Tax Season TOOLKIT
| By Josephs, Stuart R | |
| Proquest LLC |
Everything you need to navigate through the busy season.
After the bustle of the holidays, CPAs will be launched headlong Into tax season. With the rapid changes taking place in the economy and regulatory world, there's much to know when it comes to filing for your clients. But, never fear! CalCPA's annual Tax Season Toolkit is here!
California Tax Update
The Golden Stile seem* to alter its tax code raid: year, arid '2063 Was fio {sception- Some of die change* xtt the imdi of mx tegislaticwi, others represent regulatory jidjUsimatla from stile agendo and still ntilers derive from court raws whose rulings could affect jwr itjjroming filing season. To help you navigate your 2014 busy season, lei's talar a brief look at sonic uf Use more significant changes, hum thusr tliiLl are rcimarlsvi: In those effective in 2014 and beyond.
Retroactive Changes
Culler Resolution
In dartre ivartw lax ffya4 [208 Cal. App, 4th 1247 (Wl3j|, the Court uf Appeal foutid dial die qualified small business Muck (QSBS) exclusion and deferral
Kir tliosc already contacted by tire FI'S rcgunliitg Lhcir 2008-12 returns, the Fi ll will:
* Withdraw pending nonces of proposed assessments;
* Send closing letters tev taxpayers whn signed waiwra for 2 * Abate unpaid tax, intercw. or penalties assessed; and * Refund payments. rerrurd. No action is required unless the refund eras not received by Television ana Film production Credits Tdcvinwn and (sins finxluctuHi iicoJils Can reduce a corporate taxpayer's lax below the tentative minimum tax, raroactiitiy u> 2011, Effective 2013 Lost Tffar tor Formor Business Incontlves Starting in 2014 diem sell: ms lunger tie dcxigiuited cwsrusuui: development areas, inducing: * Enterprise Ztsncs ]EZsj * Targeted Tax Areas (TTAs) + .Vlanufaituriiijj Enhancement Arcus |MEAs| * Local As a result, die following eeoriumie uiecniivex are bong terminated or changed: * [bring credit lincluding the California New Jobs Cscdii) * Sales tax credits * Various business expense deductions available in these targeted areas I lowevcr, through like 31,2013. taxpayers located and conducting business within drsr.gst.rCcd ccxiiKame development arras may stall claim * EvZ hiring crrdils for eligible employees hired on or before * Ed? sales tax credits lor assets purchased and placed in service before * EZ net Lnicrcii deduction, ir operating as a financial institution that received bsleresL income on a bum mrlr to a bo vinos located in a designated aone before jan. 1.2014. Existing unused credits after Dee. 31,2013, will tic eligible fur a 1Ct-yea.r carryforward. Net Operating Loss Carrybacks Far taxable years beginning an ar alterjim. 1,2013, a net operating Sacs. (NOL) may be carried back two yean with (be Mowing limitations: * Tlsr amount of an NOL carryback attributable to taxable yrar 2013 is limited to 50 percent oJ' the NOL * Ha amount of an NOL carryback attributable tu taxable yrar 2014 is limited to 75 percent of the NOL * The amount of an NOL carryback attributable to taxable year 2015 and thereafter is 1 (XI percent of the NOL Same-5 ex Married Couples In U/uttd Slatei a It rnibor, 133 [5. Ct. 267512013;], die l.'. Rir California, site rlTrrttvr rnd of I FOMA rarmu sunrarr married couples will no longer have to create a pro forma federal tax return before completing tjaccr Califorrua married filing Jointly tux return. However, due decision docs not apply to registered domestic partner*, who will continue to be required tu create pm furnca federal Lax returns before preparing their Gov. Bniwil ahci signed AB 362, which excludes Cram grass income lhat portion of income paid by emptuvrn to same-sex couples to nlTset the federal ux paid un health benefits paid to same-sex couples. Slngla Sales Factor Apportionment