Vernoia, Enterline + Brewer, CPA LLC

Archive for October, 2015

IRS proposes new tax on gifts and bequests from expatriates

giftThe IRS has issued proposed regulations under Code Sec. 2801 to implement a new tax on transfers of property from individuals who abandon U.S. citizenship or residency (a “covered expatriate”) and who later make a gift or bequest to a U.S. taxpayer (individual or U.S. trust). The tax applies to transfers of property on or after June 17, 2008 from an individual who expatriated on or after that same date. (more…)

Inpatient medical services are necessary to meet ACA’s minimum value requirements

Employer reporting medicalFollowing the lead of the U.S. Department of Health and Human Services (HHS), the IRS has announced that employer-sponsored plans that fail to provide substantial coverage for inpatient hospitalization or physician services do not provide minimum value under the Affordable Care Act (ACA). The guidance from the IRS includes transition relief for eligible employer-sponsored plans. (more…)

IRS clarifies Code Sec. 199 domestic production activities deduction

The IRS has released proposed regulations intended to help taxpayers claim the Code Sec. 199 domestic production activities deduction. The IRS provided guidance on materials manufactured, produced, grown, or extracted (MPGE) for purposes of the deduction. (more…)

IRS issues more guidance about Multiemployer Plan Pension Relief Act

The IRS has issued more guidance about the Multiemployer Pension Reform Act (MPRA), which allows, in certain circumstances, the suspension of benefits. At the same time, opponents of the MPRA are trying to persuade Congress to repeal the law. (more…)

IRS announces per diem rates for post-September 30 travel

The IRS has announced the simplified per diem rates that taxpayers can use to reimburse employees for expenses incurred during travel after September 30, 2015. The high-cost area per diem increases to $275 and the low-cost area per diem increases to $185, the IRS reported. (more…)

Tax whistleblowers continue to find a friend in Tax Court

Tax WhistleblowerIn two recent cases, whistleblowers have had success before the Tax Court. In one case, Tax Court granted motions to compel production of documents filed by three whistleblowers — individuals who informed the government about a tax evasion scheme-whose reward claims the IRS had denied. In another case, the Tax Court found that the whistleblower statute does not require that a whistleblower first bring his or her information to the IRS Whistleblower Office to be eligible for an award. (more…)

FAQ: Can a taxpayer assign income to someone else?

Gross income is taxed to the person who earns it by performing services, or who owns the property that generates the income. Under the assignment of income doctrine, a taxpayer cannot avoid tax liability by assigning a right to income to someone else. The doctrine is invoked, for example, for assignments to creditors, family members, charities, and controlled entities. Thus, the income is taxable to the person who earned it, even if the person assigns the income to another and never personally receives the income. The doctrine can apply to both individuals and corporations. (more…)