Entries by TAX

Tricky Rules For Amending Tax Returns

By John G. Hodnette Amending returns can cause clients and practitioners needless anxiety if they do not fully understand the applicable rules.  This short article describes those rules regardless of whether the amended return provides an addition to tax or requests a refund. The first concern is the statute of limitations.  Section 6501(a) generally provides […]

Federal Income Tax Update No. 2

By Keith A. Wood This is the second of two installments of this article.  Read the first installment here. I. Charitable Deduction Fails Where Tax Basis Not Shown on Form 8283. Belair Woods, LLC v. Comm., TC Memo 2018-159, involved a taxpayer who tried to claim a conservation easement deduction under Section 170.  Originally, Belair […]

Section 199A Pass-Through Deduction and the Magic Number

By John G. Hodnette The 2017 Tax Act includes a new deduction for qualifying pass-through entities codified as Section 199A.  Taxpayers other than corporations operating a business are generally allowed the deduction, subject to complex limitations, which require thoughtful planning to ensure taxpayers fully benefit.  Certain classes of businesses deemed a “specified service trade or […]

Federal Income Tax Update No. 1

By Keith A. Wood This is the first of two installments of this article.  Find the second installment here. I. Audit Statistics: What Are Your Chances of Being Audited? The 2017 Internal Revenue Service Data Book (Publication 558) contains audit statistics for the fiscal year ended September 30, 2017.  Below are the audit statistics for […]