Midi limited exceptions for certain Industrie?, most multistatc businesses wdi be required to apportion thei r income using only a single tale* factor. They will Hrtc nriinr ifoci [ income appartirHicri Id Cabfousua based Oil a ratio of sales in Financial Institution Investment Credits The aggregate amount of qualified invesmtentx eligible for foe fmariuaJ inst.liiljnn investment lax. rrefill hat hern increased fium SHI million cn 350 million per year. Nonqualified De(erred Compensation Tice rale nf addriinnal ux imposed Simpldret) Application Method for Exempt Organizations The requirements fnr rprtain federally tax-exempt enricle* to apply for a Failure-to-File Penally Extended to LLCs Beginning in 2013, Ute 32,000 penalty for failure tu file a return applies to: I, Foreign LLCs that fop So qualify to do business in (bJifornia or whole powers, right* arid privileges have been forfeited; and 3. Domestic U-C: that have been sutpenHrd and are doing bndicesa in Elimination, ot FT8 Form 540A Beginning in 2013 FT'B Form 540A, Ca&jtnma UtxitUnl ixemi 'lax ttriuxn, is eliminated. 'lupjm will need to use FT6 Form* 5-16 2YJ/. or 540 to tile tiueir returns. Online Sell-Test for Nonresident Withholding lire Fi b has an online self-text trail i.'me ,'iAz.-i(V!'.1.'cur-I * :!itx'/ ulficjtaip) to help nonresident payee* determine whether withholding is required on distributed Califmmia suurre income. New 'Checkoff Designated Charitable Funds The following checkoff Fundi to designate a voluntary contribution on the Cabforiua perturud income tax return were approved or extended: * Senior tlidxcns Fund * Afoh rimer's * American Red tlrusi, * Prwee I Our * * Emergency Food for * Keep .Arcs in However, ihe I'TB cannot add a new fund until another voluntary uuMrtbuliun fund is icmuvrd fram die forties. Effective 2014 and Beyond E-Filing for Fiduciary Returns Beginning in 2014, fiduciaries filing 1TR Form 541-(ktijwnia Ulmer? /itrcnoc lax itetoan-Will be ablr to e-file llicil returns, ivciuinpiuiyuig forms and schedules. Hiring Credit The E55 FILrucg Credit has been replaced with a new hiring credit, starting in 2014 and running for seven years. The new- credit will be available Tor qualified businesses located in former EZs, LAMKRAi or new areas designated by die I he tax credit is equal to 35 percent of the qurdilied wages for Hie lim CO mailt]is of employment and call be claimed I Inly Oil an originally tiled tamely return (no amended returns), Qualified UnitiesJea arc those ullier than statutorily prohibited bwanentr which indudc food service, retail, casino*, temporary employment ageades, adult live eruenainmefit and bars.Rules for qicaiifind buunrssrx to claim the credit: * Tlve new hire must be from one of die following targeted labor groups: * Lung-term ur.cmplaycdl * L'ncsnployccl veterans separated from service within. 12 months prior to hire * Recipient* of the federal earned income credit in the previous tax year * Ex-offenders * Designated welfare recipients * 'Die new hire mutt he :t fislUtirre equivalent, averaging at least 35 hours per week, with a starting wage set at 150 percent of the * Die employer must abtabi a tentative credit rcsexvvslstin from tbc mi will: in 30 days nf chr dale the * Die employer mutt annually certify continued employment and wages paid to the employer and report a nn increase- in full-time employer* or equivalent? pi the FTH. The FIT3 is statutorily required to publish on its wtbiite the employer's name, credits r burned and number of new jobs created. Unused credits may be carried forward for only four years. The new luring credit sunset* for encpluyccs lured before 2021. Qualified employees can generate crediw fontp to 60 months after the sunset date. California Compete* Credit Begin cii.r.g in 2014, live Gwcraar: Of the credits