Ed Zollars' Tax Update Podcast Podcasts

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Trumix.com listings available of Ed Zollars' Tax Update Podcast Podcasts Build your own playlists with this podcast. IRS Releases New FAQ on HSAs The IRS has issued new guidance in the form of a series of questions and answers related to Health Savings Account in Notice 2008-59.  This podcast goes over the various items covered in this notice, and some of the planning and design opportunities available under this notice.Written materials for this podcast can be downloaded from http://www.edzollars.com/2008-06-30_HSA_Guidance.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimberg ... Listen | Listen in your iPhone | Download | View full cache | Proposed Regulations for Preparer Penalties - Part Two This is part two of a series of two podcasts on the proposed regulations for preparer penalties released recently.  .The materials are at http://edzollars.com/2008-06-23_Penalty.pdf .The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Proposed Regulations for Preparer Penalties - Part One This is the first of what will be a series of two podcasts on the proposed regulations for preparer penalties released here recently.  Considering the length of the regulations and podcast, the first hour is in this file to listen to and digest, with part two to be posted later in the week.The materials are at http://edzollars.com/2008-06-23_Penalty.pdf .The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Who is Knocking at Your Door? Computer Security for Financial Professionals Securing our client's data is the responsibility of all of those in tax practice. This past week I gave a presentation at the Arizona Society of CPA's Financial Planning Conference on this matter, and that presentation serves as the basis for this week's podcast.The slides used for this presentation are available at http://www.edzollars.com/2008-06-16_Knocking.pdf .The podcast is sponsored by Leimberg Information Services, located at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Step or No Step-Holman Case This week we look at the step transaction doctrine and where the line is drawn when we deal with the application of the step transaction doctrine in the formation of a family limited partnership.  The IRS attempted to use their victory in the Senda case to get the same result in the case we'll look at this week, Holman v. Commissioner, 130 TC No. 12.  But in an opinion that reminds of the importance of the facts of the specific case in question, the Tax Court refused to take that ... Listen | Listen in your iPhone | Download | View full cache | Poor Records Not Equated to Fraud This week we look at a Court of Claims case that deals with an IRS examination and the imposition of the fraud penalty--a penalty the Court of Claims found was not justified.  The case is the one of Gagliardi v. United States, 2008 TNT 98-20, and is instructive both in the outline of the law, as well as allowing us to consider the ways an examination like this could spin out of control and result in a taxpayer being assessed the fraud penalty in a case like this.The materials can be do ... Listen | Listen in your iPhone | Download | View full cache | Not a Mere Technicality-SEP Disqualified Simplified employee pensions (SEPs) are a popular retirement plan for extremely small businesses, with one of the key attractions being that don't require many of the formalities of regular qualified plans.  But that has led to taxpayers treating them too informally, and in the case we look at this week (Brown v. Commissioner, TC Summary 2008-56) a taxpayer discovered the hard way what can be the consequences of failing to faithfully follow the simplified rules for this type of plan.Th ... Listen | Listen in your iPhone | Download | View full cache | Partnership Liabilities, Tax Shelters and Different Views of the Same The Fifth Circuit came down with a ruling in Kornman & Associates, Inc. v. United States on whether a taxpayer who set up a Son of BOSS style shelter would get the benefit that was expected--and the taxpayer was disappointed.  The case offers a chance to review the unusual impact that liabilities have in a partnership context, as well as the question of just what is a liability for this purpose.The materials for this podcast can be downloaded at http://www.edzollars.com/2008-05-19_ ... Listen | Listen in your iPhone | Download | View full cache | All IRS Employees Are Not Equal Since we've discussed mailing returns in previous podcasts, this time we look at the problems a taxpayer who tries to hand file a return can run into getting that done correctly.  In the case of Allnut, Sr. v. Commissioner, 2008-1 USTC Â50,310 the taxpayer failed to make delivery as required by the regulations, and the court found that what the taxpayer had to live with the date a document could finally be documented as being in the District Director's office--which was less than year ... Listen | Listen in your iPhone | Download | View full cache | Sloppiness and the Tax Shelter Partnership taxation is one of those areas where things may not work exactly as many practitioners expect, and those unexpected workings are things that tax shelter promoters have attempted to make use of.  But if you are going to try and use the technical details of the tax law to force the IRS to grant you a tax benefit that otherwise doesn't seem like something that should happen, it's helpful to follow the detailed requirements yourself.  Unfortunately for the taxpayer in 7050 ... Listen | Listen in your iPhone | Download | View full cache | Qualified Joint Venture and Memo on Self-Employment Tax This week we follow the continuing saga of the self-employment tax and qualified joint venture that we've been following since the early part of this year.  This week we analyze CCA 200816030 issued by the IRS that outlines the "new improved" IRS position on self-employment tax and the Qualified Joint Venture election under Â761(f).The materials for the podcast are available at http://www.edzollars.com/2008-04-28_SEandQJV.pdf .The podcast is sponsored by Leimberg Information ... Listen | Listen in your iPhone | Download | View full cache | The Mailbox Rule Comes Up Once Again The issue of whether Â7502(c) provides the exclusive means to prove timely filing of a document by a taxpayer is addressed yet again by the courts--and what the Third Circuit had to say, the IRS didn't like hearing.  In the case of Philadelphia Marine Trade Ass'n.-Int'l Longshoremen's Association Pension Fund et al. v. Commissioner, 2008 TNT 74-16 the Third Circuit held that the reports of the death of the common law mailbox rule were, in the words of Mark Twain, greatly exaggerated.& ... Listen | Listen in your iPhone | Download | View full cache | Was it a Gift or Compensation? The Tax Court Knows After a hiatus at the end of tax season, we return with a new show dealing with an issue of whether a payment to a person was compensation income or a gift.  The case in question is the case of Larsen v. Commissioner, TC Memo 2008-73.The materials for the podcast are at http://www.edzollars.com/2008-04-16_GiftorComp.pdf.We also briefly discuss an interesting episode of a podcast I found on small service business operating issues at a place you might not look--check out http://macbreakt ... Listen | Listen in your iPhone | Download | View full cache | Upon Further Review-Self-Employment Tax Issues The self-employment tax is our topic for this week, specifically dealing with two topics.  