Features

October 20, 2016
Our October CALT Brief provides a summary of important agricultural law and taxation happenings this past month: health insurance, Chapter 12, fence law, minister's housing allowance, and more! Thanks for reading!
October 10, 2016
Some PTIN holders were concerned by an email notice they recently received regarding a class action purportedly filed on their behalf. Class action notice authorized by a D.C. federal court was was sent to PTIN holders via email on 10/7...
October 5, 2016
On October 3, 2016, the Appeals division of IRS implemented changes to its case transfer and conference procedures. The agency issued a fact sheet to explain the changes. Anyone handling a taxpayer appeal should review the new guidance.
September 16, 2016
In light of a recent scam, tax preparers should take careful time to study authentic IRS correspondence, particularly the CP2000. We've recently received a copy of a fraudulent letter that could seem very authentic to an unwary recipient. Beware!
August 26, 2016
IRS has made it a lot easier for taxpayers and plan administrators to deal with the all-too-common missed 60-day IRA rollover window. In IRS Rev. Proc. 2016-47, IRS simplifies the waiver process and eliminates the need for a private letter ruling.
August 4, 2016
Illinois HB 5527, signed into law July 28, 2016, grants the Illinois Department of Revenue authority to establish procedures requiring that the IRS PTIN number be included on Illinois income Tax returns or claims for refunds.
August 3, 2016
IRS has acquiesced in a 9th Cir decision allowing unmarried people to each deduct the limit of qualified residence interest. So, unmarried taxpayers can deduct interest paid on a $2M home purchase, while married taxpayers are limited to interest for $1M.
July 28, 2016
Fiscal Year 2016 Statutory Review of Compliance with Notice of Federal Tax Lien Due Process Procedures, released July 7, 2016 was a mixed review of the IRS Federal Lien Process.
July 13, 2016
It is that time of year again. The Form 2290, Heavy Highway Vehicle Use Tax, for the July 2016 to June 2017 tax period, filing season is just beginning. And IRS is encouraging all taxpayers to take advantage of the e-filing option.
July 8, 2016
Taxpayer Advocate Nina Olson has issued her mid-year report to Congress. While the 2016 filing season generally ran much more smoothly than the 2015 season, the report notes several concerns moving forward. It also highlights points of emphasis for 2017.
June 30, 2016
IRS recently released guidelines on how wrongfully-incarcerated taxpayers can take advantage of the new retroactive exclusion from income for any civil damages, restitution or other monetary award received in connection with their incarceration.
June 27, 2016
The IRS Get Transcript application was recently upgraded and went live in June 2016, after being disabled on May 21, 2015 due to fraudulent activity.
June 21, 2016
Injured spouse applications are commonly filed to protect a spouse from another spouse’s debt. The debt can be for enforceable past-due federal tax, state income tax, state unemployment compensation debts, child or spousal support...
June 1, 2016
Form 1023-EZ can be used by some organizations to apply for exempt status under IRC § 1023-EZ.
May 12, 2016
Beginning January of 2017, IRS will begin to provide notification to individuals whose social security numbers have been used for employment purposes by a third-party.
May 11, 2016
RS is requesting comments on Form 706-A, United States Additional Estate Tax Return
May 10, 2016
IRS recently issued T.D. 9766, temporary regulations effective the later of August 1, 2016 or the first day of the latest starting plan year following May 4, 2016, to clarify the treatment of partners in a partnership that owns...
May 9, 2016
An April 12, 2016, TIGTA report may result in more audits of “hobby loss.” The audit was a follow up to a 2007 study to discover if IRS had improved its Form 1040 Schedule C loss audits resulting...
May 6, 2016
Section 6325(a) of the Internal Revenue Code directs IRS to release a Federal tax lien within 30 days of when the liability is fully paid or becomes legally unenforceable or the IRS accepts a bond for payment of the liability.
May 4, 2016
Chief Counsel Memorandum 201615012 provides guidance on whether penalties can be assessed for providing an invalid taxpayer identification number on Form 1042-S...
May 3, 2016
SB 106, signed into law on March 22, 2016, requires remote sellers with no physical location in South Dakota to remit sales tax and follow all procedures of the law.
May 2, 2016
IRS is requesting comments for Form 14420 (Verification of Reported Income) to help make Form 1099-K audits easier for tax professionals. Also, Form 8554 has been revamped and IRS is asking input concerning the form.
April 28, 2016
A recent case reaffirmed that Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent must be present to claim a child as a dependent.
April 20, 2016
In Cosentino v. Commissioner, T.C. Memo 2014-186, the Tax Court found that a couple’s settlement they received from an accounting firm to compensate them for bad tax advice was nontaxable.
April 15, 2016
The changes to social security benefits effective May 1, 2016, are scary, or at least that is what most of the internet articles would have you believe. In the overall scheme of social security benefits, the changes merely balance the playing field...
April 14, 2016
n a recent hearing before Congress, TIGTA released information on federal government cyberattacks in 2015. The cyber-attacks continue to grow yet IRS cybersecurity is not where it needs to be.
April 13, 2016
We've discovered there is some confusion out there regarding who pays self-employment tax on CRP income. Remember, Congress has excluded all CRP payments from self-employment tax for individuals receiving social security benefits.
April 12, 2016
IRS is authorized to list private delivery services for which taxpayers can use the postmark date as the filing date of their returns and other filings. Yesteday, IRS added eight DHL services to the list.
April 11, 2016
IRS has announced that it will launch a new online taxpayer account system in late April. It also plans to put "Get a Transcript" back online soon after a long hiatus. While this online access is helpful, taxpayers are right to worry about identity theft.
April 8, 2016
You still have time to make that IRA contribution for 2015. For this year and this year only we have until April 18, 2016, to make that contribution and have it be eligible for an adjustment to 2015 income if it meets the other requirements.
April 7, 2016
They are frequent inconveniences during tax filing system. Many times they are straightforward and clear. But sometimes IRS Notices and Letters just make no sense. Read Kristy's helpful overview of understanding the IRS Letter and Notice process.
April 6, 2016
The PATH Act required some adjustments when calculating the additional first year's depreciation, as well as the inclusion for leased vehicles. See the depreciation limits here.
February 11, 2016
Governor Branstad signed HF 2433 into law on March 21. This is full coupling with federal tax provisions for 2015 (with the exception of bonus depreciation). This includes a $500,000 enhanced Section 179 deduction. This coupling is for one year only.
December 31, 2015
As the 2016 filing season begins, it's a good time to review issues that will be impacting your clients' returns this year. Kristy has created a webinar to make this process easier. In this 1.5 hour replay, viewers are equipped to better face the season.
October 26, 2015
On December 28, 2015, IRS extended the deadlines for employers required to file Forms 1095-B and 1095-C. This means individual taxpayers may not receive their coverage information forms until after they file their returns. Check out our summary chart.