granted, 25 percent must go to small businesses with less ikan 32 million In prior-year sales. Up to 2tl percent of the animal allotment of credits may be allocated to one taxpayer. Credits cm be carried forward fnr five yean. Participant inlormati an and the amount of credits granted will be publicly disclosed, GO-ffiz is also authorized to negotiate any terms la recapture credits. The 1TB lute issued FAQs an the upcoming credit: HHBfjtt (ttsn/bmtm/Ettmmk^&atUlMmL /atirt±w/G:lifirKia_ Gktqpffsc QrAtlttmlNow Soles and Use Tax Exomption for Manufacturing and Raaearch Tills new sales and arc tax exemption is for purchases nf tangible personal property used in manufacturing or research and development. The exemption is limited Co &20U million pee pcisoo per year for qualified property. The exemption is available only to businesses classified in MA1CS codes 3311-3399 (manuthcluring!, 541711 (biolcdi R&1)) and 541713 Iphysittl, engineering, and life sciences RidD). Businesses in Other riclur tries arc ineb'gihlr for the exemption, California Tax Education Council Empowered Gov, Brown signed SB 48-1, which revises the composition of the Nonwage Wlthhold-at-source Regulations Update The FITS proposed regulation* in 18 Cal. Code Reg Setikim 18662-0 through 18662-6 and 19002 that provide guidance to withholding agenu attempting to comply with the complex withhoJding-at-sourcc rules. Existing regularintt! dn nut reflect the numermis enactments of more recent withholding laws The Klfl inteiKfa to foQov. the proposed guidelines where applicable. Si* information compiled by Federal Tax Tips Final Regulation* on Tangible Properly Expenditures Final regulations were issued Sept- 13,2013, regarding the deduction, or citpitiiEzarion of tangible property otpcndkiarcs, for more informalion, see rhis montb'i FedTax Column (Page 26). Re-proposed Regulations on Property Disposilions Rr-propcrted regulations (REG-110732-13}, hsued Sept. 13.2013, deal widi dispositions of property ubjm to depredation under IRC Sec. 168, These proposals allow taxpayers to lake u disposition of a ilnsclural component as fui election made in the year of diqrostion. Fropoaed Effective Dun These regulations are proposed in apph' to tax yean, beginning after 2013. The regulation! also permit taxpayers to rely on titan for tux yean beginning after 2011 and before the final regulations' applicability daw. The propoted regulations also provide that taxpayers may apply die final regulations to tax years beginning after 2011. 2012 American Taxpayer Relief Act The following arc selected highlights of this Act (P.L. 112-240} enacted Jan, 2, 2013. Changes Affecting Noncorporate Taxpayers InauwTkxIlatH The 2012 rales for most individuals, estate* and trusts will permanently continue ihcreafkc However, a 39.6 percent rate will apply, beginning in 2013, to taxable income exceeding the following "applicable thresholds": Net Lng-tcnu Capital Gain* usd Qualified Dividend* For taxpayers subject to the 39.6 percent income tax rate, die top rate on nei lgng-lerm capital gams and qualified dividend! will permanently rise from 15 percent to 20 percent. Observation! Starting in 2013, the 3.8 percent Therefore., the tup ratra, an capital gains and qualified dividends fiir individual* subject to the Caution: Inttidlmcnt rale payments received after 2012 are subject to ax rates for ebe year of payment-and «W for the year of the salt Fermaatcar AM L Relief The Act "patched" tlx AMT for 2012 and subsequent yeans by iocrcasiitg the exemptions and adjusting them annually for inflation fof tax yean beginning after 2012. Therefore, foe 2013, tlx AMT exemptions are: <person>Kir Lax years beginning after 2011. this Art permanently allows individual* to offset their entire regular tax and AMT by nonrcfundahle pcTSanai credits Peramml