We revisit an issue last visited in the early days of the podcast (back in June 2005) of the treatment of LLC members for self-employment tax purposes.  We look specifically at the case authorities we have (which are scant, and not terribly promising for LLC members), the IRS's proposed regulations that were controversial when issued, and what options exist for dealing with the issue today.A ... Listen | Listen in your iPhone | Download | View full cache | CPA Says Error, IRS Says Accounting Method The question of whether a problem on a return was an error or a method of accounting is important, as we'll discuss this week looking at the Sixth Circuit's ruling in the case of Huffman v. Commissioner, where the appeals court sustained the 20006 ruling of the Tax Court (126 TC 322) that the CPA's consistent flawed attempt to calculate inventory as prescribed by the regulations for the dollar-value, link-chain LIFO method.  The resolution of this matter in favor of the IRS allowed the ... Listen | Listen in your iPhone | Download | View full cache | Risky Business - LLC Debt Restoration Provision Fails to Provide At Risk Status This week we look at the Tax Court's second pass at the case of Hubert v. Commissioner, TC Memo 2008-46, a case that sent back to the Tax Court by the Sixth Circuit Court of Appeals to decide if the LLC debt restoration provision made the taxpayer the payer of last resort under the Sixth Circuit's test.  The Tax Court comes back saying no.The materials can be found at http://www.edzollars.com/2008-03-10_Risky_Business.pdf .The podcast is sponsored by Leimberg Information Services, loca ... Listen | Listen in your iPhone | Download | View full cache | Safe Harbor for Section 1031 Exchanges The IRS has issued a safe harbor treatment for Â1031 exchanges involving property that previously had or subsequently has personal use.  Revenue Procedure 2008-16 outlines the tests taxpayers can meet to be given safe harbor status on the question of the properties being held for investment or business use to qualify for Â1031 status.The materials for the podcast can be found at http://www.edzollars.com/2008-03-02_1031_Exchange.pdf .The podcast is sponsored by http://www.leimbergserv ... Listen | Listen in your iPhone | Download | View full cache | Not Quite Good Enough-Timely Filing One More Time We revisit the issue of what exactly is timely filing, revisiting an issue last covered in a podcast back in October of 2005.  This time we look at the Tenth Circuit's opinion in the case of Gibson v. Commissioner, a case that illustrates how a taxpayer who thought he was complying with the requirements to prove a timely filing of his Tax Court petition managed to find a way to not get the benefit he thought he had.The materials are available at http://www.edzollars.com/2008-02-25_Time ... Listen | Listen in your iPhone | Download | View full cache | Transforming Rental Income to Self-Employment Income - Qualified Joint Ventures This podcast was originally recorded to go up last week, but the new tax bill displaced it so a week late we'll look at something that might have escaped your notice in the tax bill passed last May.  This podcast discusses an issue highlighted in, of all places, the instructions to Form 1065.  The issue is the side effect that occurs when married taxpayers holding rental property in an LLC or other form eligible to elect Qualified Joint Venture Treatment under Â761(f) elect to be ... Listen | Listen in your iPhone | Download | View full cache | Economic Stimulus Package of 2008 (Tax Matters) Congress passed the Economic Stimulus Package of 2008 this week that makes a few, but significant, tax law changes for 2008.  This podcast talks about what Congress did and what we need to do about it.Materials are available at http://www.edzollars.com/2008-02-09_Economic_Stimulus.pdf .The podcast is sponsored by Leimberg Information Services at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | So You Want Your LLC to Be An S Corporation A listener who was following along in some discussions on the Arizona Society of CPAs sent me an email suggesting that perhaps it might be useful to look at the issues involved with LLCs and S corporations.  This week we will look at this issue, one that often doesn't get covered well since the topic cuts across what is often covered in partnership discussions (the use of LLCs) and S corporations (where often LLCs are presented as an alternative to, rather than a potential form of, an ... Listen | Listen in your iPhone | Download | View full cache | A Capital Idea-But Not In the Eyes of the Court The issue of what is a capital asset is looked at in the Ninth Circuit's decision in Trantina v. United States, 2008 TNT 7-8.  In this case, an insurance agent was arguing that payments received from State Farm should have been taxed to him at capital gain rather than ordinary income rates.  Unfortunately, the United States District Court disagreed with the taxpayer, and the Ninth Circuit did so as well.The materials are at available for download at http://www.edzollars.com/2008-0 ... Listen | Listen in your iPhone | Download | View full cache | Consenting to Disclosure or Use of Return Information This week we look at Revenue Procedure 2008-12 and final regulations under Â7216, both of which deal with taxpayer authorizations for the use or disclosure of tax return information by tax preparers.  The new regulations contain a number of new requirements that will be imposed on tax preparers, and the Revenue Procedure contains specific language that must be used for taxpayers who are filing the Form 1040 series of forms.  These new requirements will take effect on January 1, 2 ... Listen | Listen in your iPhone | Download | View full cache | Knight Time for Investment Fees in Trusts The Supreme Court today decided the issue of whether investment fees paid by a trust was subject to the 2% of adjusted gross income limitation.  The Supreme Court in Knight v. Commissioner held that expenses are to be tested to determine if they are expenses that would not commonly or customarily be incurred by an individual--and only if they pass that test do they avoid the 2% limitation.The materials are available for download at http://www.edzollars.com/2008-01-17_Knight_Time.pdf .T ... Listen | Listen in your iPhone | Download | View full cache | Economic Substance, Promissory Notes and Partnerships We look at a case where the IRS failed in an attempt to argue that a transaction had no economic substance or otherwise failed under the anti-abuse partnership regulations.  The case is Countryside Limited Partnership v. Commissioner, TC Memo 2008-3 where the taxpayers used the partnership distribution rules to allow two partners to have their interests in the partnership liquidated with no tax cost just prior to the partnership selling a significant asset at a gain.The materials are l ... Listen | Listen in your iPhone | Download | View full cache | Debt Relief, Recourse Mortgages and Tax Research We look at a case that illustrates the application of Section 108 in a situation with recourse debt.  While this case would likely have been covered by the relief in the Mortgage Foregiveness Debt Relief Act of 2007 if the property had been taken in 2007, it's still useful to review since many foreclosures won't qualify for the newly passed relief, but may still meet the insolvency test that worked for the taxpayers in this case.The case is Keith v. Commissioner, TC Summary 2007-214 wh ... Listen | Listen in your iPhone | Download | View full cache | IRSâs New View on §§6694 and 6695 The IRS celebrated the end of 2007 by releasing three Notices late on December 31 that provide guidance on the application of the revised preparer penalties contained in the Small Business and Work Opportunity Tax Act of 2007 that was passed last May.  