Federal Tax Update for the Week of February 8, 2010

1. President's Revenue Proposals for Fiscal Year 2011 Budget Explained
(General Explanation Of The Administration's Fiscal Year 2011 Revenue Proposals (Green Book), 2/1/10)

2. Chief Counsel Outlines State of Law for Undocumented Worker That Obtains it in But Who Has a W-2 With Someone Else's Social Security Number
(CCA 201005001, 2/5/10)

3. Grants Made by State to Purchasers of Certain Property Must be Treated as Includible in Income by Recipients
(PLR 201004005, 1/29/10)

4. Taxpayer Allowed to Exclude Value of Clothing and Accessories Provided to Employee as De Minimus Fringe - But the Facts of the Case Matter
(PLR 201005014, 2/5/10)

5. Taxpayer Not in Either of Two Claimed Trades or Businesses, Failed to Show Worthlessness of Debt and Subject to Substantial Understatement Penalty
(Vianello v. Commissioner, TC Memo 2010-17, 2/1/10)

6. Taxpayer Allowed Medical Deduction for Expenses Related to Sex Reassignment Surgery
(O'Donnabhain v. Commissioner, 134 TC No. 4, 2/2/10)

7. Modifications to Welfare Plan Held to be Constructive Amendment to Pension Plan That Violated Anti-Cutback Rule
(Battoni v. Ibew Local Union No. 102, CA3 No. 08-3743, 2/5/10)

8. Interest Income on Amounts Required to be Held in Restricted Account by Terms of Loan Cannot be Treated as Passive Income
(PLR 201005016, 2/5/10)

9. Transfer to Partnership Found to be Bona Fide Sale for Full and Adequate Consideration, Partnership Assets Not Required to be Included in Decedent's Estate
(Shurtz v. Commissioner, TC Memo 2010-21, 2/3/10

10. Estate Not Allowed a Charitable Deduction for Amount Paid to Charity in Settlement of Dispute Over Residual of Estate
(TAM 201004022, 1/29/10)

11. Interests for Purposes of Qualified Family Owned Business Deduction Limited to Equity Interests Only
(Estate of Mary Roppolo Artall v. Commissioner, CA5, No. 09-60092, 1/29/10)

12. IRS Clarifies That New Section 2511(C) Serves Solely to Expand, Not Limit, Application of Gift Tax in 2010
(Notice 2010-19, 2/2/10)

13. Pledging IRA Owner's Non-IRA Assets Held by Broker to Secure Debts of the IRA Accout a Prohibited Transaction
(Department of Labor Advisory Opinion 2009-03, 10/27/09)

14. IRS Adds Requirement to List Name and Identifying Number of Responsible Party When Applying for EIN
(Form SS-4, 2/2/10)

15. Mortgages May Have Priority Over IRS Lien Despite No Transfer of Cash at Date Security Interest Granted
(Equity Investment Partners, Lp V. Lenz, United States, Ca11 No. 09-11887, 2/1/10)

16. IRS Supervisor Abused Discretion in Rejecting OIC Original Settlement Officer had Recommended Accepting
(Fairlamb v. Commissioner, TC Memo 2010-22, 2/4/10)

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