and Dependency Exemption* Pimacum (for tax yean beginning after 2012, these exemptions are phased out for Indrrichiah whrur. asi|Listed gross income (AGI) rxrrc-iii the following thresholds; Under (he phaseout, the total sjitCHim of exemptions that can be claimed by an individual,, subject to this limitation, is reduced by 2 peiceni fhr each These thrcxludds will be adjusted annually for inflation after 201U. Itemized Deduction* Phiuoat for titx years beginning after 2012, die Art reinstates the previously suspended phaseout of itrsnived dcduciunn, but with the same new thresholds lisfod obow for phasing out esemptfons and with the same inflation adjustment. Thus, mherwuc idlnwnhhi iirmlwd deductions arr rrduerd hy 3 perrem of the excess or AG1 over the applicable threshold. However, this reduction utlllir, exceed 81) percent ol these jtemLecrJ deduction*. for these computations, hetnued deductions exclude medical expenses, investment interest and casually, tlieft or wagenng knscs. IRA Diitiibationi to Charitica Old Gave Individual* age JO.5 or older could make tax-fire distribution* to a charily from an IRA up to SIOO.QOO a year. These dimibudom were excluded from gross lr.cn me and nnt deductible os charitahle contributions. However, they counted towards satisfying the required minimum distributions from traditional IRAjl These nilei expired for distributions made In tax years beginning after 2011. New Law: The Act retroactively extends this treatment lor two years, through 2013. In-service Rollover* to Designated Roth Accounts for Iramfrn after Dec. 31,73112, in tax years ending after thill dole, employers may amend their sees. 401(h), 403(b) or 457(b) retirement plans to allow in-service employees to mil over amounts from these traditional account* to their designated employee Roth accounts In bunktr transfers even If die employees am under age 59.3 Estate Tu Change* forestalls of decedents dying after 2012. the Act permanency provide? a *HI percent maximum tax rite and continues (he annualh- inflation-adjusted Under pit-Aet law, the estate of a decedent, survived by a spouse, was allowed to male a "portability'' I'lei tiiiii to permit the surviving sptiuxe to apply the decedent's unused exclusion to the surviving spouse's own lifetime and at dralh transfers. However, tiro election war tody available U) estate* of decedents dying after 2030 and before 2013. But, the new law mates dm porial.'ll: ly feature pcrntancstL GUI Tu Change* for gjft* mxde after 2012, the Act permanenfly provides a 40 perrer.l maximum tax rate and continues the annually inflation-adjusted Grnerztioo-ft kip ping Transfer (GST) Tu Cbangci 'Jhe Act prescribes a 40 percent cox mie and continues the annually inflation- adjusted This Law also extends a number of GST taje-rrbued provider.* scheduled to expire after 2012, such as deemed allocations, retroactive allocations and relief from late GST allocation* and election?. Changes Affecting Business Taxpayers Kraus Depredation The .Act extends 30 percent bonus depreciation through 2013, or through 2034 for certain tonger-fived and tmnsportadon property flic Comment: Aim nir.tinuing I? thr requirement that bonus depreciation ijelly apjdies to otherwise qualified property whose orifimal rut carariKona with the taxpayer Sec. 179 Election la Expense Certain Depreciable Bntinni Alien The Act extends through 2013 the enhanced hec. 179 deduction sothat the dollar limit for tax yean l>cginning in 2012 and 2013 is Also, fur tax years beginning before 2014, a Sec. 179 election or specification of property to he expense*! may be nrrcvwabiy revoked without Tor any Lax year beginning in 2010 through 2013, up ta » Qualified leasehold inipravenieiu properly; * Qualified reswurani property; and * Qualified retail iinptiiVTtnciit property Sw. 16U* Notice 