The Bloomberg BNA Federal Tax Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues about federal tax topics. The ideas presented here are those of individuals and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.
December 19, 2014
by Nadia Masri
Does an employer that is not subject to the employer shared responsibility requirements have information reporting obligations for coverage offered to its full-time employees?
December 16, 2014
Aren’t “seasonal worker” and “seasonal employee” interchangeable terms? Not when you are interpreting the employer shared responsibility provisions under the Affordable Care Act.
December 15, 2014
On January 29, 2014, President Obama issued a memorandum directing the Secretary of the Treasury to develop by year-end a new retirement savings security (originally called a “ myRA ”) focused...
December 8, 2014
by Syd Gernstein
I couldn't help but think of the Publisher's Clearing House prize
patrol as I read recent IRS guidance clarifying the taxation of
rollovers from qualified plans to multiple destinations.
December 5, 2014
by Cory Lizarraga
legislators have followed the general public opinion and have begun to legalize
the sales and use of marijuana. Federal lawmakers now must contemplate whether
they should follow suit. As with most commodities generating revenues, the
issue of taxation must be addressed. A recent study by the Congressional
Research Service explores the potential issues surrounding a federal marijuana
December 4, 2014
Your client took a short-term loan from her IRA, but the rollover of the amount was delayed. Can a letter ruling save the day?
December 3, 2014
by Tammara C. Madison
Identity theft has been pervasive. In an earlier blog ( Identify Theft Pervasive,
Overwhelms IRS (Dec. 1, 2014)) I discussed that while the IRS has increased its
activity in the fight against...
December 2, 2014
Tax practitioners often lecture clients about the importance
of documentation. Many clients don’t
adhere to the advice, but even those that keep meticulous records can be
surprised that the...
December 1, 2014
By now you may have heard one or more of the horror stories:
the taxpayer files a return and eagerly awaits the expected refund, until he
receives a letter from the IRS informing him that a...
by Shaun Terrill
A recent tax court decision shows that, while qualified plans must offer participants the chance to roll over benefits, qualified plans are not REQUIRED themselves to accept rollovers, even where the plan regularly accepts employee contributions.
November 28, 2014
the arrival of the college football bowl season and college basketball regular
season, there are few times of the year when sports fans across the nation pay
closer attention to the...
November 26, 2014
Buried on page 8 of the IRS’s 2014-2015 Priority Guidance
Plan, in the third item of subsection B, under the “Executive Compensation,
Health Care and Other Benefits, and Employment Taxes” heading,...
Friends often ask me all sorts of questions when they first find
out I am a tax attorney. Some examples: Friend: Can I deduct
the cost of these new shoes? Me: No. Friend: But I’m
November 25, 2014
Many advisory firms that provide clients with computer-based
investment programs designed to provide investment advice to participants in participant-directed
retirement plans are closely...
November 23, 2014
Employers who provide transit benefits for their employees should
pay close attention to an IRS ruling released last week, Rev. Rul. 2014-32, which
provides updated guidance on the use...
November 19, 2014
by Mary Lundstedt
Successor of troubled asset relief program recipient can't use extended NOL carryback
November 17, 2014
The IRS has released the 2014 Form 8962, which individuals will use to determine their premium tax credit and to reconcile it with advance payments.
Self-insured group health plans and health insurance issuers received a last minute extension to file their transitional reinsurance annual enrollment count for 2014.
November 5, 2014
An employer that sponsors a self-insured group health plan for its full-time employees asks, “Don’t I escape ‘pay or play’ as long as the plan that I offer to my full-time employees is affordable and provides minimum value under the MV Calculator, even though it does not cover in-patient hospitalization services?” The IRS is taking action to ensure that the answer is “no,”
October 30, 2014
The D.C. District court, which last year permanently enjoined the IRS from enforcing its registered tax return preparer program (see Loving v. IRS , 917 F. Supp. 2d 67 (D.D.C. 2013)), recently...
October 29, 2014
When does the clock start ticking on ERISA retirement plan participants’ claims brought against plan fiduciaries because the plan offers investment options with higher fees when comparable lower-cost alternatives are available? The U.S. Supreme Court granted certiorari in Tibble v. Edison Int’l
October 22, 2014
On October 22, 2014, the Social Security Administration released a Fact Sheet of the 2015 Social Security changes. The most important changes include the following: 1. The social security...
