By John G. Hodnette Amending returns can cause clients and practitioners needless anxiety if they do not fully understand the applicable rules. This short article describes those rules regardless of whether the amended return provides an addition to tax or requests a refund. The first concern is the statute of limitations. Section 6501(a) generally provides […]
By John G. Hodnette “I Love Lucy,” running originally from 1957 to 1960, exists in the collective memory of multiple generations of Americans as one of our most iconic television programs. In fact, in 2012 (52 years after its end-date) it was voted as the “Best TV Show of All Time” in a survey conducted […]
By John G. Hodnette The IRS has a resounding reputation as the tax collecting body to be feared in the United States. It is the North Carolina Department of Revenue (“NCDOR”), however, that should properly be placed on the section of the map marked “Here Be Dragons.” One of the NCDOR’s most effective powers is […]
By Keith A. Wood This is the second of two installments of this article. Read the first installment here. I. Charitable Deduction Fails Where Tax Basis Not Shown on Form 8283. Belair Woods, LLC v. Comm., TC Memo 2018-159, involved a taxpayer who tried to claim a conservation easement deduction under Section 170. Originally, Belair […]
By John G. Hodnette The 2017 Tax Act includes a new deduction for qualifying pass-through entities codified as Section 199A. Taxpayers other than corporations operating a business are generally allowed the deduction, subject to complex limitations, which require thoughtful planning to ensure taxpayers fully benefit. Certain classes of businesses deemed a “specified service trade or […]
By Herman Spence III The IRS recently issued Notice 2019-9 to provide interim guidance on the excise tax on certain executive compensation paid by applicable tax-exempt organizations (“ATEOs”). Under Section 4960 of the new tax law, an ATEO is generally subject to a 21% tax for compensation paid to a covered employee in excess of […]
By Keith A. Wood This is the first of two installments of this article. Find the second installment here. I. Audit Statistics: What Are Your Chances of Being Audited? The 2017 Internal Revenue Service Data Book (Publication 558) contains audit statistics for the fiscal year ended September 30, 2017. Below are the audit statistics for […]
By John G. Hodnette On June 8, the North Carolina Supreme Court affirmed the 2016 decision of the North Carolina Court of Appeals in Kimberly Rice Kaestner Family Trust v. North Carolina Department of Revenue holding that N.C.G.S. § 105-160.2 is unconstitutional under the due process clauses of both the U.S. Constitution and the North […]
By Herman Spence III On October 19 the IRS issued proposed regulations and a revenue ruling about opportunity zones, which are an important tax incentive program in the major tax legislation enacted late last year. Although the guidance addresses many important issues, the IRS intends to issue further guidance on additional issues. The opportunity zone […]
By Herman Spence III The IRS recently issued Notice 2018-76 to provide transitional guidance on the deductibility of certain business meal expenses. Taxpayers may rely on the Notice until regulations are issued. 1. Interim guidance. Under the Notice, taxpayers may deduct 50% of an otherwise allowable business meal expense if (a) the expense is ordinary […]