Document summaries for the week of Aug. 12, 2019

EMPLOYEE BENEFITS

IRS issues monthly corporate yield curve and segment rates

The IRS issued guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under Sec. 417(e)(3), and the 24-month average segment rates under Sec. 430(h)(2). In addition, the IRS provided guidance as to the interest rate on 30-year Treasury securities under Sec. 417(e)(3)(A)(ii)(II), as in effect for plan years beginning before 2008, and the 30-year Treasury weighted average rate under Sec. 431(c)(6)(E)(ii)(I), as reflected by the application of Sec. 430(h)(2)(C)(iv). Notice 2019-48 (8/13/19).

 

INDIVIDUALS

Court denies taxpayer’s request for abatement of interest

The Tax Court denied a taxpayer’s request for abatement of interest relating to an audit of his 1999 tax return. The IRS initiated its audit (in writing) on Aug. 11, 2011, and therefore the taxpayer was not entitled to abatement under Sec. 6404(e)(1) for any period before that date, even if the IRS had initially contacted him in writing about the matter years earlier. Adams, T.C. Memo. 2019-99 (8/12/19).

Street vendor who did not establish amount of earned income is not entitled to earned income tax credit

The Tax Court held that a taxpayer, a self-employed New York City street vendor, was not eligible for the earned income tax credit (EITC) for 2014 and 2015 because she did not establish the amount of her earned income for those years and provided no evidence on which the court could estimate the amounts of her income and expenses. The court rejected the taxpayer’s argument that she had a constitutional right to receive a tax refund, noting that she had no right to a refund if she had not met the statutory requirements for the EITC. Doucoure, T.C. Summ. 2019-20 (8/12/19).

 

IRS PROCEDURE

Alimony tax gap has grown, TIGTA reports

The Treasury Inspector General for Tax Administration (TIGTA) issued a report on the alimony “tax gap” — the difference between alimony deductions claimed and alimony income reported — which grew 38% between 2010 and 2016. TIGTA Rep’t No. 2019-40-048 (8/13/19) (see related news story).

Newsletter Articles

TECHNOLOGY

2018 tax software survey

Among CPA tax preparers, tax return preparation software generates often extensive and ardent discussion. To get through the rigors of tax season, they depend on their tax preparation software. Here’s how they rate the leading professional products.

DEDUCTIONS

Qualified business income deduction regs. and other guidance issued

The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.