October 6, 2014
The 9 th Circuit in Hawkins v. Franchise Tax Bd. of Cal., 3:10-cv-02026-JSW, 2014 BL 255142 (9th Cir. 2014), recently held that, in order to apply 11 U.S.C. §523(a)(1)(c)’s exception from...
September 30, 2014
When is foreign-earned income not income for Roth IRA contribution
purposes? The answer to that question depends
on the Roth IRA contribution limit in effect.
Under an annual IRS “dollar...
September 12, 2014
In its September 11, 2014 webinar on retirement news and hot
topics, an IRS employee, not speaking in an official capacity for the IRS,
provided more information with respect to the effect of ...
In its online webinar on Retirement News and Hot Topics held
on September 11, 2014, the IRS discussed its Form 5500-EZ Penalty Relief
Program for certain plan sponsors that failed to file an...
September 11, 2014
The Affordable Care Act presents an ongoing challenge both for regulators formulating guidance and for employers and their professional advisers trying to keep up with that guidance and related deadlines and transition relief. The compliance calendar and timelines in the Health Care Reform Adviser on Bloomberg BNA’s Tax and Accounting Center help you keep track of what needs to be done.
August 29, 2014
Among the many “gray areas” of taxation is what constitutes
a willful attempt to evade or defeat tax.
The answer may lie in what circuit court has jurisdiction over the
question. In Vaughn...
August 20, 2014
The "Final" Final Tangible Property Regulations The final regulations issued as T.D. 9689 on August 18, 2014 represent the last major component of the IRS's long-running effort to provide...
August 14, 2014
O'Bannon v. National Collegiate Athletic Association
, No. 4:09-cv-03329-CW, 2014 BL 221080 (N.D. Cal. Aug. 8, 2014), the National Collegiate Athletic Association (NCAA) was found to be in...
August 11, 2014
Between July 1, 2014 and October 31, 2014, individuals participating in retirement plans operating in PR, whether qualified or not, can elect to prepay all or a portion of their accumulated...
August 8, 2014
In Burwell v. Hobby Lobby Stores, Inc. , No. 13-354, 2014 BL 180313 (U.S. June 30, 2014), the Supreme Court ruled that regulations requiring closely held for-profit companies to provide...
August 7, 2014
On July 1, 2014, the Governor of the Commonwealth of Puerto Rico signed House Bill 1919 into law, which became Act. 77-2014. Generally, this Act provides rules on certain prepayments of P.R....
July 25, 2014
by Vara Barnes
On July 23, 2014, the IRS announced in Rev. Proc. 2014-45, 2014-33 I.R.B. __ relief for shareholders of certain money market funds (MMFs). Unlike other types of mutual funds, MMFs have...
June 27, 2014
Recently finalized Circular 230 rules (see T.D. 9668, 79
F.R. 30885 (6/12/14)) have significantly simplified the rules for practitioners
when providing written advice and have eliminated the...
by Vanessa Walts
The U.S. Supreme
Court eliminated a presumption of prudence that ESOPs often relied on to defend
stock drop cases. In Fifth Third
Bancorp v. Dudenhoeffer ,
participants in an ESOP...
June 16, 2014
Perpetuating a disagreement among courts, the Sixth Circuit in ABC Beverage Corp. v. United States , No. 13–01701 (6th Cir. June 13, 2014), reaffirmed its 1948 holding in Cleveland Allerton that...
June 5, 2014
Plans that are subject to Title IV of ERISA must comply with, among other things: the payment of Pension Benefit Guaranty Corporation (PBGC) insurance premiums; the guarantee of minimum plan...
May 23, 2014
by Sean Silva
Governmental guidance on how to treat cryptocurrencies such
as Bitcoin, Litecoin, and Dogecoin have been sparse and often leave more
questions than answers. Examining a
combination of Notice...
May 22, 2014
A somewhat little-discussed but increasingly important provision in the Code that could negatively affect the compensation of key executives is §7874’s treatment of certain corporate inversions. ...
May 16, 2014
Perhaps the most subtle way in which ERISA may impose
fiduciary status on an individual is under section 3(21), which deems as a
fiduciary any individual who provides “investment advice” to an...