2013-59 for arlclitional information. Nottt The Act also extends the 15-ycar recovery period for these qualified properties through 201$. Cemmeati In contrast to the bonus depreciation tequlrcmestL property qimbtymg for Set. 179 treatment may be alha new or used RcacartJi Credit The /Vet retroactively rxrrnth this credit, including thr university basic rcicarch credit and die energy research consortium credit, fur two years so that it applies for amounts paid nr incurred before 2014Qualificd rcsnirtlt expenses dial arc paid or incurred by a taxpayer that dispose* of a business nr hutinr.ss unit in a tax year that includes, oi ends with, an ownership change arc treated as currentyear qualified rrsnirrh expenses of the dlspoirng laxpayrr and tint of the acquiring taxpayer. The crexlit allowed tu radii member uf a cniiUulIccl group erf corporations or businesses under common control must be determined on A proportionate basis to its share uf die aggregate of qualified research expetisr* giving rise tu the credit. Other Rminrmi Kvtrndcri Many ndirr burin(TM) provisions dial expired after 2011 were extended through 2U13, such as the reduced recognition jxiriod fur Late $ Corp Elections Rev Prut. 2013-30 facilitates the grant of rdicJ to taxpayer* that request relief previously provided in numerous other rev, proc* by consolidating foe provisions of those rev. proca. into cute rev. proe. and extending relief in certain rxrnuirutanr.es. This new rev. proc. modifies and supersedes rev. proci 2003-43, MXH,4H and 21*77 -4>2 for taxpayers in make: * I sate S Cuip elections; * * Qualified S*.tixJkap1cr * Qualified Sy'odwtpicr S Subsidiary (QSub) dcctioiw; mid * I -Sir corporate cLawificatiun clectinus that 11: r taxpayer iittendrd to lake effect on the same date that the taxpayer intended that an $ Corp election for die entity should take effect. Rev Pror. 2013-30 nikr, incorporate* certain relief prewjskstvi included in Rrv. Proe. 97-18 and supersedes the relief provided in Situation I of that rest proc. It further olisofctni din relief provided in Rev. Proc. 97-411, Situation 2, because such relief is no longer available. In addition, Rev Pnx: £013-30 irreorporalcx certain relief prervuicins contained in Rev. Tit* 200+-49and modifies and supeiredei ibe relief provided in sees. 4.01 and 4.02 of dial rev. proc. Morc17.Tr. it obwfoles the relief provided in Re* Proc, 2004-49,5cc4.03, because llie lime for its narrow scope or relief expired. New Eidathe Simplified Method* Rev Proc. 2013-30 provides the rxrltKivr simplified methods for tiocpxyrn to request relief for: * I-a l': S Crop elections; * ESBT election!; * QSST electron*, * QSub elections; and » Late corporate dassifieaLioti clcCLintLs dial die taxpayer inlcndixl Lo lake effrrx on the same riare tluu the taxpayer incrr-di-rl that an S Clorp election foe die entity should lake cITccu This new rev. pror. prewidra relinf if the taxpayer satisfies the general requirementsoT Rev. Proc, 2013-30, See 4, and the specific requirements applicable lo that taxpayer under Rev: Proc. 2013-30, as fallows: Rev Proc. 2013-30 contain* a flowchart designed to aid taxpayer* «n applying dhis res. proc. No User JVm Rev. Proc. 2013-30 provides procedure* within Itx vqv tiiat arc bi lieu of die private letter ruling (FLR) process ordinarily used lo obtain irlieF for a late -'Election Under Sutxrlsaptrr S'* (defined below] pursuant to See. I362{b>:5). Sec, 1302(1] or tegs, aco, 301,9100-1 and 301.9100-3. Accordingly; user fees do nor apply to corrective anions under Rrv. Proc. 2013-30, Alternative Relief An entity that does not meet the requirements for relief or is denied relief rntdrr Rirv: Proc. 2013-30 may writ relief by requesting a P3.R. tlic procedural requirements for requesting a 1'ldt are described in Rev: Proc. 2013-1 C)tiB