July 2015

July 31, 2015

Regulations Determine Partnership Distributive Shares When Ownership Changes

The IRS issued final regulations on determining partners’ distributive shares of partnership items when a partner’s interest varies during the partnership’s tax year.

July 31, 2015

Return Due Dates Changed in Highway Funding Bill

The short-term highway funding extension passed by the Senate contains several important tax provisions.

July 30, 2015

New Safe Harbor Governs Accounting for Ratable Service Contracts

Qualifying accrual-basis taxpayers will be allowed to treat economic performance of certain service contracts as occurring on a ratable basis under a safe harbor introduced by the IRS.

July 28, 2015

Tax Court Invalidates Stock-Based Compensation Rule in Cost-Sharing Agreements

The Tax Court held that Regs. Sec. 1.482-7(d)(2), requiring entities to share stock-based compensation costs under qualified cost-sharing agreements, failed to meet the reasoned decision-making standard and was invalid.

July 23, 2015

Regulations Provide Guidance on Proper Place to File Refund Claims

The new rules generally require taxpayers filing claims for refund or credit to file their claim with the IRS service center at which the taxpayers currently would be required to file a tax return for the type of tax to which the claims relate.

July 22, 2015

Proposed Rules Define Disguised Payments for Services in Partnerships

The IRS will apply a six-factor test to determine whether payments to partners are disguised payments for services under proposed regulations.

July 17, 2015

Revised Form 3115 Issued in Draft Form

The IRS has posted a draft revised version of Form 3115, Application for Change in Accounting Method, on its website.

July 16, 2015

Majority of CPAs Polled Had Clients Victimized by Tax ID Theft This Year

Many CPAs reported it was difficult or very difficult to resolve the issue with the IRS, echoing recent findings by the Taxpayer Advocate Service.

July 15, 2015

National Taxpayer Advocate: IRS Falling Down on the Job of Helping Identity Theft Victims

During some of the busiest weeks of tax season, less than one caller in 10 to the IRS’s Taxpayer Protection Program phone line was able to reach IRS staff for assistance, according to Nina Olson, the national taxpayer advocate.

July 13, 2015

Emerging Tax Issues Cause Due-Diligence Problems

From foreign accounts to health care, from marijuana businesses to captive insurance, emerging tax issues are presenting practitioners with thorny due-diligence problems.

July 9, 2015

Defined Benefit Plans to Be Prohibited From Replacing Annuities With Lump-Sum Payments

The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.