The IRS had previously released interim relief in Notice 2007-54, but that relief was set to expire as 2007 did.The centerpiece of this guidance is Notice 2008-13, which provides interim guidance on applying the Â6694 preparer penalty s ... Listen | Listen in your iPhone | Download | View full cache | Class Warfare in the Family (with an S Corporation) In this podcast, we look at a case where a shareholder attempted to argue that, in fact, the S corporation's election had been terminated a decade before due to an agreement with the founding shareholder that, in the taxpayer's view, created a second class of stock.  The case is Minton v. Commissioner, T.C. Memo 2007-372.  The shareholder is not successful, though she does eventually succeed in unilaterally ending the S status of the corporation.  We'll look at both why the T ... Listen | Listen in your iPhone | Download | View full cache | End of Year Trifecta of New Tax Bills In this podcast we look at highlights of three of the five bills affecting taxation that Congress passed prior to leaving town, specifically the Tax Increase Prevention Act of 2007, Mortgage Forgiveness Debt Relief Act of 2007 and Tax Technical Corrections Act of 2007, all three of which have provisions that should be of interest to many of your clients.  The written materials for the podcast can be downloaded from http://www.edzollars.com/2007-12-29_New_Laws.pdf .The podcast is sponso ... Listen | Listen in your iPhone | Download | View full cache | Home is Where the Partnership Isn't In a recent Tax Court decision on the home sale exclusion under Section 121, the IRS and the taxpayers split the decision--the IRS lost in its attempt to claim the taxpayer did not use the property in question as his principal residence, but the taxpayer lost a portion of the deduction because a portion of the property was titled in the name of a partnership--and the court did not buy the taxpayer's theories that either the partnership was never formed or that the property had been distribu ... Listen | Listen in your iPhone | Download | View full cache | S Corporation Owner Health Insurance Deduction The IRS has issued Notice 2008-1 that details how an S corporation shareholder can qualify for the self-employed health insurance deduction under Â162(l) even if the policy is in the name of the shareholder. The notice is at odds with the implication contained in IRS Headliner 163 issued in May of 2006 that seemed to many to strongly suggest that personal ownership of the policy was fatal to the deduction. We had previously discussed why, perhaps, that wasn't the case in a podcast back i ... Listen | Listen in your iPhone | Download | View full cache | Washing Out a Loss-IRS Rules on IRA's Relationship to Section 1091 After a not so short hiatus, the Tax Update podcast is again posted, this time looking at IRS Revenue Ruling 2008-5 that deals with issue of a taxpayer selling securities at a loss in a taxable account and then purchasing identical securities in a regular or Roth IRA.  The issue is one that practitioners have discussed for years, but which the IRS just now is getting around to issuing a formal ruling on.The written materials for the podcast can be downloaded at http://www.edzollars.com ... Listen | Listen in your iPhone | Download | View full cache | Rolling Changes: IRS Releases Two Revisions to Circular 230 10.34 Two days, two revisions:  the IRS on September 25 issued proposed regulations to revise Circular 230 Â10.34, and the next day finalized regulations that also made changes to the same provision (among others).  We take a look at both sets of changes, and their impact on tax practice.The materials can be downloaded from http://www.edzollars.com/2007-09-26_Circular_230.pdf .The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Total Devastation-Damage to a Residence and Eligiblity for Section 121 The IRS released a Chief Counsel Advice (CCA 200734021) that dealt with how to interpret the language found in Section 121(d)(5) that, in certain cases, will allow a taxpayer to treat a residence that is destroyed as if it were sold for purposes of ignoring up to $250,000/$500,000 of gain under Section 121(a).The materials for this week's podcast are found at http://www.edzollars.com/2007-09-01_Residence.pdf .The podcast is sponsored by Leimberg Information Services, found at http://www.lei ... Listen | Listen in your iPhone | Download | View full cache | North, to Alaska-Thompson, Valuation and Reasonable Cause The Second Circuit Court of Appeals decided that the Tax Court had been too quick to dismiss a penalty under Â6662 in the Estate of Thompson, decided last week, but that the Court was not forced to accept the taxpayer's valuation when it rejected the IRS's own expert's valuation even if the Court had decided the burden had been shifted under Â7491.The materials for the podcast are available at http://www.edzollars.com/2007-08-26_Estate_Tax_Value.pdf .The podcast is sponsored by Leimberg I ... Listen | Listen in your iPhone | Download | View full cache | It Has to Be Something! Tax Court Penalizes Taxpayer for Sloppy Records We once again revisit the Cohan rule, but this time in the context of a much larger taxpayer than we normally look at, in the case of Tyson Foods, Inc and Subsidiaries vs. Commissioner, TC Memo 2007-188.  The taxpayer's was attempting to argue, based on Cohan rationalization, that they should be able to depreciate a $2,000,000+ debit remaining on their books after making an agreed upon adjustment under IRS exam.  The IRS (and eventually the Tax Court) did not agree that such a tre ... Listen | Listen in your iPhone | Download | View full cache | Home Equity of a Different Sort-Claiming Deductions for a Home the Taxpayer Doesn't Own Equitable ownership of a home can grant a taxpayer a deduction for mortgage interest and taxes even when the taxpayer is not the legal owner.  While the taxpayer in the case of Nair v. Commissioner, TC Summary Opinion 2007-116, did not have such ownership, the opinion does outline the requirements a taxpayer would need to demonstrate to have such equitable ownership. As well, Mr. Nair's failed attempt to obtain a casualty loss deduction also offers some insights into the issue of est ... Listen | Listen in your iPhone | Download | View full cache | Substantial Understatementsâthe Penalty under §6662(b)(2) We finish up the look at Â6662, this time looking at the substantial understatement penalty, as well as the exceptions to this penalty. The material for this week's podcast can be downloaded from http://www.edzollars.com/2007-07-09_Substantial_Understatements.pdf. The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com. Listen | Listen in your iPhone | Download | View full cache | The Value of Standards-SSVS No. 1 Released and the Impact on CPAs in Tax Practice For Independence Day we take a look at a new set of standards released by the American Institute of CPAs' Consulting Services Executive Committee that will take effect for engagements entered into after January 1, 2008.  The Statement on Standards for Valuation Services No. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset can have an impact on tax practice where the value of an asset covered by this standard has an impact on a tax issue.  