We are constantly dissecting the comprehensive and complex Tax Cuts and Jobs Act of 2017 (TCJA). One particular change to the tax code involves changes to section 1031 – commonly referred to as Like-Kind Exchanges. The new code reads: “No gain or loss shall be recognized on the exchange of real property  held for productive...

On December 20, 2019, President Trump signed the end-of-year spending and tax extension package into law. This package includes: A five-year extension of the $1 per gallon biodiesel blenders tax credit. An extension of the Work Opportunity Tax Credit (WOTC) through the end of 2020. The WOTC is a federal tax credit available to employers that hire and...

The IRS is conducting compliance checks into whether the credit union taxpayers are adhering precisely to information reporting requirements regarding unrelated business income. Very specifically, they are looking at income from the sale of insurance products, financial service products and ATM transaction fees.  Compliance checks are reviews to determine whether a taxpayer is strictly adhering...

The Tax Court recently issued a long-awaited ruling in the GROWMARK section 199 case.   As in the AGP case (issued in October), the Tax Court ruled that section 199(d)(3) does not require separate domestic production activities deduction (DPAD) computations for patronage and nonpatronage activities. However, once DPAD is computed it must be allocated between patronage...

Final regulations implementing new Code section 163(j) could be released by the end of the year.  The Treasury and IRS are working on additional section 163(j) regulations, but they may not be released at the same time.  Regulations are usually effective for tax years ending after the date the final regulations are published.  With the...

Under some circumstances in which the tax years overlap the calendar year, there seems to be some confusion about which “Tax Period” to use. When making a corporate tax payment to the IRS using their Electronic Funds Transfer Payment System, either by phone or on the IRS’ website,   the correct year is always the tax...