Developing a uniform state approach to the new federal partnership audit regime
This column, the first of two parts, discusses issues states must consider and steps some have taken to align partnership audit rules with new federal rules.
Passthroughs
Charitable contribution substantiation procedures in statute not available in absence of regulations
A taxpayer’s substantiation requirements for a charitable contribution deduction were not met by information reported on the donee organization’s tax return.
Liability for payment of employment taxes when using a PEO
Chief Counsel Advice was issued regarding who is ultimately liable for payment of employment taxes when using a professional employment organization.
Tax Court denies ordinary abandonment losses in taxpayers’ disposition of partnership interests
Tax Court affirmed the IRS’s decision to recharacterize loss of a partnership disposition from ordinary to capital when the taxpayers failed to provide evidence of abandonment.
IRS permits partnership basis election without partner’s signature
To ease the regulatory burden on partnerships, the IRS announced that it is eliminating the requirement that partnership elections under Sec. 754 be signed by a partner.
Practitioner’s incorrect change to passive status costly
A preparer’s improper change of status of income from active to passive is costly for taxpayers.
Dissolution of an LLC
Procedures for concluding the affairs of the LLC should be included in the operating agreement.
IRS reissues centralized partnership audit rules
The IRS reissued proposed regulations governing the centralized audit rules, which assess and collect tax at the partnership level.
Partner’s bonus was not a partnership distribution
A bonus payment to a hedge fund manager was payment for services outside her capacity as a partner.
Tax Court allows full meal deduction for NHL team’s away games
Pregame meals provided to Boston Bruins players and personnel before away games qualify as a de minimis fringe benefit.
How the death of a partner could affect a partnership’s year end
Partnerships must reevaluate their current fiscal year when a partner dies, since the estate may have a different year end than the individual partner.
The importance of tracking AAA and E&P in transactions involving S corps.
Tracking these accounts is important if an S corporation enters into certain transactions such as redemptions, liquidations, reorganizations, or corporate separations.
Allocating S corp. losses to acquiring and terminating shareholders
An S corporation’s election to use specific accounting can alter the allocation of passthrough items in some cases.
Temporary disguised-sale regulations raise concerns
Should the IRS consider recognizing a contributing partner’s economic risk of loss when the regulations are finalized?
Penalties for inconsistent reporting subject to deficiency procedures
Where there are no adjustments to partnership items, a taxpayer could not hide behind the Sec. 6230(a)(2)(A)(i) exclusion.
New Sec. 987 regulations affect partnerships
The 2016 regulations put partners on notice that Sec. 987 principles generally apply to partnership assets and liabilities.
A PATH to savings
This article examines the PATH act provisions and other developments favorable for taxpayers.
Boston Bruins can deduct full cost of meals for team’s away games
The Tax Court held that the owners of the Boston Bruins could deduct the full cost of their team’s pregame meals for away games as a de minimis fringe benefit.
Centralized partnership audit rules are reissued in proposed form
The IRS reissued proposed regulations governing the centralized audit rules, which assess and collect tax at the partnership level.
Final regs. address qualifying income exception for certain publicly traded partnerships
This item explains how the final regulations differ from the proposed regulations.