CPAs ... Listen | Listen in your iPhone | Download | View full cache | Section 6662(b)(1) Penalties on Client-A Review Given that in both the changes to Circular 230 paragraph 10.35 back in 2005 and the recent revisions to Section 6694, it seems appropriate to review the penalties that can be imposed on a taxpayer under this section, a section whose outlines of level of comfort in a position have borrowed in revising both of those provisions.  This week we look at Â6662(b)(1)'s negligence and disregard of rules and regulations penalty, planning to look next at the substantial understatement provisions ... Listen | Listen in your iPhone | Download | View full cache | Testing the Limits-The IRS Loses Statute of Limitations Case This week we look at recent cases where the IRS lost a statute of limations case.  In the case of Bakersfield Energy Partners, LP, 128 TC No. 17, the question was whether an overstatement of basis used in computing a Section 1231 gain could result in omission from gross income that triggers the six year statute of limitations under Â6629 and Â6501.   The Tax Court decided the answer was no.The materials can be downloaded at http://www.edzollars.com/2007-06-22_Limits.pdf .Th ... Listen | Listen in your iPhone | Download | View full cache | Delay of Game-IRS Grants Temporary Relief For Section 6694(a) Changes The IRS this past week issued Notice 2007-54 which grants partial relief from some of the changes made to the preparer penalties under Section 6694(a), delaying full implementation of the provisions until next year.  We discuss the extent of the relief granted, as well as some of the reactions to this change that I've noticed in online discussion groups.The materials for this podcast, including the above notice, can be found at www.edzollars.com/2007-06-15_Delay_of_Game.pdf .The podcas ... Listen | Listen in your iPhone | Download | View full cache | Into the Penalty Box-Updated Prepared Penalty Provision in New Law We further analyze the new law, this time looking in detail at the preparer penalty provisions and the change in the trigger for where the preparer penalty under Section 6694(a).The materials are available at www.edzollars.com/2007-06-02_Preparer_Penalty.pdf .The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Kiddie Tax Update: Correction to New Law Podcast Kaye Thomas emailed me with an observation regarding one issue in the new law.  It turns out that though prior drafts of the bill and the Joint Committee's report on the bill indicated expanding the general rule on the Kiddie Tax one more year, that provision is not included in the final bill.  Rather, only the "student" provision is added to the bill. The materials have now been updated, and can be downloaded from the original link at http://edzollars.com/2007-05-25_New ... Listen | Listen in your iPhone | Download | View full cache | On Second Try-Tax Law Changes Come Back After Veto The new Congress has passed its first major tax bill with changes that are meant to grant relief to small businesses, but which also have revenue raisers that will impact a number of clients.  The President has indicated he will sign the bill, so over the Memorial Day weekend we can all read up on the new law to start our summer.The materials are available for download at http://edzollars.com/2007-05-25_New_Law.pdf .The podcast is sponsored by Leimberg Information Services, located on ... Listen | Listen in your iPhone | Download | View full cache | Payment Encore: Liability of Taxpayer for Embezzlement by Payroll Service We look at the recent case of Pediatric Affililates, P.A., (2007-1 USTC Â50,477) where the Third Circuit Court of Appeals upheld the U.S. District Court of New Jersey's determination that the taxpayers were liable for unpaid payroll taxes that their payroll service had walked off with.  The case is instructive for the types of responsibilities under the tax law a taxpayer is unable to delegate to a third party.The materials can be downloaded at www.edzollars.com/2007-05-18_Payroll_tax ... Listen | Listen in your iPhone | Download | View full cache | It Depends-IRS Proposes New Divorced Parents Regulations This week we look at Proposed Regulations under Section 152 to clarify the treatment of divorced parents, regulations that would both serve to document what has developed under the current temporary regulations and case law and add some new quirks-including the ability to revoke a waiver that was to apply to a future year by the custodial parent.The materials for the podcast can be found at http://www.edzollars.com/2007-05-08_Dependent.pdf .  And that noise you hear jingling in the beg ... Listen | Listen in your iPhone | Download | View full cache | Home is Not Where the Heart Is-Section 162(a)(2) A taxpayer without a regular place of business can still obtain a deduction for travel away from home if the taxpayer can establish that he/she has a home.  In two cases (Jason Ayala v. Commissioner and Manuel Ayala, Jr. v. Commissioner) the taxpayers failed to show they had a home and lost the deduction.  But the IRS also failed in its attempt to assess a negligence penalty on these taxpayers.The materials for the podcast can be downloaded from http://www.edzollars.com/2007-04-27 ... Listen | Listen in your iPhone | Download | View full cache | Cost of Bad Practice: IRS Notice Implementing Monetary Penalties Under Circular 230 The IRS on April 23 released guidance on the application of monetary penalties to practitioners, their employers, firms and related entities for violations of Circular 230 as authorized by the American Jobs Creation Act of 2004.  This guidance gives some insight into the IRSâs views on how they will make use of this new enforcement tool, as well as some indication of what the IRS might view as an appropriate quality control system for a tax practice.  If, as expected, SSTS No. 9 ... Listen | Listen in your iPhone | Download | View full cache | An Extension We Don't Want-Tax Preparer's Fraud Taints Return for Statute of Limitation When Section 6501(c) refers to a false and fraudulent return, does the IRS need to show that the taxpayer was involved in the fraud to get the benefit of the unlimited statute of limitations to assess tax?  Or is it enough to show only that the preparer was involved in preparing a false return with the intent to evade tax on behalf of the taxpayer?  That's the issue the Tax Court considered in the case of Allen v. Commissioner, 128 TC No. 4.The supporting materials for this podcas ... Listen | Listen in your iPhone | Download | View full cache | Credit Denied-IRS Attacks Partnership State Tax Credit Shelter The IRS has again issued guidance indicating their displeasure with a marketed shelter that promises benefits via the literal application of partnership provisions in the IRC.  In CCA 200704028 the IRS outlines both the shelter that was marketed that claimed the magic of returning most of the investment via a credit against state taxes and then a capital loss deduction for the investment for federal tax purposes as well.  The IRS outlines three separate rationales for disallowing ... Listen | Listen in your iPhone | Download | View full cache | There's English and There's the IRC-Passive, Active Conduct and Carrying On Congress doesn't necessarily make the law work as consistently as practitioners want it to work.  