Federal Tax Update Podcast

This week we look at: Glass Warehouse: unsubstantiated shareholder "subcontractor" fees disallowed; reliance on CPA fails Employee Retention Credit claim fails: advisory guidance and voluntary changes are not suspensions Rev. Proc. 2026-35 sets 2027 inflation-adjusted amounts: brackets, deductions, credits, and penalties Tax Court taxes lapsed whole life policy gain, but strikes the penalty for la...

This week we look at: Rev. Rul. 2026-22: 401(h) surplus assets may fund active medical benefits for employees age 59½ and over Tax Court sustains revocation of a social club's exemption where gas royalties exceeded 50% of receipts Tax Court denies whistleblower award because the IRS acted on a Senate report, not the claim

This week we look at: Automatic refunds for adoption credit carryforwards claimed on 2025 returns Tax Court rejects two syndicated easement deals and applies 40% gross valuation penalties IRS withdraws the per se device rule and two anti-abuse rules from 2016 § 355 proposed regs New law lets ministers revoke prior Form 4361 SECA exemptions beginning in 2029 Rev. Proc. 2026-34 rewrites EPCRS: broad...

This week we look at: Congress passes H.R. 9496, creating new IRC §7511 relief for hostages and wrongful detainees. Rev. Proc. 2026-20 gives investment trusts holding digital assets a safe harbor for staking. California OTA rejects FTB's hot asset theory for nonresident partnership interest sales. Rev. Rul. 2026-18 publishes the SIFL rates for second-half 2026 employer aircraft flights. Tax Court...

This week we look at: Informal claim and COVID-19 disaster relief save an untimely-looking IRA refund suit in Singh. IRS recasts "Section 351 conversion" ETF transactions as taxable exchanges in Rev. Rul. 2026-20. Proposed regs implement a four-year installment election for farmland sales to young farmers. A corporate Offer-in-Compromise caps an officer's Trust Fund Recovery Penalty liability in A...

This week we look at: Tax Court Applies Equitable Tolling to BBA Partnership Petition Deadlines -- Kings Road Property District Court Voids VIBIR's Net Investment Income Tax Assessment -- Perkins IRS Notice 2026-55 Seeks Comments on Opportunity Zone Rules for Housing Developers Hurricane Michael Casualty and Charitable Deductions Fail for Lack of Substantiation -- Williams Treasury Raises the Esta...

This week we look at: Tax Court Warns of AI Drafting Pitfalls in a CDP Lien Withdrawal Case -- Moore Altering the Perjury Jurat Dooms a Refund Suit -- Johnson v. IRS IRS Extends the Involuntary Conversion Period for Drought-Hit Livestock Sales H.R. 9500 Would Restore and Expand Personal Casualty and Theft Loss Relief Second Circuit Rejects Form Over Function for SECA Tax -- Soroban Capital Partner...

This week we look at: Final Regulations Restore the Car Loan Interest Deduction Under T.D. 10054 Fourth Circuit Affirms $2.9M Willful FBAR Penalty -- United States v. Rund Tax Court Clarifies BBA Extension Mechanics -- Katanga Properties Treasury Proposes Sweeping QOF Certification and Reporting Regulations Proposed Regs Allocate Foreign Source Deductions Under Sections 250 and 904 Unrestricted $1...

This week we look at: Federal Circuit Bars Treaty FTCs Against the NIIT -- Bruyea and Christensen Financial Disability Tolling and Third-Party Authorization -- Goldman v. United States OIC Public-Policy Rejections Upheld -- Filipowski v. Commissioner Substantiation and Alter-Ego Doctrine -- Hank Risan v. Commissioner Codifying Racial Nondiscrimination for Private Schools -- Proposed Section 1.501(...

This week we look at: Zero-Return Form 1065 Filings and the Beard Test (IRS CCA 202634014) Full Payment Rule & Presumption of Correctness -- Pellegrino v. United States Pro Rata Share Determinations Under OBBBA -- Proposed Regulations (REG-115646-25) Treaty Exclusivity for Pooled Investments -- South Saskatchewan Community Foundation v. U.S.

This week we look at: Form 1041-A Relief for Passthrough Charitable Deductions (REG-109082-25) Vested Development Rights & Easement Valuation — Malibu Valley Land v. Commissioner First Circuit Bars Equitable Tolling of Section 6213(a) — Kyick Holdings v. Commissioner PRWORA Immigration Restrictions on Refundable Credits (REG-119882-25) Single-Employer DB Pension Funding Proposed Regulations (REG-1...

This week we look at: Unpacking the Saver's Match: Technical Guidance and Operational Frameworks Under Notice 2026-48 Harmonizing Section 3406 Backup Withholding with Section 6050W De Minimis Reporting Thresholds The High Bar for Equitable Tolling in Tax Practice: The Eighth Circuit's Final Ruling in Boechler, P.C. Employer Contributions to Trump Accounts and Nondiscrimination Rules under REG-1013...