October CALT Brief is Out!

October 26, 2015
Our October newsletter is out. Read about entity planning for farmers in light of the net investment income tax, the upcoming hearing on the proposed crude oil pipeline, and much more!
August 27, 2015
Affordable Care Act, Repair Regulations, Farm Income A-Z, HSAs, the list goes on of the webinars we're offering this fall. And, if you miss a live webinar, catch the replay on TaxPlace. We're still offering a one-year subscription for just $150.
August 13, 2015
The IRS has just released TD 9730, which eliminates the automatic 30-day extension for most W-2 forms. This change applies to returns due after December 31, 2016. Employers may still request one nonautomatic 30-day extension.
May 29, 2015
It's been a busy month. Read our latest newsletter detailing some of the significant events impacting agricultural and tax law. Included is an overview of the ag exemption in workers comp and highlights of recent clean water litigation.
April 1, 2015
The Minnesota Department of Revenue announced special relief last week for poultry producers in Minnesota who were impacted by the H5N2 avian influenza outbreak. These producers will not be assessed penalties or interest if they missed tax deadlines.
March 13, 2015
Following the February 18 repair regulations webinar, a number of questions were asked regarding the new repair regulations. Roger McEowen and Paul Neiffer collaborated to provide answers to 109 questions in this comprehensive document.
March 2, 2015
It appears that IRS ID Theft Filters are working overtime this season, kicking out thousands of letters about possible ID Theft. Kristy has put together an article to guide you if you receive a letter or are helping clients with identity theft issues.
February 13, 2015
IRS and CMS reported on Feb. 20, 2015, that about 20% of issued 1095-A's were incorrect. Taxpayers who received them are being contacted and will receive new forms in March. They are to wait to file. If already filed? Further guidance from IRS to come!
January 27, 2015
IRS has issued Notice 2015-9 offering relief from penalties associated with an overpayment of the advance premium tax credit in many cases.If proper steps are followed, penalty is waived and taxpayers have until April 2016 to repay the excessive credit.
December 11, 2014
In the wake of CoOportunity's collapse, IRS has issued Notice 2015-08 stating that small Iowa employers who offer plans that would have qualified for the small business tax credit prior to 2014 can take credit in 2015 if they are without SHOP option.
October 31, 2014
The House of Representatives passed the "Tax Increase Prevention Act of 2014" on 12/3/14 by a vote of 378-46. This bill now moves to the Senate. If enacted, this legislation would extend $500,000 Section 179 expensing and bonus depreciation through 2014.
October 27, 2014
At the end of October, the IRS and the Social Security Administration issued several important updates for 2015. Included in these updates are 401(k) and IRA contribution limits, the wage base for social security, and more.
October 15, 2014
When livestock producers receive indemnity payments from the USDA as compensation for the death of breeding livestock, how is that reported? Can a portion of the proceeds be allocated to Form 4797? Read our Question Spotlight for a detailed answer.
October 3, 2014
The Eighth Circuit Court of Appeals has reversed the tax court's opinion in Morehouse v. Commissioner and has ruled that CRP payments to non-farmers are rents from real estate, not subject to self employment tax. Read our analysis on the CALT website.
August 6, 2014
We are very excited to introduce TaxPlace, a 24-7 resource for tax professionals, especially those preparing farm tax returns. For a limited time, we are offering a yearly subscription for the low introductory price of $150. We hope you'll join us!

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

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