This week we look at four different provisions in the Internal Revenue Code and their somewhat different view on whether "enough" is being done to get a tax benefit--for Sections 469, 179, 1362/1375 and 1402.The materials for the podcast can be found at http://edzollars.com/2007-02-17_Passive.pdf .The podcast is sponsored by Leimberg Information Services at http://www.leimbergser ... Listen | Listen in your iPhone | Download | View full cache | A Family Affair-Spouses and Medical Reimbursement Plans Back in February of 2006, I did a podcast on medical reimbursement plans and went over the Speltz case where the taxpayer prevailed in a medical reimbursement plan provided for her husband who worked for the taxpayerâs daycare business as an employee.  That was a case where the taxpayer kept excellent records and truly kept track of all the necessary details.  This week the Tax Court gave opinions in two cases where taxpayers were not as meticulous with such plansâand the resu ... Listen | Listen in your iPhone | Download | View full cache | The New and Improved Health Savings Account Congress passed a number of incentives in the Tax Relief and Health Care Act of 2006 meant to make Health Savings Accounts (or HSAs) more attractive to taxpayers.  We'll take a look at the provisions this week and consider their impact on our clients.The materials for the podcast can be downloaded from http://edzollars.com/2007-02-03_HSAs.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | But I Left it at the Hotel-The Late Filing Issue We look at the case of a traveler who got bitten when she attempted to make use of the hotel to get a package picked up by a private delivery service-a package that happened to contain her petition to the Tax Court which she was filing on the last day available.  When the delivery service reported picking up the package the following day, the IRS argued that she had blown her chance to file in Tax Court--and the Tax Court agreed.The case is Austin v. Commissioner, TC Memo 2007-11 and t ... Listen | Listen in your iPhone | Download | View full cache | Literally Too Good To Be True-IRS Memorandum on Partnership Transaction This week we look at an IRS memorandum that argues against the position taken by a taxpayer arguing that his transaction literally complies with Section 731 and 732.  The IRS argued that the transaction, which involved the partnership acquiring a residence for the partner to redeem his interest, actually represented the equivalent of a distribution of cash followed by the purchase of the house--a transaction that would have triggered a significant taxable gain.The materials for this po ... Listen | Listen in your iPhone | Download | View full cache | Put on Notice-IRS Explains the Distribution Provisions in the Pension Protection Act of 2006 The IRS has issued Notice 2007-7 that explains the distribution provisions in the Pension Protection Act of 2006.  In the podcast, we look at some of he provisions contained in this notice that would be of special interest to advisers of closely held businesses and their owners.The materials for the podcast can be downloaded from http://edzollars.com/2007-01-12_IRS_PPA_Notice.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservic ... Listen | Listen in your iPhone | Download | View full cache | When Did That Happen? Options and Exercise Date? Sometimes life just doesn't seem fair.  Like when you exercise stock options from your former employer, and the stock price drops 20% from the date you told your employer to exercise the options until just a few days later.  And, even worse, at the last minute you revoked instructions to your former employer to immediately sell the shares upon exercise and instead decided to hold the shares.  In this case, the taxpayer attempted to salvage something from this by arguing that ... Listen | Listen in your iPhone | Download | View full cache | Maybe Not Better Late Than Never-Mark to Market Election under Section 475(f) The mark to market election under Section 475(f) can have a major impact for individuals that were unsuccessful in their attempt to become a day trader-which turns out to be the majority of those who try.  However, the election has rather strict requirements on when the election must be filed, and as the taxpayer in Knish v. Commissioner, TC Memo 2006-268, learned as he tried to unsuccessfully argue for the validity of his election filed 18 months after the date that Revenue Procedure ... Listen | Listen in your iPhone | Download | View full cache | Timing is Everything-IRS Issues Year End Expense Guidance This week the IRS decided to send a warning to accrual basis taxpayers that the IRS has some very specific ideas on the proper application of the recurring item exception.  We look at Revenue Ruling 2007-3 and the issues it raises for deductions on contracts entered into near year end.The materials for this podcast can be downloaded from http://edzollars.com/2006-12-23_Accrued_Expenses.pdf .The podcast is sponsored by Leimberg Information Services . Listen | Listen in your iPhone | Download | View full cache | Giving Credit Where Credit is Overdue-Holiday AMT Gift Congress got around to passing the extenders in the Tax Relief and Health Care Act of 2006 early on Saturday morning, which picked up a number of the items that expired at the end of 2005 and had not yet been extended.  One provision added in the bill gives relief to individuals who have old, unused minimum tax credit which is discussed in this podcast.The materials can be downloaded at http://edzollars.com/2006-12-09_Giving_Credit.pdf .The podcast is sponsored by Leimberg Information ... Listen | Listen in your iPhone | Download | View full cache | The Dictionary vs. the Regulations-Active Participation in Retirement Plans The issue of whether an individual is or isn't considered an active participant in a retirement plan can be complex, as the taxpayer found out in the case of Colombell v. Commissioner, TC Summary 2006-184.  As the taxpayer discovered, the mere fact she was not earning any benefit under the plan (nor was she likely ever to do so) did not mean she was not an active participant, as the regulations define that term.The materials can be downloaded from http://edzollars.com/2006-12-02_Partic ... Listen | Listen in your iPhone | Download | View full cache | Close Doesn't Count-Accountable Plan Rulings Given that the IRS and courts had a short week, we look back this week at a ruling from a few weeks back, as well as a related ruling from a year ago, that deal with the accountable plan rules, and how the IRS interprets the options for implementing those rules.  We look at Revenue Rulings 2006-56 and 2005-52.The materials can be downloaded at http://edzollars.com/2006-11-25_Accountable_Plan_Per_Diem.pdf .The podcast is sponsored by Leimberg Information Services, on the web at http://w ... Listen | Listen in your iPhone | Download | View full cache | A Ringing in Your Ears-Telephone Tax Refunds and Businesses The IRS has released a simplified method that businesses can elect to use to compute the amount of their refund for the federal long distance excise tax that the IRS finally agreed the law did not allow them to collect.  The simplified method is elective, and uses April and September 2006 phone invoices to compute a percentage that is applied to all telephone expense throughout the relevant period.Materials, including the IRS notice and questions and answers, can be downloaded at http: ... Listen | Listen in your iPhone | Download | View full cache | To 83(b) or not to 83(b)-That is the Question 83(b) elections were all the rage, especially for those with stock options during the dot com bubble--and now many of those individuals regret the election.  