Welcome to the Federal Tax Update Podcast, hosted by Lynn Nichols. This is presented as a member benefit by the South Carolina Association of CPAs. It is produced to provide current information about developments in U.S. tax law, such as cases, ruling, IRS pronouncements and expert comments on hot topics.

The commentary is brief, and you should not take a position on the items discussed until you thoroughly examine it with authoritative sources. All topics can be found discussed in further length at Tax Notes Today.

“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,’ the preeminent source of accurate information and analysis of important developments and trends in Federal taxation,” Nichols says.

You can contact Lynn Nichols at lynnnicholscpa@outlook.com or 714.321.3387 and connect on LinkedIn.

  1. NOL Carrybacks: Back From the Dead, Allowed by CARES ACT

Harold N. “Hap” May examines the tax planning opportunities created by the net operating loss carryback provisions of the Coronavirus Aid, Relief and Economic Security Act, and he offers strategies for maximizing 2020 NOLs. [Tax Notes Today; 9/14/2020, Article by Harold N. May]

Nichols note: Many businesses have losses in 2020, and the NOL Carryback rules have been modified (again!) to allow a five-year carryback. Don’t forget the “Quick Refund” procedures available to recover any amount paid on estimates by filing immediately after year end to recover any amount paid on estimate for 2020, and not required due to loss for the year. 

  1. Per Diem Rates for Employees in Transportation Industries
  2. IRS Webpage to Help Marijuana Businesses Comply with Tax Law
  3. Consider Interplay Between IRC Secs 108 and 163(j)
  4. Are Non-Recourse “Loans” to Fund Litigation Income to Lawyer?
  5. Final Regulations Define “Qualifying Relative” 2018-2025
  6. Federal Tax Liens Survive Bankruptcy … Attach to Property
  7. Not-For-Profit Corporation Cannot Make S Election Allowing One Director to Claim Almost $275,000 Losses as a “Shareholder”

A federal tax specialist for 50 years, Lynn Nichols provides tax consulting services to CPA firms on complex federal income tax issues, professional standards in tax practice and effective tax practice management. Check out his Tax Updates video playlist.

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