Document summaries for the week of Nov. 11, 2019

Tax document summaries for the week of Nov. 11–15, 2019, covering employee benefits, individuals, IRS procedure, and more.

EMPLOYEE BENEFITS

Nondiscrimination relief for certain defined benefit plans

The IRS provided additional temporary nondiscrimination relief for closed defined benefit plans that generally meet the eligibility conditions in Notice 2014-5. The notice provides that if a plan satisfies specified conditions, then the plan is deemed to have satisfied certain of the nondiscrimination testing requirements relating to benefits, rights, and features. Notice 2019-60 (11/13/19).


INDIVIDUALS

IRS updates guidance for taxpayers with certain deductible expenses to reflect TCJA changes

The IRS issued guidance that modifies Rev. Proc. 2010-51 to reflect certain changes enacted in the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, and that provides that a taxpayer cannot use the business standard mileage rate to claim a miscellaneous itemized deduction during tax years when the miscellaneous itemized deduction is suspended. The guidance also modifies Rev. Proc. 2010-51 to suspend deductions for moving expenses, unless the taxpayer is a member of the armed forces on active duty who is moving pursuant to military orders and who is moving to a permanent change of station. Rev. Proc. 2019-46 (11/14/19) (see related news story).

 

IRS PROCEDURE

IRS announces disciplinary actions

The IRS Office of Professional Responsibility announced recent disciplinary sanctions against attorneys, CPAs, and enrolled agents. Announcement 2019-10 (11/12/19).

IRS stepping up syndicated conservation easement enforcement

The IRS announced that it is increasing enforcement actions for syndicated conservation easement transactions, a priority compliance area for the agency. IR-2019-182 (11/12/19).

 

PARTNERSHIPS

Partnership’s reporting of some gain amount precludes extension of statute to six years

The Tax Court held that the period for assessment for a partnership’s 2000 tax return was not extended to six years under Secs. 6501(e)(1)(A) and 6229(c)(2) because, while the return reported only 19.99% of the gain on a post-sale liquidation rather than the 100% that should have been reported, the return did not “omit” an item of gain entirely but rather reported an incorrect amount. The court thus granted the partnership’s motion for summary judgment since the final partnership administrative adjustment issued by the IRS was untimely. Beverly Clark Collection, LLC, T.C. Memo. 2019-150 (11/14/19).

Newsletter Articles

50th ANNIVERSARY

50 years of The Tax Adviser

The January 2020 issue marks the 50th anniversary of The Tax Adviser, which was first published in January 1970. Over the coming year, we will be looking back at early issues of the magazine, highlighting interesting tidbits.

TAX RELIEF

Quirks spurred by COVID-19 tax relief

This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.