This week we look at: Transitioning Foreign Tax Allocations and Implementing the Ten Percent Credit Disallowance Under Section 960(d)(4) Trustee-to-Trustee Transfers of Inherited IRAs Through an Estate: Technical Analysis of PLR 202631001 Federal Courts Lack APA Jurisdiction Over Foreign Gift Penalty Disputes: The Adequate Alternative Remedy Barrier Sourcing Executive Termination Payments: Analyzi...

This week we look at: IRS Reinstates Tax Deferral on Variable Annuity Term Certain Options: Reconsideration and Reversal in PLR 202630002 Understanding the ERC Pleading Standard: Federal Claims Court Deferral in I Health and Life Insurance Services Predecessor Losses, the Lonely Parent Rule, and the Limits of Economic Reality: Analysis of HBM Holdings Co. v. Commissioner Double Books and Disguised...

This week we look at: Valuation of Remainder Interest Gifts Upon Trust Termination: State Law and Net Gift Adjustments in Lewis v. Commissioner Revenue Procedure 2026-26: Technical Overview of 2027 Indexing Adjustments for Premium Tax Credits and Affordability Standards Limitations of Interest Abatement Claims Under I.R.C. § 6404(e)(1) in the Context of ERC-Driven Amendments Section 6015(c) Relief...

This week we look at: Partnership Recourse Rules: Conditional DROs will not establish EROL under § 1.752-2. Mileage Rate Adjustment: Business standard mileage rate rises to 76 cents on July 1, 2026. Business Tax Account: Modernized self-service portal expands features but requires active annual maintenance. Litigation Legal Fees: FCRA settlements are taxable gross income without above-the-line ded...

This week we look at: Transitioning from First Time Abate (FTA) to Automatic Exemption from Penalty (AEP) Strict Enforcement of Tax Refund Statutes of Limitations Employee Retention Credit (ERC) Refund Claims & Pleading Standards Pandemic-Era Persistence of New York's Convenience of the Employer Rule Invalidity of Treasury Regulation Section 1.951A-2(c)(5) Non-Shareholder Capital Contributions vs....

This week we look at: Section 7508A(d) and Interest on Pre-COVID-19 Disaster Tax Deficiencies The Soroban Capital Partners SECA Tax Controversy Pleading Requirements for the Employee Retention Credit (Tapestry Senior Housing) ERC Causation and the Essential Business Hurdle (RAAM Construction) The Section 530A Transfer Tax Safe Harbor (Rev. Proc. 2026-25) Penalty Supervisory Approval Verification i...

This week we look at: Nominal S Corporation Ownership and the Abuse Exception Recapping the ERC via Section 7405 Civil Actions Constructive Dividends, Formalities, and Civil Fraud CDP Hearings, Offer-In-Compromise, and RCP Calculations Professional Responsibility and Responsible AI Use Rigorous Proof for ERC "Partial Suspension" Claims

This week we look at: Relief from Ineffective S Corporation and QSub Elections Procedural and Jurisdictional Limits in Challenging IRS Guidance Medicaid Gross Receipts, Cohan Estimations, and Professional Reliance Standards and Deceit in Supervised Release Transitional Guidance on Qualified Opportunity Zones

This week we look at: Application of New Section 68 to Trusts and Estates Assessing the Risks of Hindsight in Late § 475(f)(1) Elections The Eradication of the 5% Safe Harbor (Clean Energy) Limits of § 2036(a) and Tax-Motivated Transfers Section 183 Hobby Losses & Penalties New Section 25F Education Freedom Tax Credit

This week we look at: Proposed Increase to Estate Tax Closing Letter User Fee Divergent Causation Standards for ERC Eligibility Valuation Extremes in Conservation Easements Substantiating Mortgage Interest Deductions Taxation of Cryptocurrency Staking Rewards Section 4960 and "Covered Employees" FBAR Compliance and IRS Agent Authority

This week we look at: Procedural Timeliness & Automatic Extensions Spousal IRA Rollovers Through Estates and Trusts Collateral Estoppel and the "Innocent" Spouse Improper Corporate Deductions and Fraud Implementation of "Trump Accounts" 2027 Inflation Adjustments (HSA, HRA, DPCSA)  

This week we look at: Equitable Relief for Erroneous Tax Refunds: An Analysis of the Fourth Circuit's Reversal in LaRosa v. Commissioner Final Regulations Modify Information Reporting for Section 751(a) Partnership Interest Exchanges The Impermeable Reach of Section 6672: Joint and Several Trust Fund Liability and the Demise of the Delegation Defense The Taxpayer Due Process Enhancement Act (H.R....

This week we look at: Technical Analysis of the Proposed Regulations Establishing Excepted Fertility Benefits Analysis of the IRS Time-Limited Settlement Initiative for Conservation Easement Disputes Strict Compliance with Contemporaneous Written Acknowledgment Requirements in Charitable Land Contributions Transferee Tax Liability and the Consequences of Willful Blindness: An Analysis of Dillon Tr...