Key Takeaways
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Retirement Accounts
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Hunter Biden
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Taxes on Tips?
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Research Credit
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Conservation Easements
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Chevron
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Daiquiris
Retirement Accounts
Final IRS Rules Will Let Workers Keep Cash in 401(k)s Longer – Ben Miller, Bloomberg ($):
The final rules (TD 10001; RIN:1545-BP82) released Thursday reflect changes from the SECURE Act 2.0 that allow account holders to leave 401(k), 403(b), and individual retirement account savings in place past the previously prescribed age of 70½ while still avoiding heavy excise taxes typically associated with late withdrawal of those assets.
IRS Keeps Contentious Required Minimum Distribution 10-Year Rule – Caitlin Mullaney, Tax Notes ($):
“While certain changes were made in response to comments received on the proposed regulations issued in 2022, the final regulations generally follow those proposed regulations,” the IRS said in a July 18 release announcing the final rules (T.D. 10001).
Final IRS Rules Require Beneficiaries to Take Distributions – Anna Scott Farrell, Law360 ($):
The IRS said the suggestion from commenters that beneficiaries should not have to continue the distributions — specifically, if the remaining account balance is required to be fully distributed within 10 years of the individual's death — conflicted with a plain reading of the applicable laws.
Hunter Biden
Hunter Biden seeks dismissal of tax, gun cases, citing decision to toss Trump's classified docs case – Eric Tucker and Alanna Durkin Richer, Washington Post:
The requests in federal court in Delaware and California underscore the potential ramifications of U.S. District Judge Aileen Cannon’s dismissal Monday of the classified documents case against Trump and the possibility that it could unsettle the legal landscape surrounding Justice Department special counsels.
Taxes on Tips?
No Taxes on Tips? A Trump Idea Gains Ground. – Andrew Duehren, New York Times:
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The proposal has rapidly become more than just a rally talking point. The Republican Party has officially embraced it in its platform, and House Speaker Mike Johnson, Republican of Louisiana, has said he would “pass it as soon as we can.” Some Democrats are also warming to making tipped income tax-free, with the two senators representing Nevada, a swing state with large restaurant and casino industries, endorsing it.
Research Credit
IRS Research Credit Proposal Roils Taxpayers Even After Tweaks – Caleb Harshberger, Bloomberg ($):
The IRS issued the revised draft form in June, exempting smaller businesses from proposed reporting requirements. In a change from revisions proposed last fall, it also cut the amount of information taxpayers would have to report when claiming the credit to no more than 80% of research credit claims or no more than 50 business units.
Conservation Easements
New IRS Easement Settlements Put Tax Pros in A Pickle – Kat Lucero, Law360 ($):
In settlement letters this month, the Internal Revenue Service offered much lower tax and penalty rates to several partnership entities whose tax deduction claims for their conservation easement donations are under examination. The offer stands in glaring contrast to what the agency had proclaimed four years ago in its first public settlement program for litigated easement cases, when it said there would be no better settlement offer.
Anti-Injunction Act Thwarts Easement Appraiser’s Penalty Suit – Kristen A. Parillo, Tax Notes ($):
William Summerour’s suit must be dismissed because he is effectively trying to stop the IRS from collecting a penalty treated as a tax, the U.S. District Court for the District of Columbia held in a July 16 opinion in Summerour v. IRS.
Ohio Developer’s Conservation Easement Try Rebuffed by Tax Court – Tristan Navera, Bloomberg ($).
“A developer was “negligent” in trying to claim a conservation easement for the redevelopment of Cleveland’s oldest skyscraper by claiming it was giving up on a far larger project, the US Tax Court said Tuesday.”
Tax Court Says It Erred by Not Evaluating Penalty on Partnership – Mike Vilensky, Bloomberg ($).
“The US Tax Court Wednesday said it made a “substantial error” by failing to evaluate if a negligence penalty applied to a Georgia partnership when it disallowed the partnership’s $20.67 million charitable contribution deduction on a conservation easement.”
Chevron
YA Global Pushes Tax Court to Revisit Withholding Decision – Kristen A. Parillo, Tax Notes ($):
In a July 11 pleading to the Tax Court in YA Global Investments LP v. Commissioner, the fund sought permission to move for reconsideration of the court’s November 2023 precedential opinion (161 T.C. No. 11).
Big Companies Get Boost in Tax Disputes – Richard Rubin, Wall Street Journal:
Judges or lawyers in at least five pending tax lawsuits—including cases involving FedEx and 3M—have already raised the June ruling in Loper Bright Enterprises v. Raimondo, which overturned a 40-year-old framework known as the Chevron precedent for how courts evaluate regulations.
What Day is it?
Its National Daiquiri Day. Finally.
For those of you looking to celebrate this weekend, Saturday is Moon Day. Not *that* kind of moon, keep your pants on. And Sunday is National Ice Cream Day, a day definitely worth celebrating!
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