BISKCPEasy Weekly Tax Update
With E. Lynn Nichols, CPA
January 19, 2015
CITATIONS
1. Maximum Value of Employer-Provided Vehicles for 2015
IRS has announced the maximum value of employer-provided vehicles first made
available to employees for personal use in 2015 for which the vehicle cents-permile valuation rule or the fleet-average valuation rule may be applicable.
(Notice 2015-1; 2015-2 IRB 249; 1/12/2015)
2. Extension Granted to File 362(e)(2)(C) Stock Basis Election in 351
Transaction
The IRS granted a foreign company treated as a corporation an extension of time
under section 362(e)(2)(C) to reduce basis in stock received in exchange for
transferred assets in section 351 transaction where basis of assets transferred
was less than their FMV.
(PLR 201502001; 1/9/2015)
3. Extension Granted to File QSLOB Election
IRS granted a company an extension to file an election to be treated as operating
qualified separate lines of business under section 414(r).
(PLR 201502020; 1/9/2015)
4. Publication on Small Business Retirement Plans
IRS has released Publication 560 (rev. 2014), Retirement Plans for Small
Business (SEP, SIMPLE, and Qualified Plans), for use in preparing 2014 returns,
discussing retirement plans that can be established and maintained for small
business employers and their employees.
(1/7/2015)
Publication on Pension and Annuity Income
IRS has released Publication 575 (rev. 2014), Pension and Annuity Income, for
use in preparing 2014 returns, providing information on the taxation of periodic
and nonperiodic payments, disability payments, railroad retirement benefits,
rollovers, survivors' and beneficiaries' reporting responsibilities, and special
additional taxes.
(1/7/2015)
Publication for Divorced or Separated Individuals
IRS has released Publication 504 (rev. 2014), Divorced or Separated Individuals,
for use in preparing 2014 returns, explaining the tax rules that apply if an
individual is divorced or separated from his or her spouse.
(Publication 504; 12/30/2014) [summary only] Doc 2015-663; 2015 TNT 8-35
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Publication on Unrelated Business Income of Exempt Organizations
The IRS has released Publication 598 (rev. Jan. 2015), Tax on Unrelated
Business Income of Exempt Organizations, explaining which organizations are
subject to the tax on unrelated business income, requirements for filing a return,
what an unrelated trade or business is, and how to figure UBTI
(1/7/2015)
Publication on Tax Rules for Children, Dependents
The IRS has released Publication 929 (rev. 2014), Tax Rules for Children and
Dependents, for use in preparing 2014 returns, explaining filing requirements and
other tax information for individuals claimed as dependents on another person's
tax return, and how to figure and report unearned income of some children.
(1/8/2015)
Publication on Mortgage Interest Deduction
The IRS has released Publication 936 (rev. 2014), Home Mortgage Interest
Deduction, for use in preparing 2014 returns, explaining the rules for deducting
home mortgage interest, including general information on home mortgage
interest, how to report deductible interest on a tax return, and how the deduction
on home mortgage interest may be limited.
(1/8/2015)
5. Treasury Guidance Used to Determine Company's Open-Loop Biomass
Reimbursement
The Court of Federal Claims, basing its decision on an IRS notice and related
Treasury guidance, held that a company that constructed an open-loop biomass
facility to provide steam to a Perdue chicken factory is only entitled to
reimbursement for costs associated with the portion of the facility necessary to
produce electricity.
(W.E. Partners II LLC; Ct Fd Clms; No. 13-54; 1/12/2015)
6. Individual Entitled to Deduction For Home Mortgage Interest as Equitable
Owner
The Tax Court set aside an IRS notice of deficiency disallowing an individual's
claimed home mortgage interest deduction, finding that the individual
demonstrated clear and convincing evidence that he was an equitable owner of
the property under state law during the tax year he claimed the deduction.
(Qui Van Phan; T.C. Summ. Op. 2015-1)
7. Alimony Deduction Limited by Delinquent Payments for Child Support
The Tax Court upheld an IRS determination limiting an individual's deduction for
alimony paid, finding that section 71(c)(3) limited the deduction the individual was
entitled to receive because he failed to make the full amount of alimony and child
support payments required by a divorce decree.
(Joseph Larry Becker; T.C. Summ. Op. 2015-2; 1/13/2015)
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8. Plan Distribution for Unforeseeable Emergency Requires Receipts
IRS addressed the rules that apply to distributions from section 457(b) eligible
plans for unforeseeable emergencies, explaining that plan administrators request
receipts to verify that the emergency imposes a severe financial hardship and to
ensure that the distribution is limited to an amount that is reasonably needed.
(INFO 2014-0041; 12/26/2014)
Plan Administrator May Judge What Is an Unforseeable Emergency
IRS outlined the rules applicable to distributions from a section 457(b) retirement
plan for unforeseeable emergencies, explaining that it is up to the plan
administrator to determine if the need to rewire a home and buy a new air
conditioning unit constitutes an extraordinary and unforeseeable circumstance.
(INFO 2014-0045; 12/26/2014)
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