Daily Tax Report ®

Neal Katyal on Raising Diversity in the SCOTUS Bar (Podcast)

Supreme Court Denies Review to Tax Penalty Case

Top Stories

Partnerships Get Some Reprieve From New IRS Reporting Rules

Partnerships will have until 2020 before they have to start reporting partners’ shares of capital using a method that could help the IRS spot certain abusive accounting gimmicks.

IRS Tax Practicing Standards Office Gets New Leader for 2020

The IRS office dedicated to overseeing the tax preparation industry will soon be headed by Sharyn M. Fisk, a tax professor and lawyer based in California, the agency said.

Treasury Finalizes Non-Business Income Rules for Nonprofits

Nonprofit organizations must follow unrelated business income tax rules for investment income regardless of how that income is used, the IRS said in final rules.

White House Reviewing Rules on Tax Law’s Opportunity Zones Perk

The White House regulatory affairs office is reviewing a set of final rules for the opportunity zones incentive established in the 2017 tax law.

Senate Dems Urge Leadership to Act on Clean Energy Tax Breaks

Nearly half the Senate Democratic Caucus—including multiple members of the Senate Finance Committee—has signed on to a letter supporting the expansion green energy tax incentives.

IRS to Ignore Watchdog on Tax Refunds if Shutdown Occurs

The IRS will continue processing and issuing tax refunds if a shutdown occurs during the upcoming filing season—despite a government watchdog’s warning that such actions are illegal.

France Favors International Solution to Tech Tax, Minister Cédric O Says

Dec.05 -- French Minister of Digital Affairs Cédric O discusses the OECD’s proposal to overhaul how the digital economy is taxed with Bloomberg's Taylor Riggs on "Bloomberg Markets."

Up Next:

Sen. Warren on Wealth Tax, Trade War and Medicare For All

Why Billionaire Presidential Candidate Tom Steyer Supports the Wealth Tax

Why Warren’s Wealth Tax Could Push Billionaires Into Private Equity

N.J. Governor Murphy Says Trump 'Weaponized' Tax Law

Trump Weighs Weakening Obama's Corporate Inversion Rule

New York City Has a Property Tax Problem

Podcasts:

U.S. Treasury Tax Policy: A Talk With David Kautter

Sen. Ron Wyden Interview at Bloomberg Tax Forum

Tax Developments

IRS Delegation Order: Authority to Sign Proofs of Claim, Other Documents Asserting Tax Obligations (IRC §7701)

Authority to sign proofs of claim and other documents asserting tax obligations (including taxes, penalties and interest) for payment in any proceeding under the Bankruptcy Act or tax code and any receivership, corporate dissolution, decedent’s estate case, or an insolvency proceeding under state or federal law delegated to SB/SE, GS-11 Civil Enforcement Advice & Support employees, and GS-9 Specialty Collection, Insolvency employees responsible for proof of claim preparation, the IRS released December 9. The delegation is effective November 27, 2019. [Delegation Order 25-3 (Rev. 1) (Dec. 9, 2019)]

…

Case: Taxpayer Cannot Recover Administrative Costs When He Wasn’t Prevailing Party (T.C. Memo) (IRC §7430)

Taxpayer cannot recoup administrative costs upon settling penalty assessment with IRS Appeals office where he was not a prevailing party as required, the U.S. Tax Court held in a memorandum opinion. Taxpayer was an accountant and certain entities he controlled were investigated by the IRS as part of a tax shelter investigation. Taxpayer was assessed penalties for being a material advisor that failed to disclose reportable transactions. The IRS and Taxpayer reached a settlement in Appeals regarding the penalties. Taxpayer was then denied a request for administrative costs under tax code Section 7430 because he wasn’t a prevailing party. The court explained that Taxpayer was not a prevailing party because Appeals did not issue a notice of deficiency or a notice of decision and therefore, didn’t take a “position” contrary to Taxpayer’s for purposes of Section 7430. [Klopfenstein v. Commissioner, T.C. Memo 2019-156 (Dec. 9, 2019)]