This week the Tax Court considered the case of Anthony Kadillak (Kadillak v. Commissioner, 127 TC No. 13) who sought to escape the consequences of his 83(b) election and subsequent forfeiture of a portion of the shares through various means. The materials can be downloaded at http://edzollars.com/2006-11-11_83b_and_AMT.pdf .I'm go ... Listen | Listen in your iPhone | Download | View full cache | Sorry, But No Dice-Reliance Upon a Tax Professional Co-Administrator The podcast this week deals with the case of Estate of Landers, TC Memo 2006-230, where an estate's co-administrator attempted to seek a finding that there was reasonable cause for late filing based upon his reliance upon his (now deceased) co-administrator, who was a tax professional, and who suffered a broken hip two months before the extended due date of the estate tax return.The case offers a look at what does and doesn't constitute reasonable cause for late filing, as well as the issue ... Listen | Listen in your iPhone | Download | View full cache | Plain Speaking: General Powers of Appointment, the GST and Grandfathered TRA86 Trusts The Tax Court this week reasserted its previously stated position on the treatment of the GST grandfathering provision for trusts in existence on September 25, 1985 when a party holds a general power of appointment under that trust.  The Tax Court held that the IRS final regulations that treat such a power as removing the trust transfers from the protection of the grandfathering provisions are valid, despite cases decided by the Eighth and Ninth Circuit where it was held the plain lang ... Listen | Listen in your iPhone | Download | View full cache | Take That, Private Annuities! New IRS Proposed Regulations The IRS has proposed regulations that will radically change the taxation of private annuities, making Revenue Ruling 69-74 obsolete as of October 18.  We discuss the new treatment the IRS is proposing, and how it would impact such transactions.This week we also summarize some other recent developments, including the new updated numbers for qualified plan limitations.The materials can be downloaded at http://edzollars.com/2006-10-21_Annuity.pdf .The podcast is sponsored by Leimberg Info ... Listen | Listen in your iPhone | Download | View full cache | Letâs Try This Again-Another AMT Capital Loss Theory Loses In a relatively slow tax news week, the Tax Court issued yet another published opinion dealing with the coordination of the capital loss rules of Â1211 and the alternative minimum tax.  In the case of Palahnuk v. Commissioner, 127 T.C. No. 9 the Tax Court once again dashed the hopes of a taxpayer who exercised highly appreciated incentive stock options only to see their value plummet before the year had expired that would allow the taxpayer to sell the shares and get long term capital ... Listen | Listen in your iPhone | Download | View full cache | A Little Bit of This and That-Signing Returns, Alimony and 409A Reprieve This podcast covers a number of recent tax developments, including dealing with the burning issue of whether a preparer must sign the client's copy of the return, a recent case involving again the question of what is alimony and the IRS's recent reprieve from the requirement that nonqualified deferred compensaton plans be in compliance with the (as of yet) not issued final regualtions by January 1, 2007.Documents for this podcast are available at http://edzollars.com/2006-10-06_ThisandThat. ... Listen | Listen in your iPhone | Download | View full cache | A Defining Issue-Who Is an Employee? The issue of whether a service provider is properly treated as a contractor or employee is an important issue for many small businesses.  In the case of Orion Contracting Trust v. Commissioner, TC Memo 2006-211, the Tax Court looked at this issue.  As well, the Court also took a look at the issue of what actions would indicate the proper "bad faith" to allow the imposition of a fraud penalty.The materials for the podcast can be downloaded from http://edzollars.com/2006-0 ... Listen | Listen in your iPhone | Download | View full cache | Not Quite Horseshoes-Close Doesn't Count for Charitable Appraisals The documentation rules for charitable contributions can create situations where taxpayers lose the right to claim a deduction even though they made it and, by the time they get to Tax Court, can even show the value of what was contributed.  This was a lesson learned by the taxpayers in Ney v. Commisssioner, TC Summary 2006-154.This podcast reviews the requirements for qualified appraisals and why just because an appraisal exists that won't necessarily save the taxpayers' deduction unl ... Listen | Listen in your iPhone | Download | View full cache | Limitations-the Statute of Limitations on Refund Claims We look at a case involving the statute of limitations and the issue of reliance on IRS advice.  In the case of A. L. Katz & J. L. Miller v. United States the United States Court of Claims explains that a taxpayer cannot use the fact that an IRS employee told them a claim could be filed by a date that turned out to be after the statute had expired to reopen the statute.  As well, the case provides an opportunity to look at the general rules that are involved with Section 6511 ... Listen | Listen in your iPhone | Download | View full cache | Securing A Client's Data Securing data has become a key issue for professionals, given recent high profile thefts of computers and drives containing sensitive client information.  This week we look at some of the basics of encrypting data that professionals need to understand to protect their clientâs information should a data containing device fall into a third partyâs hands.  The materials for this weekâs podcast can be downloaded at http://edzollars.com/2006-09-08_Securing_Data.pdfThe podcast is spo ... Listen | Listen in your iPhone | Download | View full cache | And You Get Your Own Car--Cars Provided to Employees This week we deal with the issues involved with having cars that are used by employees, and the various rules that employers need to deal with in that situation.  While arguably not as âexcitingâ? to tax practitioners as issues dealing with estate planning, entity selection and the like (we get excited by strange things), clients are often extremely interested in getting company autos to certain employees, far more interested than the dollars involved would suggest they should be. We ... Listen | Listen in your iPhone | Download | View full cache | But My Kids Are Worth What I Pay Them! How Not to Handle Children on the Payroll Paying your children to work in your business can make sense both for the business and from a family tax planning standpoint, but you have to take care to justify that the children are truly being paid for actual business work.  This was the little item that caused the taxpayer problems in the case of Alexander v. Commissioner, TC Summary 2006-127.  While the case may mainly demonstrate the truth of the old "pigs/hogs" tax saying, the opinion also helps illustrate issues ... Listen | Listen in your iPhone | Download | View full cache | Why Margined Stock is Not Equivalent to a Nonqualified Option... We look at a case this week that deals with the continuing problems of employee related options that were exercised when the stock was at a high price, but whose price collapsed before the tax was due.  