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Category: Tax Law

RECENT CHANGE IN FBAR DUE DATE

RECENT CHANGE IN FBAR DUE DATE

Recent legislation will affect the due date for filing FinCEN Form 114. This is the annual form filed by folks with a financial interest in or signature authority over certain foreign financial accounts. Historically, the form has been due by June 30 following the end of the year in question. Under the new law, for returns for tax years beginning after December 31, 2015, the due date will be the following April 15, with a six month extension available.

SOME IMPORTANT TAX PROVISIONS OF NEW HIGHWAY ACT

SOME IMPORTANT TAX PROVISIONS OF NEW HIGHWAY ACT

~Basis overstatement will hereafter be deemed the equivalent of omission of income for purposes of the 6 year statute of limitations. Thus, the Supreme Court decision to the contrary in Home Concrete & Supply LLC has now been superseded. ~Changes in filing deadlines for certain entities (effective for tax years beginning after December 31, 2015): # (Calendar year) partnership filing date changed to March 15 # (Calendar year) “C” corporation filing date changed to April 15

IRS SIMPLIFIES SECTION 83 ELECTION PROCEDURES

IRS SIMPLIFIES SECTION 83 ELECTION PROCEDURES

In a recent private letter ruling, IRS acknowledged that the failure to attach a copy of a Section 83(b) election to the tax return didn’t negate the election as long as the election was, in fact, filed with IRS within 30 days of the date of transfer, which has long been the rule. And in recently proposed regulations, IRS has further formalized this new stance in proposing elimination of the requirement that taxpayers attach a copy of the election to…

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NO EARLY DISTRIBUTION PENALTY WAIVER DESPITE “FINANCIAL HARDSHIP”

NO EARLY DISTRIBUTION PENALTY WAIVER DESPITE “FINANCIAL HARDSHIP”

In the recent Kott decision (TC Summary Opinion 2015-42), the Tax Court took a hard line in the case of a 401(k) distribution to a taxpayer under age 59-1/2 even though he used the money to catch up on his delinquent mortgage payments in an effort to avoid foreclosure. The Code does provide for certain exceptions to the application of the penalty, but Courts have held that those exemptions do not include a general “financial hardship” situation, even though such…

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“EXTENDERS” IN LIMBO

“EXTENDERS” IN LIMBO

As Congress contemplates its usual August hiatus, taxpayers wonder what fate will befall late 2014 “extender” provisions of the law which won’t apply to 2015 unless action is taken. Among the more important provisions whose 2015 fate is still unlearned are: ~Deduction for state and local sales taxes ~Deduction for mortgage insurance premiums treated as qualified interest ~Exclusion from gross income of up to $2 million of discharged principal residence indebtedness ~Deduction of up to $500,000 in cost of certain…

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