Tax News Presidential Roundup - February 3

February 3, 2020

Electronic filing mandated for Sec. 501(c)(3) applications – Dave Strausfeld, J.D., The Tax Adviser

“Taxpayers will no longer be able to file Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, on paper, but must complete and submit the form through”

Where the 2020 Presidential Candidates Stand on Tax Policy – Tax Policy Center

Stay up to date on each Presidential candidate’s tax policy stances with this interactive tool that allows users to browse by issue, tax type, and candidate.

Super Bowl rooting reasons and tax residency implications – Kay Bell, Don’t Mess With Taxes

“Relocating for taxes isn't simple: Many professional athletes make no-tax states their homes so they can avoid as much state tax as possible.”

But not so fast…

“The key to taking advantage of another state's lower taxes is to truly establish state residency. If you're just doing so halfheartedly and for obvious tax reasons, you can be sure that state tax officials will contact you.”

States are hungry for revenue and may make sure you prove your new residency claim is legitimate before letting you go for good!

O-Zone Benefits for Local Residents Still Lacking Under Final Regs – Marie Sapirie, TaxNotes ($)

“The impact of the investments being made in response to tax incentives created by the Opportunity Zone regime is still uncertain, but the final regulations add some limited guardrails, even as they give investors more flexibility. However, the final regulations can’t change the fundamental issues for local communities created by the statutory regime.”

But Treasury and IRS can only go so far and must focus on implementing the statute.

“No new rules regarding public reporting or transparency appeared in the final regulations. Treasury has made clear that it’s done all it can and that further changes must be added by Congress.”

Tax season kicks off with IRS short on staff – Jay Heflin, Washington Examiner

Every year taxpayers wonder how quickly they can expect to see a refund and while many may still have a short time to wait, this year could be slower for some.

“Receiving a refund can normally take up to six weeks, but staffing issues at the agency might make that turnaround time much longer.”

Increased amended return potential this year may also play a role.

“[Amended returns] eventually [are] going to slow things down,” said Mel Schwarz, Director of Tax Legislative Affairs at the tax firm Eide Bailly.”

How the IRS handles the issue will matter.

“’It’s going to depend upon how much effort the IRS decides to devote to examining claims as opposed to just paying them and coming back and examining those they decide to examine after the tax season is over,’ Schwarz said.”

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