May 13, 2014
Whether a particular item is real property is of critical importance to REITs, because a REIT must derive a certain amount of income from real property and hold a certain amount for investment....
Congress recently passed the Cooperative and Small Employer Charity Pension Flexibility Act, P.L. 113-97, to provide relief from funding rules for pension plans that are maintained by nonprofit...
Practitioners await the Supreme Court decision in Dudenhoffer v. Fifth Third Bancorp ., argued April 2, 2014, in which the Court will address the presumption of prudence in stock drop cases for the...
May 12, 2014
Whether you say “Vires in Numeris” or “To the Moon” your future with virtual currencies will change because of the taxman. In Notice 2014-21, 2014 I.R.B. 938 (4/14/2014), the IRS issued its...
May 8, 2014
Typically, loud, conspicuous and repetitive is a recipe for
disaster. But not so when it comes to
the law. Not so. NOT SO AT ALL. In Spiewacki v. Ford Motor Co.-UAW Ret.
April 25, 2014
Among the issues addressed by the Eighth Circuit Court of
Appeals in Tussey v. ABB, Inc. , Nos.
12-2056, 2014 BL 75252 (8th Cir. Mar. 19, 2014), was whether Fidelity Management
April 24, 2014
Many practioners wondered how the IRS would apply the 1-IRA-rollover-per-year
limitation of I.R.C. §408(d)(3)(B) after the Tax Court weighed in on the issue
in Bobrow v. Commissioner , T.C....
April 9, 2014
The Affordable Care Act requires annual cost-sharing limits on coverage as part of the essential health benefits package required for plan years beginning in or after 2014. As enacted, it provided for annual limits on total cost-sharing and for annual limits on deductibles for insured employer-sponsored plans offered in the small group market. Section 213 of the Protecting Access to Medicare Act of 2014 (Pub. L. No. 113-93) eliminated
April 4, 2014
by Vanessa Walts, Esq.
Multiple employer church plans may lose their exempt status unless they affirmatively opt out of recently enacted pension relief. The Cooperative and Small Employer Charity Pension Flexibility Act...
March 26, 2014
by Soni Manickam
Rev. Proc. 2014-7 supersedes and expands the scope of Rev. Proc. 2012-20 to provide taxpayers the option of changing their methods of accounting to comply with either the temporary or proposed regulations generally for taxable years beginning in 2012 or 2013. However, practically speaking, only taxpayers who have not yet filed (including extensions) their 2013 returns appear to be able to benefit from the automatic consent procedures provided in Rev. Proc. 2014-17.
March 19, 2014
February 28, 2014, the IRS issued Rev. Proc. 2014-17 detailing long anticipated
guidance regarding certain changes in method of accounting for depreciable
tangible property under the final, temporary, and proposed tangible property
regulations. Rev. Proc. 2014-17 updates Rev. Proc. 2011-14 and supersedes prior
guidance provided in Rev. Proc. 2012-20.
February 27, 2014
In Route 231 v. Comr., T.C. Memo 2014-30, the U.S. Tax Court held that a contribution of $3.8 million from an LLLP (X) to an LLC (Y) taxed as a partnership in exchange for (1) Virginia tax...
February 12, 2014
On February 11, 2014, the Court of Appeals for the D.C. Circuit ruled on the Loving decision regarding registered tax return preparers (RTRPs). The court upheld the district court, holding that...
January 30, 2014
A recent tax court
decision changes the common understanding of the “one-rollover-per-year” rule, potentially
resulting in a new restriction on IRA rollovers. Code §408(d)(3)(B)
January 29, 2014
In an earlier blog, I discussed and analyzed oral arguments presented to the U.S. Supreme Court in Heimeshoff v. Hartford Life & Accident Ins. , No. 12-729 (10/15/13). See ...
December 2, 2013
Are undistributed partnership allocations attributable to a transferred nonvested partnership capital interest allocated to the holder of the nonvested partnership interest or to the partners in...
November 26, 2013
On November 26, 2013, the U.S. Supreme Court agreed to consider whether the Affordable Care Act's preventive services mandate, which requires health insurance plans to cover contraceptives, violates...
November 6, 2013
Can an individual really be penalized for signing up for health insurance through the Health Insurance Marketplace during open enrollment? Thanks to a good idea--the extension of the initial open enrollment period through March 31, 2014--it looked like the answer could be “yes.”
