Related to Ponzi Scheme

The Tax Court disallowed a taxpayer’s claimed loss, which consisted of payments owed him for services he provided to a company that was part of a Ponzi scheme.