The case involved was the case of Racine v. Commissioner, TC Memo 2006-162.The materials can be downloaded at http://edzollars.com/2006-08-19_Margins_and_Options.pdf .The podcast is sponsored by Leimberg Information Services at http://www.leimbergservices.com . Listen | Listen in your iPhone | Download | View full cache | Congress Plants a Landmine-Company Owned Life Insurance This week we look at a provision buried in the Pension Protection Act of 2006 that involves "employer" owned life insurnace.  The provision in question renders the death benefit taxable to the extent it is greater than the premiums paid unless the policy both falls into certain excepted categories and the policy owner takes specific steps before the policy is issued to assure that the insured both gets proper notice and gives a proper consent.The materials are found at http:/ ... Listen | Listen in your iPhone | Download | View full cache | It's a Matter of (Misplaced) Trust-Taxpayer Reliance on Advice Taxpayers get their advice from a lot of sources, and we often end up having to defend our own advice against other sources.  This week we have two cases that show that all advice is not created equal.  In the case of Lehrer v. Commissioner (TC Memo 2006-156) a taxpayer learned the hard way that selecting a preparer predominantly on which one computes the lowest tax is not necessarily the best way to end up well advised.And the case of Diem v. Commissioner (TC Summary 2006-121) is ... Listen | Listen in your iPhone | Download | View full cache | Gee, Whose IRA Was It? The Issues of Surviving Spouses and IRAs Is a distribution made to a surviving spouse that was rolled to her IRA but can be traced to her deceased spouse's IRA account eligible for the death benefit exception to Section 72(t)?  Considering a nearly $100,000 penalty was on the table, the taxpayer in the case of Gee v. Commissioner (127 TC No. 1) certainly hoped the Tax Court would answer yes.  Unfortunately for her, the Tax Court answered in the negative.  We look at the facts of her case, as well as the whole questi ... Listen | Listen in your iPhone | Download | View full cache | The Tax GAAP-FASB Speaks on Tax Provisions for Financial Reporting And now for something completely different-coverage of FASB.  Well, actually there is a tax angle to this one, as FASB has issued FASB Interpretation 48 in final form in June that will deal with uncertain tax positions.  The new interpretation will create some real problems for CPAs, especially those who both handle tax matters and have any sort of attest relationship with the client (including compilations, reviews and audits) that deals with GAAP statements.The materials can be ... Listen | Listen in your iPhone | Download | View full cache | Reasonable Cause for Late FilingâI Didn't Late File The logic of the application of the IRC to specific situations at times seems to defy common logic, and this week we look at a specific case of such.  In this case, the Tax Court decided that a reasonable cause for late filing that allowed a taxpayer to avoid the late filing penalty was that the court believed the taxpayer in reality had mailed the return on time, even if as a matter of law the return was late filed.  This is an extension of the issue discussed in the October 2005 ... Listen | Listen in your iPhone | Download | View full cache | That's Not Income, That's a DiscountâThe Ninth Circuit Corrects the Tax Court The issue of the taxation of prepaid purchase discounts that may need to be refunded if purchase goals are not met has resurfaced as the Ninth Circuit Court of Appeals reversed the Tax Court in the case of Westpac Pacific Foods v. Commissioner.  The Ninth Circuit's views on this topic differ both from those of the Tax Court and the IRS, each of which has it own views o this topic.In the podcast, the question to be addressed is what do we tell our clients who are faced with this issue?& ... Listen | Listen in your iPhone | Download | View full cache | What Did They Mean? Section 199 and Construction For our one year anniversary show, we take a look at the newly released regulations under Section 199 as they define construction found at Regulation Â1.199-3(m).  These definitions are key for anyone who works with clients in construction related entities.  The materials for this podcast can be downloaded at http://edzollars.com/2006-07-01_Construction.pdf .As I noted last week, I returned this week from visiting Syracuse, New York where  I presented a couple of continuing ... Listen | Listen in your iPhone | Download | View full cache | Is it Really My Loan? S Corporation Debt Once Again. A few weeks ago (back in April) we looked at the case of Ruckreigel where a taxpayer lost an IRS challenge on whether a debt was truly from the shareholders to the corporation due to a failure to follow the necessary formalities.  This week, the taxpayers strike back with a taxpayer victory in the case of Miller v. Commissioner (TC Memo 2006-125) where the IRS fails in its attempt to reclassify debt that followed the proper form but which the IRS attempted to claim was really debt from ... Listen | Listen in your iPhone | Download | View full cache | Reading, Writing and FICA-Taxation of FICA Payments on Tenure Buyout Another Circuit chimes in on the issue of the FICA taxation of payments made in exchange for tenure rights as part of an early retirement package offered to teachers.  In a combined appeal of two contradictory opinions of lower courts under their jurisdiction, the Sixth Circuit upheld the lower court's finding in favor of FICA taxation in Appolini and reversed the opposite lower court holding in Klender, both cases that involved early retirement payments to teachers subject to Michigan ... Listen | Listen in your iPhone | Download | View full cache | Extra, Extra - IRS Headliner on S Corporation Shareholders and 162(l) The IRS on May 15 issued a "Headliner" on their website directed at tax professionals that attempted to explain the treatment of policies purchased by a single employee shareholder of an S corporation in the shareholder's own name.In this podcast we look at the headliner, and consider whether Revenue Ruling 61-146 offers an option that solves the problem this ruling points out.The materials can be downloaded at http://edzollars.com/2006-06-10_Medical_S_Corporation.pdf.The podcast ... Listen | Listen in your iPhone | Download | View full cache | Special Podcast-About Those Extensions We Just Denied... A special podcast this week of interest to practitioners (and their clients) who bulk filed paper extensions with the Fresno Service Center.  The IRS recently admitted to a mistake in processing extensions received in Fresno.Materials for the podcast, including two IRS releases on this issue, can be downloaded from http://edzollars.com/2006-06-04_Fresno_4868.pdf.The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com. Listen | Listen in your iPhone | Download | View full cache | At Death Do the Payments Stop? Alimony and the Not Quite Clear Divorce Settlement. Divorce settlements at times are frustrating for tax preparers to work with, since they often leave dangling the issue of whether payments were or were not intended to be alimony and, not surprisingly, the former spouses may have very different views on that issue.  In this week's case, the Tax Court was forced to settle the issue after lecturing the warring spouses in his opinion about how the issue should have been taken care of well before this point.The case in question is the case ... Listen | Listen in your iPhone | Download | View full cache | Indecent Exposure-Internet Access Security Issues Away From the Office For Memorial Day, the podcast will take a break from tax related topics and consider rather some issues that arise when you, like many this weekend, are traveling and take your laptop with you to "stay connected" with your office and clients.  