Time for Post-filing Season Checkup
Your 2011 tax return has been filed, or you have properly filed for an extension. In either case, now it's time to start thinking about important post-filing season activities to save you tax in 2012 and beyond. A few loose ends may pay dividends if you take care of them sooner instead of later...

Countdown to Supreme Court's Health Care Decision
After three days of oral arguments in March, the Supreme Court is deciding the fate of the Pension Protection and Affordable Care Act (PPACA) and its companion law, the Health Care and Education Reconciliation Act (HCERA). Not only do the new laws impact health care, they contain numerous tax provisions, many of which have yet to take effect. The Supreme Court may uphold the laws...

Congress Eyes Retirement Savings Plans in Push Toward Tax Reform
Proposals to reform retirement savings plans were highlighted during an April 2012 hearing by the House Ways and Means Committee. Lawmakers were advised by many experts to move slowly on making changes to current retirement programs that might discourage employers from sponsoring plans for their workers. Nevertheless, it is clear that Congress wants to make some bold moves...

How Do I - Compute Code Sec. 1231 Gains and Losses?
Code Sec. 1231 applies to gains and losses from property used in the trade or business and from involuntary conversions. Normally, you have to determine whether property is a capital asset or is ordinary income property. Property generally can't be both. However, Code Sec. 1231 allows you to "have it" both ways. Any gains are taxed at low capital gains rates (generally 15 percent for 2012)...

FAQ - What is a Family Partnership?
The family partnership is a common device for reducing the overall tax burden of family members. Family members who contribute property or services to a partnership in exchange for partnership interests are subject to the same general tax rules that apply to unrelated partners. If the related persons deal with each other at arm's length...

May 2012 Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of May 2012...

GAO Reports Confusion Over Foreign Account Reporting Under FATCA and FBAR
The U.S. government has been tightening its scrutiny of taxpayers who use foreign financial accounts to circumvent U.S. tax law. Last year the Treasury department imposed new requirements on taxpayers with financial interests in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account...

IRS Commissioner Reviews Priorities/Accomplishments; Will Step Down in September
IRS Commissioner Shulman recently announced he plans to leave his position when his five-year term ends in September 2012. Speaking before the National Press Club this past April, Shulman also took the opportunity to review IRS progress during his tenure within numerous strategic areas, including computer technology modernization, tax return preparer standards...

IRS Releases Updated Collection Financial Standards for Ability-to-Pay
The IRS has released its Collection Financial Standards for 2012. The Collection Financial Standards specify the amounts that taxpayers may claim as basic, necessary living expenses when they claim that paying their taxes will cause an undue hardship. The IRS also applies the standards when taxpayers ask for an extension of time to pay the tax shown on their return...

2012 Tax Season Ends Quietly
The 2011 filing season ended quietly, apart from a few IRS reminders and last-minute tips issued just before the April 17 deadline. Practitioners generally agreed with the government’s assessment that there were no big misfires this tax season. The IRS reported no problems with the processing of returns apart from a few delays in processing refunds in the early portion of the filing season...

IRS Eases Up on Local Lodging Deduction for Employees
The IRS has issued proposed “reliance” regulations that allow an employee’s deduction for local lodging that is business-related. Although the proposed regulations are technically not fully effective until published as final regulations, they allow taxpayers to deduct local lodging expenses under Code Sec. 162 (trade or business expenses) if the statute of limitations has not expired for the year...

PA - Philadelphia Amends Business Privilege Tax Credits
A Philadelphia ordinance amends the business privilege tax regulations governing credits available for contributions to community development corporation and nonprofit intermediaries. The definition of a "contribution agreement" is amended to decrease the amount required under a contribution agreement to $85,000 (previously $100,000)...

Tax Alerts - April 2012

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