successors, t!ifr fta uppF* Election Under Snbchxpter S For Rev l*nx. 2013-30 purposes, Flection Under Subchapter H refers lo: * An election by a corporation or an eligible entity to which a Urerecd Entity Classification Election will apply. * An election by a trustee- cn neat a trust as an ESBT; * Ail election by a inisi beneficiary to treat a trust as a QSST; or * An election Ijv a parent S Crop to treat a subsidiary ai a QSub. Also, Tor such purposes, the parry malting any of the above elections is culled a "Requesting EnfiCyi'' General Requirement* for Rev. Prof. 2013-30 Relief 1. Tire Requesting Fiuiiy ijucndedl to be chuaifird ai an 2. Tire Requesting Entity requests Rev. Proc. 2013-30 relief u-iltaa iticr tears and 75 days sfortfo Fffaliw Aw. except for corporations requesting relief wire re all returns were filed ax an S Curp and six comhlsons- specified in Rrv .Proc. 2013-30, Sec, 5.(41-air met. 3. Tire failure to qualify as ari -4. in IJte case cif a request 1br relief fpr a late S (Jnrp nr QSub electron, the Requesting Entity has ttajetutUt <*cff for failing to make a timely election and acted cbligmlly tn correct the mistake upon i-js dixcnvriy Regarding a request for relier for an inadvertently invalid Upon receipt of a completed request for relief under Rev Proc 2013-30, she Rev. Proc.2013-30's Effective Out Rrv, Proc 2013-30 Is generally rffbcctvn A;pt. 3, 2013, Transition Rules If an entity filed a FUR request seeking relier for a bite Election under SubchupLcr S covered liy Rev. Proc. 2013-30 (hat was pending in the Deducting S corp Losses Under See. I3fib;dl, shareholders can only drdurt their passed.through ihare of an b UorpT loss to the extent of foeir adjusted bati* in the eotponitron's stock and llie unptmitiun'r debt owed let tiietn. Excess losses, arc suspended and treated .xs incurred in the succeeding ux year hi fismter, GA-1TC, 12-1284, The shareholder* had suspended losses from 1993 and 19% dial were deemed to be incurred in 1997. Then- vat suflirient bxssi to tirduct thnse losses tn 1997.1 lowever, the share ho Idtrs failed to deduct those fosses. The tharrbnldrrs iLssened tltat tlm liad "iimtsecl" bosss fnan 1997 that could be used to allow the deduction of the 2003 Imres live Observation: I'hr result In this case is similar tn dir trentmcnl prescribed b;' Sec. ldlb]aV2! that requires the basis of property to be reduced by drpreriabon allriwrd ;ls a drriurti.in Fur mt fou tfzr tfuranatail alhuaMt. Information Document Requests |IDRs| This training prescribes die following steps tiiat must he perforated ill issuing J DRs: 1. AD LLlRs issued during an LB&I c*ani must be focused-the examiner iiius i'i< nlify iUid stale dir. issue (hill hits 3rd live examiner to request die information included in the fl>R; 2. Tire examiner must discuss the OR wills the Utxp.isTr briurr tl us issued; su«d 3. Belli parties must discuss and determine a reasonable timeframe fur Tcqpoiuc. Planning and Raaminarirm fondance Thi* directive's purpose is to annoviitcc the requirement that all IDR* issued alter June JO. 2013, must comply with the three step* described above. Faulting memorandums of understanding relating to ll>R nunagetnem that do nrst Comply wills these steps arr nu longer ctfconvc. In the coming motillis, I.HA:I will announce cliiingrs so the IDR enforcement proto*. While LBAJ believes "Jic need for an enforcement process may fcr limited once Hills rorri Ibesc new requirements, it's important to leave an effective luiri swift enforcement process when iicrrviary Hnwc-wr, before tJsr new cnfcirecmrnl proerxi u implemented, Ii'eesscmial that all IDRs issued during an I.BA I exam meet there nev. requirements. This directive- ensures dial wiD occur. Cautioa; TTsie directive Hares fruit it b not an oBicial pronouncement of law- and cannut Ire