William Byrnes' Tax, Wealth, and Risk Intelligence

William Byrnes (Texas A&M) tax & compliance articles

TaxFacts Intelligence Weekly of Aug 29, 2019 – Actionable Analysis for Financial Advisors

Posted by William Byrnes on August 30, 2019

2019’s Tax Facts Offers a Complete Web, App-Based, and Print Experience

Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone.  Questions? Contact customer service: TaxFactsHelp@alm.com800-543-0874

Tuition Waiver for International Tax Online Courses (more information here)

Texas A&M University School of Law will launch August 26, 2019 its International Tax online curriculum for graduate degree candidates. Admissions is open for the inaugural cohort of degree candidates to pilot the launch of the Fall semester introductory courses of international taxation and tax treaties, and provide weekly feedback on content, support, and general experience in exchange for waiving the tuition and providing the books free.  Texas A&M University is a public university of the state of Texas and is ranked 1st among public universities for its superior education at an affordable cost (Fiske, 2018) and ranked 1st of Texas public universities for best value (Money, 2018). 

IRS Reverses Stance on Lenient Enforcement of ACA Employer Mandate

In a recent reversal of practice, in the early weeks of August the IRS began issuing Notice 972CG to employers informing them that they owe substantial penalties for failing to strictly comply with the ACA employer mandate. Generally, the Notice is sent to inform employers who have made late or incorrect filings of Forms 1094-C and 1095-C that penalties now apply (the current notices generally apply for mistakes made in 2017). The penalty that applied in 2017 was $260 per return ($50 per return if the filing was made within 30 days of the original due date). Employers must respond to the Notice 972CG within 45 days (from the date listed on the notice) or the IRS will bill the employer for the penalty amount listed. If the employer disagrees in whole or part with the proposed penalty, box B or box C of the notice should be checked and the employer must submit a signed statement detailing the disagreement, including supporting documentation if applicable. Generally, the employer will be required to explain that the late or incorrect filing was due to reasonable cause. For more information on responding to this notice and other correspondence that the employer may receive with respect to the employer mandate, visit Tax Facts Online. Read More

The Latest Tax Scam: Beware Fake IRS Letters

Nearly every taxpayer has heard warnings about phone-based IRS scams, assuming they have not experienced the calls themselves. However, because the general advice to avoid falling prey to these scams is often accompanied by the advice “the IRS will only contact you via U.S. mail” to initiate a dispute, scammers have now begun sending fake IRS letters–at the exact point in the year when legitimate IRS mail correspondence is at its highest. To avoid falling prey to letter-based scams, keep in mind that IRS letters arrive in government envelopes and provide a notice or letter number in the top right corner, along with a truncated version of your tax ID number. The tax year in question will also appear in the top right corner. A contact telephone number–usually a “1-800” number will appear. If the letter contains what appears to be a personal phone number, you can verify by visiting irs.gov, where legitimate contact information will be posted. Also keep in mind that the IRS will not send threats, such as threats of arrest or deportation. For more information on federal income tax filing requirements, visit Tax Facts Online.Read More

Own an S Corporation? Here’s How to Fix a Violation of the S Corp Requirements

For many clients, making the election to be taxed as an S corporation can have substantial benefits–but also carries the burden of risking disqualification if the business fails to meet the requirements governing S corporations. Selling shares to an impermissible shareholder (such as a partnership), violating the “one class of stock” rule can result in automatic revocation of the S status. To prevent this, the business must show the IRS that the violation was inadvertent, which can be accomplished by submitting a ruling request explaining how the violation occurred. Generally, the S corporation should seek to demonstrate to the IRS that it took remedial action as soon as it learned of the violation, explain the circumstances involved and how the S corporation discovered the violation, in which case the IRS may grant retroactive relief–so that it is treated as though no violation occurred at all. For more information on the specific requirements that an S corporation must satisfy, visit Tax Facts Online. Read More

Tax Facts Team
Molly Miller
William H. Byrnes, J.D., LL.M
Tax Facts Author
Jason Gilbert, J.D.
Senior Editor
Robert Bloink, J.D., LL.M.
Tax Facts Author
Connie L. Jump
Senior Manager, Editorial Operations
Alexis Long, J.D.
Senior Contributor
Patti O’Leary
Senior Editorial Assistant
Danielle Birdsail
Digital Marketing Manager
Emily Brunner
Editorial Assistant

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