October 22, 2013
On October 15, 2013, the U.S. Supreme Court heard oral arguments in Heimeshoff v. Hartford Life & Accident Ins. Co. , No. 12-729 (10/15/13). The case involved a dispute over a contractual...
October 17, 2013
For plan years beginning on or after January 1, 2014, the Affordable Care Act prohibits health insurance companies from denying health insurance coverage based on preexisting conditions and from refusing to provide or renew coverage. While these are not new protections, the Affordable Care Act increases their availability
October 11, 2013
Starting in 2014, small employers may chose to make health-care coverage available to their employees through the Small Business Health Options Program (SHOP). The SHOP Exchange, also known as a SHOP Marketplace, allows the employer to select qualified health plans in the small group market from which employees may get coverage. The employer chooses
by Kenneth S. Savell
The Court of Federal Claims recently found that, although a
partnership’s tax returns included false or fraudulent items resulting from
transactions fraudulently structured by the taxpayers’...
September 19, 2013
by Stephanie Fiumara
For a second year, Bloomberg BNA has released projected inflation-adjusted amounts for thresholds,
limits and deductions in the tax code using data from the consumer price index
In DOL Technical Release 2013-04, the DOL clarified that, for purposes of ERISA and certain Internal Revenue Code provisions that the DOL interprets, the term "spouse" will include any individuals...
September 17, 2013
The DOL is considering a proposal to require pension benefit statements for defined contribution retirement plans to show the current balance of a participant's retirement account, as well as a...
September 13, 2013
An employer must furnish current employees with written notice of their health coverage options by October 1, 2013, if the employer is covered by the Fair Labor Standards Act (FLSA). The Affordable Care Act added this requirement which tells employees about health insurance Exchanges, also called Health Insurance Marketplaces, and employer-sponsored health plan options. An employer must furnish current employees with written notice of their health coverage options by October 1, 2013, if the employer is covered by the Fair Labor Standards Act (FLSA). The Affordable Care Act added this requirement which tells employees about health insurance Exchanges, also called Health Insurance Marketplaces, and employer-sponsored health plan options
September 9, 2013
Breaking up is hard to do, but a little planning can go a long way. For example, in Kumar v. Commissioner , T.C. Memo 2013-184, the Tax Court ruled that a minority shareholder of an S corporation...
September 5, 2013
About 40% of senior financial executives, responding to a survey by Prudential Financial Inc, indicated that they will “seriously consider” transferring their company’s defined benefit plan risk...
August 30, 2013
On September 18, 2013, Bloomberg Law will host a discussion, featuring former U.S. Congressman Phil English and former U.S. Senator Byron Dorgan, just as Congress begins to prepare for the release...
August 29, 2013
On August 29, 2013, in IR-2013-72, the Treasury and the IRS announced that same-sex couples that were legally married in a state or jurisdiction that recognizes same-sex marriages will be treated...
August 26, 2013
Bloomberg BNA launches its new Premier State Tax Library in response to the increased importance of state and local tax planning. This library includes the following new products and tools: ...
August 19, 2013
by Sharon Fountain
An employee dies leaving behind an employer-sponsored qualified retirement account. The same-sex spouse and the parents of the employee both make claims for the benefits. The state in which the...
August 16, 2013
On August 5, in John Hancock Life Ins. Co. v. Commissioner , 141 T.C. No. 1 (8/5/13), the Tax Court ruled for the first time on the income tax consequences of lease-in-lease-out (LILO)...
by J. Patrick Becker
Recently issued proposed rules addressing requests for
equitable spousal relief under §6015 (see REG-132251-11 , 78 Fed.
Reg. 49242 (8/13/13)), would make permanent a 2011
IRS Encourages Practitioners to Get Rid of Circular 230 Disclaimers in E-mails, Other Written Communications
Protection Required – Agencies Issue Guidance on Notice Requirements When Dropping Preventive Services
Implementation of 2014 Puerto Rico Tax Prepayments by Plan Sponsors Is Optional
Hacienda Issues Administrative Determination Letter Detailing Procedures for 2014 Prepayments of Puerto Rico Retirement Plan Amounts
Redemptions of Shares in Floating NAV MMFs Are Exempted from Wash-Sale Rules