used, cited in relied i,pi ill as such Fair Market Value IFM VI of Gift May be Reduced by Donees' Assumption of Donor's Potential Estate Tax Liability In Suinbrrga. CmnasstMit fit I T.C. No 8, Sept.3t>, 2013], a don or entered intis a binding gift agnvirirnt with her daughters under wiiirih she gavr hrr daughters cash and securities. In exchange, die daughters agreed to assume and to pity any estate tax imposed under Sec. 2033$) ns a result nf these gifts if she pawn away within three years nf die gifts In calculating for gift lax purposes the gross FMV nf the property transferred to the daughters, the donor reduced the cresh and recuriticit' FMV by an amount representing die valise of the daughters' juxunipitinn of the potential Sesr, 20S5(b>«Bd* lax liability, I he l a* Court Ireld that, because the valut of die obligation assumed by foe daughters is nu* barred as a matter nf law from bfhvg consideration in money or money's worth within the meaning of Sec. 2312$), the FMV of die donors taxahle gift muv lie detrenurird with reference tu the daughters' assumption or die potential Sec. 2035(b) estate tax liability: 'Hie court also held dial it will net longer follow McCord & Gmirnisunicr 1120 l.C. 338 (2003), nr if ana' mrsxa'td mb man. Seaman af McCord r, Cmmkdmoi 461 K3d 614 (iLh Cir. 2006)] to die extent it provides Otherwise. Completed However, HI.R 2013 HUMS considered the treatment of an irrevocable mssi rroni which distributions may lir matlc pursuant to die decisions of a distribution iiirr.riiir.ee consisting of potmtiai lirnrhilunei, including the grantor. The HI Jt concluded dun dir granrnr's mr.lnhiitirm of property to Die trust was not a completed gift subject to gift tax, Any distribution to die grantor would ire merely a return of his property. Upon his death, the trust's property's FMV would be includible in his gross estate lor «cme tux purposes. This i'S.R also concluded ilui any property diurii iuiicm by tire eonuntuee to any beneficiary, battle! Use grantor, would be not be a *.usable gift subject to gilt tax by any riimroittre mrmber, hut irutrurl would be a ctsnplcted gift by die grantor. Can.dam t,rr.mil taiunsel Mrmnrandnms are nnl luted, orncing tire aurburlcics in Regs. See. 1.6662-4® JXiii) to determine whethte foenc u vuhifctmial authority for an itetn's Lax lxraunrm. Atihmigh HI Kv fusued after Oct, 31, I976)im lieted asaWhondcs, S«, bl IOiTVS) provide* that, generally, they naty out Ire used or cited as prcecileril. I'LR 201110002 also state* that it is directed only to die requesting taxpayer Limits on Duplicating Built-in Losses See. 362;c);2) prevents duplicating bunt-in loisc* and applies to property aeqsnnrd Ity a rnrponaticin: * In a Sec. 351 transaction; f As paid-in surplus; or * Ava capital contribution. Final rrguUutuiN |TD.9633), dTecuvc ScpL 3,2013, explain dicse basis limitations anti include detailed requirements for molting an ejection under See. 362]e)]2ftCj to, instead, ayijdy ibis lintiuiinn tu lire transferor's sLctk batit so that it will not exceed its FMV immediately after the tnuufer, Innocent Spouse Relief Rev. Pkk 2013-34, effeettve for requests for relief filed after See. 4.01 of this rev. proc. provides she ihrcdiolri lequiremcnts for mly request for equitable relief. See- 4.02 sets forth the conditions under which die See, 4.03 provides a nonexclusive list of factors for conridtratioit In deirrmining whether relief shmild tv gramrd under-Sec. 6015(f) because h would be inequitable to hold a requesting spouse jointly and severally liable when the eunditiiins nf See. 4.U2 ace sics! met. The factors in Soc. 4.03 also will apply in determining whether tu relieve u spouse fruru ineonic tax liability resulting from Use operation or coBimunky pmprrty law iincirc ihe equitable relief provision <>r Sec. 66(e). Due