Vernoia, Enterline + Brewer, CPA LLC

Archive for July, 2016

Chief Counsel rules that fines paid to FINRA are not deductible

finraIRS Chief Counsel has determined that the Financial Industry Regulatory Authority (FINRA) is an entity serving as an agency or instrumentality of the government of the United States. As such, fines paid to FINRA are not tax deductible. Under the Securities Exchange Act, FINRA is required to conduct enforcement and disciplinary proceedings relating to compliance with federal securities laws, regulations, and FINRA rules promulgated pursuant to that statutory and regulatory authority. (more…)

IRS enhances Get Transcript app to protect taxpayers from fraud

irs_appThe IRS has upgraded its authentication processes for the popular Get Transcript app. The app had been breached by cybercriminals last year. In response, the IRS has strengthened the app’s security features. (more…)

IRS may prioritize cases for private tax collection

The IRS retains discretion to prioritize cases for assignment to private collection agencies, IRS Chief Counsel has explained in new program manager technical advice (PMTA). The IRS is also expected to announce further details about the latest private collection initiative sometime later this year. (more…)

NJ – Division’s claim for repayment of refund upheld

The Appellate Division of the New Jersey Superior Court upheld the Tax Court’s grant of summary judgment to the Division of Taxation (Division) in its claim for a refund of gross income (personal income) taxes erroneously made to beneficiaries of a New Jersey resident trust because a taxpayer, who was acting on behalf of the beneficiaries, failed to establish that the Division’s determination concerning the repayment of refund was incorrect. (more…)

IRS issues guidance on wrongful incarceration exclusion claims

jailThe IRS has provided guidance on how wrongfully-incarcerated individuals are to make claims for a retroactive exclusion from income for any civil damages, restitution or other monetary award received in connection with their wrongful incarceration. The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law on December 18, 2015, permits such an exclusion. (more…)

IRS notifies taxpayers of special procedures permitting return of seized assets

seized_assetsThe IRS began notifying impacted taxpayers of special procedures permitting the return of seized assets. To be eligible for a return of the assets, taxpayers must show that the underlying funds came from a legal source. (more…)

How do I: Get an extension of time to change a method of accounting?

A taxpayer changing its method of accounting must either request advance IRS consent or apply for automatic IRS consent on Form 3115, Application for Change in Accounting Method, to make the change. Automatic consent is more favorable because the taxpayer can request the change on its return filed after the year it makes the change. (more…)