Tag Archives: irs
Charitable Conservation Easements Found A Friend In The 11th Circuit
Many Tax Court cases have been decided based upon an obscure Treasury Regulation, upholding the IRS’ 100% disallowance of charitable conservation easement deductions. The 11th Circuit struck down the Regulation, holding that it is “arbitrary and capricious”. A rare win for taxpayers. The Bloomberg article attached below was written by our own attorney, Nancy O. Kuhn. A Rare Victory For Taxpayers ... Read More
TAGGED: irs, tax, Treasury Regulation, 11th Circuit, taxpayers
Client Alert: Exempt Organizations Engaged in Illegal Activities – Will They Be Held Accountable?
In the aftermath of the January 6, 2021 insurrection, the focus has shifted to the entities that may have financed the insurrection. Thousands of individuals travelled to Washington, D.C. for the rally and insurrection, and news reports have alleged that charitable organizations may have assisted in funding the participants’ expenses. On January 13, 2021, members of the Ways and Means ... Read More
Client Alert: Few Tax Exempt Organizations Examined By the IRS
The Treasury Inspector General for Tax Administration (“TIGTA”) recently issued a report about its review of the Internal Revenue Service’s (“IRS”) examination of tax-exempt organizations. (“TIGTA Report”) The TIGTA Report analyzed examinations conducted by the IRS during fiscal year 2019. TIGTA found that there are many obstacles to overcome in order for IRS’ examiners to detect noncompliance by ... Read More
TAGGED: irs, tax exempt organizations, nonprofits, TIGTA, Form 990
Client Alert: Employers Liable for Deferred Payroll Taxes
The Internal Revenue Service has issued guidance for employers who, in response to the President’s Executive Memorandum dated August 8, 2020, choose to defer payroll taxes for employees from September 1, 2020, through December 31, 2020. In Notice 2020-65, issued August 28, 2020, the IRS specified that the deferred payroll taxes are due to the IRS prior to ... Read More
TAGGED: irs, Tax Law, Payroll Taxes, Notice 2020-65
Client Alert: Payment Protection Program Grants May Result in Unexpected Taxable Income
The Paycheck Protection Program (“PPP”) enacted through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) is the government relief program that provided loans to small businesses to cover payroll, rent or mortgage payments and utilities. The loan may be forgiven under certain prescribed circumstances. The issue for recipients now is how to account for the funds. There ... Read More
Client Alert: Economic Impact Payments & The IRS’ Return Policy
In the past several weeks the IRS has issued millions of checks to certain individuals, compliments of a Congress which is desperately trying to keep our economy running. On May 6, 2020, the IRS issued several new Q&A’s on its website addressing what recipients should do if an Economic Impact Payment (“EIP”) is received and the name on the check is ... Read More
TAGGED: irs, COVID-19, Economic Impact Payments
Client Alert: Sorting Through The Various COVID-19 Relief Programs and Conflicting Guidance on Loan Forgiveness
Small businesses and charities may be sorting through the various programs recently enacted and signed into law, trying to figure out which one is best. While each business or charity is unique and no one option is best for all, bets can be hedged and more than one program may be utilized. The Paycheck Protection Program (“PPP”) enacted through the ... Read More
Client Alert: Internal Revenue Service Suspends Certain Collection Actions
On March 25, 2020, the Internal Revenue Service (“IRS”) introduced its “People First Initiative” in which it will suspend certain tax collection activities currently ongoing and limit the number of new collection actions. These limitations will run initially from April 1, 2020, through July 15, 2020. The implication from the IRS is that the July 15th end date ... Read More
TAGGED: irs, People First Amendment
Conservation Easements: Saving Our Green Spaces or Illegal Tax Shelters?
A property owner who donates an easement of his or her property to a charitable organization for conservation or historical purposes is permitted to take a charitable deduction for the value of that donated property easement. The statutory requirements are set forth in Internal Revenue Code §170(h). There are many conservation easements that are fulfilling the intent of the legislation ... Read More
Tax Planning for Nonresident Aliens Who Own US Property
Individuals who are not citizens or residents of the United States, known as nonresident aliens (NRA), need to be aware of the U.S. estate and gift taxes that will be applicable to their U.S. fixed assets, for example, U.S. real estate. If an NRA owns fixed assets located in the ... Read More
TAGGED: real estate, irs, nonresident aliens, property, qdot, taxes, trust & estates
Tax Treaty Interpretation: Nonjusticiable Political Question?
The U.S. Court of Appeals for the District of Columbia reversed and remanded the lower court’s decision in a case involving the interpretation of the US-Switzerland tax treaty. In Starr International Company, Inc. v. United States, No. 1:14-cv-01593 (D.C. Cir. Dec. 7, 2019), Starr sought a tax refund for a portion of the 30 percent withholding taxes automatically ... Read More
Forgiven Debt – Taxable to the Borrower?
Generally, if a borrower is required to pay a sum certain at a specific time, the obligation is considered “debt” under the Internal Revenue Code. If the lender forgives a portion, it has “cancelled” the debt and the borrower must declare and take into income the dollar amount cancelled. A lender may unilaterally decide that a debt is not collectable ... Read More
TAGGED: bankruptcy, irs, taxes, 2016 taxes, 2017 taxes, chapter 11, chapter 7, debt, Federal taxes, tax