A quarterly magazine from the National Association of Enrolled Agents
Winter 2024 vol.42 no.4
ICYMI
ICYMI

ICYMI

A roundup of recent discussions from the NAEA WebBoard. QUESTION #1: I have a client who rents out land for a solar farm. I read that a land rental cannot qualify for the qualified business income (QBI) deduction but am trying to find a ... Tynisa Gaines, EA, and Patrick D. Dimmitt, EA

Winter 2024, ICYMI, s corporation, rental, QBI, partnership, depreciation, Schedule C, Schedule K-1, §6221(b), LLC, Form 1065, §121, Form 1120-S, Rev. Proc. 2013-30, §357(c), §351, Form 8832, Reg. §1.469-2T(f)(3), §167, qualified business income, §1016, Rev. Proc. 2019-38, Reg. §1.199A-1(b)(14), solar, Treas. Reg. §301.6221(b)-1, §4.02(6), §5.02, Reg. §1.351-3, §121(d)(10), §1.1250-3(a)(3), Reg. §1.1245-2(a)(4) a, §1250(b)(3), §121(d)(6), Rev. Proc. 2002-69, Schedule SE, Schedule F, §761(f)(2)(B), Badaracco v. Commissioner, §4.03, §721, qualified joint venture, §25D(e)(8), Form 13844, direct debit installment agreement, DDIA, QJV
Decoding IRS Transcripts: Navigating the Maze for Better Tax Resolution and Audit Preparedness
Feature Article

Decoding IRS Transcripts: Navigating the Maze for Better Tax Resolution and Audit Preparedness

Aspect-Based Sentiment Analysis: Insights from r/IRS Subreddit I analyzed tax community sentiments regarding Internal Revenue Service (IRS) transcripts from 927 “hot” posts from the r/IRS (Internal Revenue Service News, and Taxpayer Disputes) subreddit, which is one of the largest online forums comprising tax professionals with more than 79,000 members. This subreddit serves as a hub for discussions, queries, and experiences... Dr. Desai, EA

Winter 2024, Feature Article, IRS, return, resolution, audit, Schedule K-1, Form 8821, Form 2848, Form 1099-B, transcript, subreddit, r/IRS, account, substitute for return, SFR, Form 1099-INT, Form 1099-DIV, Practitioner’s Priority Services, TXMODA, transcript delivery system, TDS, PRAW, OpenAI, GPT-4, natural language processing, NLP, Generative Pre-Trained Transformer 4, Python Reddit API Wrapper
Success or Failure at the IRS: What Will Make the Difference?
Capitol Corner

Success or Failure at the IRS: What Will Make the Difference?

For the first time, Congress has provided substantial long-term funding for the IRS. The unprecedented rebuilding program, which includes $80 billion of IRS funding over 10 years under the Inflation Reduction Act (IRA, P.L. 117-... Charles O. Rossotti

Mar/Apr 2023, Capitol Corner, Internal Revenue Service, IRS, compliance, IRA, Schedule K-1, Form 1099, Inflation Reduction Act, Return Review Program, Treasury Inspector General for Tax Administration, TIGTA
Should Congress Permanently Extend the Filing Deadline?
Feature Article

Should Congress Permanently Extend the Filing Deadline?

PRO Cryptocurrency Did Not Exist in 1955. It Is Time to Update National Tax Day. National Tax Day (April 15) has not been modified since 1955. In 1955, the federal tax code was 929 pages....

