Tax News & Views Year End Planning & Broke Billionaire Roundup

November 23, 2020

The 2020 Taxpayers End-of-Year Checklist – Tom Herman, WSJ($). “At this time of year, it’s remarkably easy for investors to overlook a tax issue involving capital-gains distributions by mutual funds, especially stock funds.”

“If you’re planning to make a major new mutual-fund investment for a taxable account over the next few weeks, first find the answers to a few questions: Is the fund planning a large capital-gains distribution this year? If so, how much, and what will be the date to qualify for the payout? For most major fund groups, you should be able to find this information on their websites.”

6 Tax Planning Moves To Make Now - David Rae, Forbes. “yearend is a great time to do some tax planning to help reduce your 2020 income taxes that will be due this coming April.”

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A few tax penalties nudged up in 2021 by inflation – Kay Bell, Don’t Mess With Taxes. “The Internal Revenue Service has its own version of referees who penalize taxpayers and tax professionals for violating rules. They don't literally throw flags for tax law violations, but their metaphorical whistles for violations are costly.”


Why The Wealthy Are Pleased With The Election Results – Megan Gorman, Forbes. “Wealthy individuals and families are breathing a sigh of relief in light of the election results. Their worst tax fears are not to be realized in the near term as the combination of a Democratic president and a likely Republican Senate means that significant tax legislation is off the table.”

New York expands Trump tax fraud investigations to include write-offs: report – the Hill, Celine Castronuovo. “Two separate New York state investigations into allegations of fraud by President Trump and his businesses are now reportedly looking into tax write-offs on millions of dollars in consulting fees, some of which appear to have gone to the president’s daughter and senior adviser Ivanka Trump, according to people familiar with the matter who spoke to The New York Times.”


Centralized partnership audit regime changes proposed – Sally P. Schreiber, J.D., Journal of Accountancy. “Partnerships received guidance from the IRS on Friday on when the new centralized partnership audit regime does not apply to certain partnership-related items.”

“The proposed regulations (REG-123652-18) provide that the centralized audit regime may not apply when an adjustment during the examination of a person other than the partnership requires a change to a partnership-related item. The regulations also say that a partnership with a qualified Subchapter S subsidiary (QSub) partner cannot elect out of the centralized partnership audit regime.”

IRS Narrows Scope of Partnerships That Can Avoid Audit Regime – Eric Yauch, Tax Notes($). “The IRS issued a proposal tightening which partnerships can opt out of the centralized audit regime and made other changes that address special enforcement matters.”


Filing Season On Time, Rettig Tells CongressWilliam Hoffman, Tax Notes. “The IRS started programming for the 2021 filing season more than a month earlier than planned and expects to start receiving tax returns in late January or early February.”


Exclusive: The Billionaire Who Wanted To Die Broke . . . Is Now Officially Broke – Steven Bertoni, Forbes. “Over the last four decades, Feeney has donated more than $8 billion to charities, universities and foundations worldwide through his foundation, the Atlantic Philanthropies.” 

“Charles “Chuck” Feeney, 89, who cofounded airport retailer Duty Free Shoppers with Robert Miller in 1960, amassed billions while living a life of monklike frugality. As a philanthropist, he pioneered the idea of Giving While Living—spending most of your fortune on big, hands-on charity bets instead of funding a foundation upon death.”

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