There are a number of risks that have been discussed in recent weeks on Steve Gibson and Leo Laporte's Security Now podcast that I wanted to discuss in the context of a tax professional.We look at how your system may be compromised and ... Listen | Listen in your iPhone | Download | View full cache | Tax Increase Prevention Act of 2005-The Highlights and Lowlights We finally have a 2005 extender bill, albiet missing a few extenders and with a few surprises (some good, some not so great).  The President signed the bill into law this week, so it's time to look at the details that were in the bill.The materials for this podcast can be found at http://edzollars.com/2006-05-20_TIPRA.pdf.The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com. Listen | Listen in your iPhone | Download | View full cache | It's "t" time: Exceptions to the 10% Addition to Tax on Premature Distributions from IRAs and Plans Taxpayers who take distributions from retirement plans prior to attaining age 59 1/2 have to deal with a confusing set of rules of which distributions are and are not eligible to escape the 10% addition to tax under Â72(t).  Two recent cases illustrate both the traps that exist for the unwary and how a taxpayer managed to convince the Tax Court he qualified for an exception from the penalty despite IRS arguments to the contrary.The materials for the podcast can be downloaded from http ... Listen | Listen in your iPhone | Download | View full cache | Testing the Limits: the $3,000 Capital Loss Cap and the AMT The Tax Court looked at the interaction of the $3,000 capital loss limitation and the alternative minimum tax basis adjustment on the sale of shares originally obtained via the exercise of incentive stock options in a prior year.  The case in question is Merlo v. Commissioner, 126 TC No. 10.In the case at hand, a taxpayer had exercised stock options at the end of $2,000 and obtained his stock at a price that was more than $1,000,000 less than the market price at the time.  Under t ... Listen | Listen in your iPhone | Download | View full cache | Whose Debt Is It Anyway? S Corporations and Loans from Related Entities Shareholder debt to S corporations has proven to be a minefield for shareholders and their advisers, and the taxpayer and their adviser in the case of Ruckriegel v. Commissioner managed to step on a shareholder debt/basis mine twice in two consecutive IRS exams.  In this case, the shareholders attempted to argue that loans from a partnership they controlled were actually loans to them from the partnership, followed by loans to the corporation.Or, to put it more correctly, their CPA att ... Listen | Listen in your iPhone | Download | View full cache | But I Never Got That Letter: When Mail Doesn't Make It To Taxpayers Much of the information that taxpayers need to deal with their tax obligation arrives via the U.S. mail.  But what happens when that mail is delivered to the wrong address and either never makes it to the taxpayer or arrives late?  While we've previously considered what happens when the taxpayer attempts to send documents to the IRS that the IRS claims never arrived, this week we look at a case and a letter ruling involving mail that was sent to an address the taxpayer did not cur ... Listen | Listen in your iPhone | Download | View full cache | We Didn't See This Adoption Coming-What is Unforseen? Can adopting a child, an apparently voluntary endeavor, qualify as an unforseen circumstance for purposes of obtaining an early exclusion of gain from the sale of a home under Section 121?  A taxpayer asked that question of the IRS and got a favorable response which we consider this week.  The letter ruling, which applies only to this taxpayer, is useful in helping us determine where the IRS may see the boundaries of an "unforseen" circumstance that qualifies a taxpayer ... Listen | Listen in your iPhone | Download | View full cache | How Much to Tell--Adequate Disclosure and Section 6501(e) The case of Benson v. Commissioner, TC Memorandum 2006-55, provides a look at the issue of what constitutes adequate disclosure under Section 6501(e)(1)(A)(ii) for purposes of avoiding the otherwise mechanical application of an extended six year statute on substantial underpayments.  In this case, which the taxpayer ends up losing, the Court considers to what extent disclosures on other returns can "make up" for items not disclosed directly on the individual return.The text f ... Listen | Listen in your iPhone | Download | View full cache | Unreasonably Not Injured We look at the exclusion for personal injuries under Section 104 this week, as well as the nature of a reasonable cause for purposes of escaping the imposition of a penalty.  We use the case of Goode v. Commissioner, TC Memo 2006-48, to illustrate these issues.  As well, we look at another attempt at getting reasonable cause to take a position--ask the President (as in George W. Bush), or at least have someone else do it and then claim to rely on the answer received when the quest ... Listen | Listen in your iPhone | Download | View full cache | I'm a Yankee Doodle Dandy-Just Not a Good Recordkeeper... This week we look at the issues and limitations involving the Cohan rule and its use in tax compliance and representation work. The materials can be downloaded from http://edzollars.com/2006-03-25_Cohan.pdf. The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com. Listen | Listen in your iPhone | Download | View full cache | In God We Trust, All Others Must Deposit With Us-Payroll Tax Trust Funds This week we look at some issues revolving around payroll tax deposits, including the IRS and Social Security Administration recent caution about the use of payroll services to deposit taxes. This week we look at a case that invovled the embezzlement of payroll tax deposits by a payroll service, where the IRS successfully argued that the employer still was liable for the unpaid taxes even though they had believed the payroll service had deposited the taxes As well, we look at a case in ... Listen | Listen in your iPhone | Download | View full cache | Don't Get Personal (Service Corporation, That Is...) In honor of the upcoming March 15 filing deadline for calendar year corporations, this week we look at the issue of just what is a "qualified personal service corporation" and, perhaps more importantly, what is not. The podcast looks at the recent case of Ron Lykins, Inc. v. Commissioner, TC Memorandum 2006-35, where a corporation was held not to be a QPSC, and so could benefit from the lower tax brackets available to non-PSCs. Materials for the podcast can be downloaded from http://www ... Listen | Listen in your iPhone | Download | View full cache | The Trouble With Disclaimers-Circular 230 Revisited This week's podcast arose from a discussion that began on the California Society of CPAs TaxTalk group on Yahoo about the widespread use of Circular 230 disclaimers. There seems to be an unfortunately false belief among many in the professions involved that a standard disclaimer eliminates any and all issues related to the revisions last summer to Circular 230. The podcast discusses both the issues outside of Circular 230 that can arise from the indiscriminate use of this disclaimer, as ... Listen | Listen in your iPhone | Download | View full cache | Doctor My Eyes Have Seen the DeductionâMedical Expenses and the Spouse <