Date* The timeliness Lhrcxhalri concbtinn in See. 4.LI 1)3 pmvsdrs that a rrqurv. for cq.tiiable relief under kcs. 60S5K1 oi66{el must be (tied before the cxtrirjlinn nf the period nf Dmilaiiun fnr collrctims under See. fi502 so for extent the taxpayer see tv relief from an oowtatiding liability or before the expiration of the period of limilutiun for i.Ttdil or nrfusid under Set. 6311 ro tjw ement the taxpayer web a rebind nf raw* paid. This is a signiltoarn change to foe requirement in Rev. Proc. 2003-61, See. 4.01(3) and Rrgx Sec. I.60l3-5$y I) lluU tire reqursling spouse'* claim for equiuble relief must be tiled nu later titrut two years after lire date of die Proposed increases in Fees for Installment Agreements and Offers-ln-Compromise Proposed regulations |REG-14499Q-12] WOTlld inrrr.tsc these fees, effective Proposed Existing New Legal Same-Sex Marriage* fteeegniied for Federal Tax Purpose* Rev. Rial. 2033*17 pertains Lu koxi 1C-MIX cauplci legally married in domestic or foreign jurisdictions dial recogniie such majTiagc-s. They ".ill be treated os nutracd feix federal lax p.nyKttcs even if Lhr -'ouplc Lira ui a jumcbelicin slat does not cccognra such marriage*. This include* all lax provisions where marriage U a Ixc-tor. Under The adjustment method* are both optional ami are intended to reduce filing1 and reporting burdens assot i.slts 1 with the optional rcUUblctive application of Rev. Rul. 2013-17's holding* Thr lira adjuvlxncnt metliod allows rmplrryrn to use Lhe fourth ciranrr SCI 13 Isirin!M I, Emptoyrr'i QjMrttrJr JiiStral Tax firtarw, to coircn the meqjayment of employment taxes doling 2013 s first three quarters. lhe sccottd alternative allows employers to file one form 95IX. ,-lcj'urfcd Umphrffri Qyarvrif Mm! Tic fftrurn or Claim for Hrfomf, for the fourth quarter of SO 13 to correct the overpayment of fodernj insurance Contribution Act (F1CAJ taxes during all quuuicn of SO 13. JJI imorrewiion compiled by Stu*rt R. JoteplM, CPA. Vou cam roach him ai 16191469-6999 or stuartrjosephsl3yahDCi.com. want more? Have Tax Questions? Find answers on CalCPAs. TaxTalk listserws. located at wwwwlcpa.orgAaxtalk, or by starting a discussion on our Linkedln page: vwA9.ealcp3.org/linkedin. You can also search "taxation" at www.cakpa.org/RSVP lor any courses, webcasts and conferences offered by the TriiUll iSicill Agrccmcnti: * Entering into an agreement SU0 3103 * Direct deb-.t agreement 52 52 *! im-iiiniuv taxpayers 43 43 * Rcsirumriitg or reinstating an agreement in default 50 15 Often- in-compromisr: PnKxusxng an offer to ctimpnixcusc 106 150 * Loumimoiik taxpayers 0 0 * OITcrc based solely on doubt as to liablity 0
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Advisor News
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- Cryptocurrency legislation takes one step forward with bipartisan support
- IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
- The hidden flaw in insurance AI adoption for advisors and carriers
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- MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
- The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
- AuguStar Retirement launches StarStream Variable Annuity
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- Virginia program cuts costs of health insurance under Obamacare
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- PacificSource cuts 97 Oregon jobs amid retreat from health insurance markets
More Health/Employee Benefits NewsLife Insurance News
- AM Best Affirms Credit Ratings of Halyk-Life, JSC
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- AM Best Assigns Credit Ratings to Park Avenue Life Insurance Company
- Nationwide reaches reinsurance agreement with MassMutual on UL policy block
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