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Case: Appeals Office Properly Sustained NFTL Where Taxpayer Couldn’t Facilitate Withdrawal (T.C. Memo) (IRC §6320)

Appeals office didn’t abuse its discretion in sustaining a notice of federal tax lien filing where Taxpayer failed to take the necessary steps to have it withdrawn, the U.S. Tax Court held in a memorandum opinion. Although Taxpayer was enrolled in an installment agreement for $300 per month, the IRS filed a notice of federal tax lien because the unpaid balance exceeded $10,000. Taxpayer argued that the lien should be removed because it was premature and would cost him his job, but he did not complete the application for withdrawal or supply any evidence that his job was in jeopardy. Taxpayer made a lump-sum payment covering about one third of his liability, but was informed by the Settlement officer that he would have to increase his monthly payment amount, which he declined to do. In order for Taxpayer to apply for lien withdrawal he had to convert his partial payment installment agreement into a direct debit installment agreement, but he failed to do so, the court stated. Taxpayer also would have to satisfy his unpaid balance in 60 months, but rejected the increased payment amount, the court added. Taxpayer also failed to show how the lien would cause him to lose his job or interfere with future employment and therefore, failed to show that withdrawal would facilitate collection, the court concluded. [Brown v. Commissioner, T.C. Memo 2019-157 (Dec. 9, 2019)]

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Neal Katyal on Raising Diversity in the SCOTUS Bar (Podcast)

Supreme Court Denies Review to Tax Penalty Case

Top Stories

Partnerships Get Some Reprieve From New IRS Reporting Rules

IRS Tax Practicing Standards Office Gets New Leader for 2020

Treasury Finalizes Non-Business Income Rules for Nonprofits

White House Reviewing Rules on Tax Law’s Opportunity Zones Perk

Senate Dems Urge Leadership to Act on Clean Energy Tax Breaks

IRS to Ignore Watchdog on Tax Refunds if Shutdown Occurs

France Favors International Solution to Tech Tax, Minister Cédric O Says

Up Next:

Sen. Warren on Wealth Tax, Trade War and Medicare For All

Why Billionaire Presidential Candidate Tom Steyer Supports the Wealth Tax

Why Billionaire Presidential Candidate Tom Steyer Supports the Wealth Tax

Why Warren’s Wealth Tax Could Push Billionaires Into Private Equity

N.J. Governor Murphy Says Trump 'Weaponized' Tax Law

Trump Weighs Weakening Obama's Corporate Inversion Rule

New York City Has a Property Tax Problem

Podcasts:

U.S. Treasury Tax Policy: A Talk With David Kautter

Sen. Ron Wyden Interview at Bloomberg Tax Forum

IRS Delegation Order: Authority to Sign Proofs of Claim, Other Documents Asserting Tax Obligations (IRC §7701)

Case: Taxpayer Cannot Recover Administrative Costs When He Wasn’t Prevailing Party (T.C. Memo) (IRC §7430)

Case: Appeals Office Properly Sustained NFTL Where Taxpayer Couldn’t Facilitate Withdrawal (T.C. Memo) (IRC §6320)

Featured Topics

corporate income tax

Interstate Tax Fight Doesn’t Merit High Court Review, U.S. Says

Treasury Finalizes Non-Business Income Rules for Nonprofits

Pro Tips: How to Cut Your Tax Bill in the Final Weeks of 2019

international tax

Spare High-Tax Business From OECD Global Tax Math: Rio Tinto (2)

Morneau Moves to Implement Middle Class Tax Cut in Canada

Buhari Nominates Nami to Replace Fowler as Head of Tax Agency

pass-through entities

Partnerships Get Some Reprieve From New IRS Reporting Rules

Supreme Court Denies Review to Tax Penalty Case (1)

Pro Tips: How to Cut Your Tax Bill in the Final Weeks of 2019

Other Topics