July/Aug 2022, Feature Article, S Corporations, cryptocurrency, Schedule K-1, Form 1099-B, Notice 2009-11, Emergency Economic Stabilization Act, §6072, §1.6081-4, Tax Deadline Simplification Act, H.R. 4214, Revenue Act of 1954, National Tax Day
IRS Clarifies Timing of Paycheck Protection Program Loan Forgiveness Basis Increase
Preparation

IRS Clarifies Timing of Paycheck Protection Program Loan Forgiveness Basis Increase

The Internal Revenue Service (IRS) released three new revenue procedures last month clarifying Paycheck Protection Program (PPP) loan and other federal COVID-19 grant tax-exempt income recognition, expense deductions paid with COV... Jane Ryder, EA, CPA

Jan/Feb 2022, Preparation, s corporation, partnership, COVID-19, PPP, Paycheck Protection Program, SBA loans, Schedule K-1, Form 1065, net operating loss, NOL, COVIDTRA, COVID-related Tax Relief Act of 2020, tax-exempt income, loans, Rev. Proc. 2021-49, Emergency Economic Injury Disaster Loan, EIDL, SBA 7(a) loans, Rev. Proc. 2021-50, SBA Community Advantage loans, SBA microloan, Restaurant Revitalization grants, subsidiary member, Bipartisan Budget Act of 2015, carryback, pass-through
Limited Partners and Self-Employment Tax
Feature Article

Limited Partners and Self-Employment Tax

As tax professionals, we are often given Schedule K-1 forms by our clients in order to report their income and/or losses from their investments in pass-through organizations. How involved are we, ... Keith A. Espinoza, EA

Nov/Dec 2021, Feature Article, s corporation, Tax Court, Internal Revenue Code, self-employment, FICA, Form W-2, Social Security, Form 1040, Schedule K-1, Schedule 1, LLC, limited partnerships, limited liability partnerships, limited liability companies, limited liability limited partnerships, LLP, LP, LLLP, §1402(b), Self-Employment Contributions Act of 1954, SECA, Federal Insurance Contributions Act of 1935, §1402(a)(13), §1402(a)(1)-(17), Revised Uniform Limited Partnership Act of 1976, SE, employee stock ownership plan, ESOP, Renkemeyer, Form 8275, Form 8082
Avoid Penalties by Doing Your Due Diligence
Tax News Briefs

Avoid Penalties by Doing Your Due Diligence

New Due Diligence Requirements For tax year 2020, the Consolidated Appropriations Act, 2021, allows eligible taxpayers to elect to use their 2019 earned income to figure the 2020 earned income credit (EIC) or additional child tax cred... TheTaxBook

May/June 2021, Tax News Briefs, penalties, partnership, Schedule K-1, earned income tax credit, due diligence, EIC, additional child tax credit, ACTC, earned income, capital account, Form 1065, §6698, §6721, §6722, generally accepted accounting principles, GAAP, §6662, §704(b)
IRS Updates Small Business Accounting Method Regulations
Tax News Briefs

IRS Updates Small Business Accounting Method Regulations

The Internal Revenue Service (IRS) has issued final regulations to implement the changes to the accounting method rules made by the Tax Cuts and Jobs Act (TCJA). Under Internal Revenue Code (IRC) §448(c), a business with gross receipts under $25 m... TheTaxBook

Mar/Apr 2021, Tax News Briefs, TCJA, s corporation, c corporation, partnership, UNICAP, NIMS, Schedule K-1, IRS Notice 2020-75, IRC §471(c), IRC §471(a), IRC §263A, IRC §448, IRC §460, IRC §471
Correcting Partnership Returns After the Centralized Partnership Audit Regime
Feature Article

Correcting Partnership Returns After the Centralized Partnership Audit Regime

Practitioners who make or find errors on a filed Form 1065 for their partnership clients may find themselves in for a bit of a shock when it comes to correcting those errors. Congress passed the Bipartisan Budget Act (BBA) of ... David Woods, EA

Mar/Apr 2021, Feature Article, s corporation, c corporation, nonprofit, trust, estate, partnership, audit, amended, IRA, Schedule K-1, 401(k), TIN, Bipartisan Budget Act, BBA, TEFRA, Tax Equity and Fiscal Responsibility Act, CPAR, §6221(b), §6221(a), LLC, foreign entity, disregarded entity, Reg. §301.6221(b)-1(c), Form 1065X, Form 8988, Form 8978