Key Takeaways
- IRS Procedure
- Tax on Super-Rich
- Related-Party Basis-Shifting
- Boomer Candy
- Tax Court
- TikTok
- Sports
- Conservation Easements
- In the Courts
- What Day is it?
IRS Procedure
IRS Adds Audit Updates to Individual Online Accounts – David van den Berg, Law360 ($):
Individuals under examination no longer need to call the agency to get updates on their audits, the IRS and U.S. Department of the Treasury said in a statement. New account features also include a lien payoff calculator taxpayers can use to get lien details and calculate payoff amounts, the agencies said. Taxpayers can also see the status of their refunds during processing as part of a comprehensive overview of their account details, according to the statement.
IRS Prioritizes Shorter Wait Times for Identity Theft Cases – Lauren Loricchio, Tax Notes ($):
During a July 24 press call, Werfel said that while the process for resolving identity theft is complicated, that isn’t an excuse for the delays.
Tax on Super-Rich
G20 finance ministers discuss a global tax on the super-rich – ElEonore Hughes and Gabriela SA Pessoa, Washington Post:
According to the proposal before the Group of 20, individuals with over $1 billion in total assets would be required to pay the equivalent of 2% of their wealth in income tax.
Related-Party Basis-Shifting
Partnership Basis-Shifting Proposal Panned by Tax Pros – Kristen A. Parillo, Tax Notes ($):
In comment letters that called the proposal unworkable, “breathtaking in scope,” and contrary to legislative intent, several stakeholders urged the government not to move forward with the guidance outlined in Notice 2024-54, 2024-28 IRB 24.
Boomer Candy
‘Boomer Candy’ Funds Are Hot. The Taxes Are Not. – Laura Saunders, Wall Street Journal.
“Investors are pouring dollars into exchange-traded funds that offer a dreamy combination of stock exposure and fat income payouts as high as 12%. But next year they could wake up to a hard reality—tax bills that are confusing or higher than expected.”
Tax Court
Senate Confirms One Tax Court Nominee as Panel Advances Others – Cady Stanton and Doug Sword, Tax Notes ($):
The Senate confirmed Kashi Way to a 15-year term on the Tax Court July 25 by a vote of 79 to 16, while the Senate Finance Committee advanced three more nominees — Jeffrey S. Arbeit, Cathy Fung, and Benjamin A. Guider III — during a markup.
Senate Confirms First Tax Court Judge Since 2020 – Asha Glover, Law360 ($).
“By a 79-16 vote, the Senate confirmed Kashi Way, legislation counsel at the Joint Committee on Taxation, to a 15-year term as a judge on the Tax Court.”
First Biden Pick to US Tax Court Bench Confirmed by Senate – Chris Cioffi, Bloomberg ($).
“Kashi Way became the first US Tax Court judge nominated by President Joe Biden to be confirmed to its 19-seat bench, as the Senate Finance Committee primed the judge confirmation pump with three more nominees.”
TikTok
TIGTA Knocks IRS Compliance with TikTok Ban – Benjamin Valdez, Tax Notes ($):
The Treasury Inspector General for Tax Administration, in a report released July 25, found gaps in the IRS’s compliance with Office of Management and Budget regulations requiring federal agencies to limit the use of TikTok by contractors, particularly with social media and recruiting contracts.
Sports
Even if Giants Aggressively Sell, Go-For-Broke Season’s Luxury Tax Implications are Inescapable – Andrew Baggarly, New York Times.
“It stands to reason that the San Francisco Giants will become active sellers before Tuesday’s trade deadline. It also stands to reason that one of their prime organizational goals should be to reduce enough payroll to slip under the $237 million competitive balance tax threshold.”
Conservation Easements
IRS, Zaxby's Co-Founder To Settle $43M Easement Suit – Kat Lucero, Law360 ($).
“The Internal Revenue Service agreed to settle a $43 million valuation dispute over a conservation easement donated by the co-founder of the Zaxby's restaurant chain and his wife, prompting a Georgia federal court Thursday to cancel next month's anticipated jury trial.”
In the Courts
Teacher Not Entitled to Business Deductions, Tax Court Says – Anna Scott Farrell, Law360 ($).
“A teacher who told the U.S. Tax Court that she had self-published six books and was passionate about conducting missing persons research was denied business deductions for the activities Thursday after the court determined she wasn't primarily trying to turn a profit.”
Court Calls Woman’s ‘Writer’ Business Expenses a Work of Fiction – Mary Katherine Browne, Tax Notes ($).
“The Tax Court disallowed a taxpayer’s business expense deductions after determining that she didn’t engage in writing or research activities for profit.”
What Day is it?
Its National Aunt and Uncle Day! Grab your favorite one and give them a hug (or a phone call)!
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