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.
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).
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 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).
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).
Business meal deductions after the TCJA
This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.
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.