Per an internal IRS memorandum prepared within the IRS SB/SE division (link to memo), the IRS has determined that it will not allow a § 199A deduction when it prepares a substitute for return (“SFR”). [mfn] SBSE-04-1219-0054 Guidance for the qualified business income deduction on a substitute for return (12/9/2019) available at https://www.irs.gov/pub/foia/ig/sbse/sbse-04-1219-0054.pdf.[/mfn] Under §…
In a recent case,[1] the Federal District Court for the District of Maryland held that the U.S.’s federal IRS tax lien did not attach to a piece real property after the transfer to the taxpayer was voided under the Maryland Uniform Fraudulent Conveyance Act (“MUFCA”).[2] Facts Transfer from Insolvent Estate Plaintiff, BG, is a nursing…
On November 20, 2018, the IRS issued a memo on “Updated Voluntary Disclosure Practice” (the “Memo”). The Memo sets forth guidance for both domestic and offshore related voluntary disclosures after the recent closure of the Offshore Voluntary Disclosure Program (“OVDP”). The Memo is available here. Why is this guidance important? OVDP was the specifically designed…
Joe and Mary operate a closely held business that generates a net operating loss in 2005 and 2007. The net operating loss from 2005 and 2007 are carried forward and are used to offset business income on Joe and Mary’s 2015 tax return. Joe and Mary’s 2015 tax return is selected by the IRS for…
