Practitioners Cheer IRS Guidance on Minimum Distribution Waiver - Jonathan Curry, Tax Notes ($). "Notice 2020–51, 2020-29 IRB 1, released June 23, provides that a taxpayer who received an RMD at the start of this year can roll over that distribution into another eligible retirement plan. It also extends the deadline for making those rollovers to the later of 60 days after a distribution is received, or August 31."
The CARES Act provides that taxpayers are not required to take 2020 required minimum distributions from retirement plans and individual IRA accounts. This guidance allows taxpayers who already have taken such distributions to undo them.
IRS Allows Rollovers for 2020 RMDs through August 31 - Kristine Tidgren, Ag Docket. "The CARES Act allowed any taxpayer with an RMD due in 2020 to waive the RMD this year. This includes those who turned 70 1/2 in 2019 and would have had to take their first RMD by April 1, 2020. After the provision was enacted, some taxpayers who had already taken an RMD for 2020 had no option to take advantage of the CARES Act relief. A typical rollover is 60 days. This guidance changes that."
Extended Rollover Relief and Other Guidance Related to CARES Act Suspension of RMD Period for 2020 Released by IRS - Ed Zollars, Current Federal Tax Developments. "So long as a plan allows for rollover contributions, the amount can be rolled back into the same plan."
New August 31 Deadline To Return Required Minimum Distributions - Peter Reilly, Forbes. "Once you reach a certain age, you are required to start taking distributions from your retirement accounts every year."
A Second Look at the EIDL Program - Adam Sweet, Eide Bailly. "While the Paycheck Protection Program (PPP) has garnered most of small business owner’s attention over the last few months, the EIDL program could be attractive for any small business looking for additional assistance. Many small businesses that at first turned away from EIDL assistance in order to focus on a PPP loan may now find the EIDL program warrants a second look."
New PPP Rule Lays Out Rules for Owner-Employee Forgiveness - Eric Yauch, Tax Notes:
For S corporation owners, the rule points out that those owner-employees are capped by the amount of their 2019 cash compensation and employer retirement contributions made on their behalf. However, health insurance contributions made by the employer for S corporation owner-employees can’t be added separately because those payments are included in their employee cash compensation, the rule clarifies.
Related: How to Maximize Your Loan Forgiveness Under the Paycheck Protection Program
Treasury Dept. May Consider Extending Tax Filing Deadline a Second Time - Paul Kiernan, Wall Street Journal ($):
Asked in an interview at a virtual Bloomberg event if he was considering another delay to Sept. 15, Mr. Mnuchin said it is possible.
“As of now we’re not intending on doing that, but it is something we may consider,” he said.
That sounds to me like it's a real possibility. Stay tuned.
White House stimulus letter is an official IRS tax document you need to save - Kay Bell, Don't Mess With Taxes. "But now, after millions have received their stimulus money, it's a tad late to tell taxpayers that the letter needs to go into their tax record files. Or at this point in time, it's more likely that tax preparers will be asking their clients to try to locate Notice 1444, that is if the clients didn't just toss it in the trash after it arrived."
Deducting Domestic Travel: Substantiating Business Travel Deduction - Brett Hersh, Overnight Accountant. "There are three keys to proving that your tax deduction for a business trip is legit. First, you must show that you took the trip for business. Second, prove the majority of your destination time was for business, not something else. And, finally, you need records to show that the amounts deducted are correct and trip-related."
Global Tax Relief Efforts Vary in Scope and Time Frame in Response to COVID-19 - Cristina Enache, Tax Policy Blog. "Until now, countries have focused on short-term policies to provide immediate tax relief to struggling individuals and businesses. To mitigate the longer-term impacts of the crisis, countries should focus on long-term, pro-growth, and sustainable tax policies to help ensure a strong economic recovery."
Interview: Wayfair Two Years Later: Compliance and Cost - Jennifer McLoughlin, Tax Notes Opinions Blog. "Tax Notes legal reporter Jennifer McLoughlin interviews Richard Cram, director of the Multistate Tax Commission’s National Nexus Program, on the state of the sales tax landscape two years after the Supreme Court ruling in South Dakota v. Wayfair Inc."
Tax Court Announces It Will Start Receiving Mail - Keith Fogg, Procedurally Taxing. "In an announcement on Friday, June 19 the Tax Court stated that it will start receiving mail on July 10. The announcement indicates that approximately four months of mail will be delivered to the Court that day."
U.S. Brings Summons Enforcement Suit against Del. Dept of Insurance re Micro-Captives - Jack Townsend, Federal Tax Crimes Blog. "Some of the claims indicate cozy relationships between the regulators and the regulated..."
Related: Behind the Scenes of Captive Insurance: A Reportable Transaction
Green, indeed. The IRS has added the Bentley Bentayga Hybrid to its list of Qualified Plug-in Electric Drive Motor Vehicles. It sounds like a nice thing. From the Bentley Website:
First, Bentayga reshaped the SUV. Now, it is redefining the hybrid. Bentayga Hybrid is Bentley’s first step on a journey towards an electric future, embracing forward-thinking technology to enhance modern living. It delivers all the impressive performance and exquisite craftsmanship you would expect from a Bentley, and adds an exceptionally serene driving experience.
The good news is now the IRS will cover $7,500 of the purchase price for your Bentayga through the Section 30D tax credit. The bad news? That leaves you $149,400 left to come up with to buy one, according to Edmunds.
We're Here to Help
