Nichols’ Tax Update, Issue 21-49

  1. IRS Advises on Calculating Imputed Underpayments of Partnerships
    • In emailed advice, the IRS advised on whether adjustments to partnership-related items are included in the calculation of the partnership’s imputed underpayment.  [ECC 202148006, 12/3/2021]
  1. Guidance Implements Termination of Employee Retention Credit
    • The IRS has issued guidance (Notice 2021-65) to reflect that employers, other than recovery start-up businesses, are no longer entitled to the employee retention credit for wages paid on or after October 1. [Notice 2021-65, 12/6/2021]
  1. Partnership Challenges Net Earnings Adjustments in Tax Court
    • A partnership petitioned the Tax Court challenging a notice of final partnership administrative adjustment, arguing that the IRS erred by adjusting its net earnings from self-employment for the 2015 and 2016 tax years and by determining that the partnership’s individual partners are not limited partners. [Sirius Solutions LLLP et al. v. Commissioner; No. 30118-21, (9/20/2021) 12/7/2021]
  1. Treasury Issues Proposed Regs on Beneficial Ownership
    • Treasury’s Financial Crimes Enforcement Network December 8 announced proposed regulations implementing the Corporate Transparency Act, which would require certain business entities to report beneficial ownership information. 188 pages ! ! ! ! ! ! ! [FR Doc. 2021-26548 Filed: 12/7/2021 11:15 am; Publication Date: 12/8/2021]
  1. Civil Fraud Penalty on the Line in Tax Court Easement Petitions
    • The IRS has asserted a 75 percent civil fraud penalty in nine new Tax Court petitions challenging nearly $365 million in denied conservation easement deductions. [Tax Notes Today, 12/8/2021, article by Kristen Parillo]

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 I have relied on Tax Analysts® to provide reliable and timely analysis of Federal tax developments for over 30 years. The “headnotes” you see here are from “Tax Notes Today” In my opinion, the preeminent source of accurate information and thoughtful analysis of important developments and trends in Federal taxation.

(*** identifies item with useful analysis of current issue but not covered in Lynn’s recorded commentary due to complexity and time required for fair comment.)