Video instructions and help with filling out and completing Which Form 843 Spouse

Instructions and Help about Which Form 843 Spouse

This is the Nichols Patrick current federal tax developments for the week of September the nineteen twenty sixteen current federal tax developments are brought you by Nicholas Patrick CP incorporated and your state society of cpas imed zollars from taking a look at what's gone on this week in the area of federal taxes and this we're gonna have a few things happening we're going to take a look at a couple of issues here first going to take a look at a minister who decided that his vow of poverty should allow him to escape taxes and we'll discover up that does work in some limited cases but not the case this particular Minister was looking for we're also going to take a look at a question of what Salamone this will be a payment to a former spouse fairly significant payment but we're going to take a look at whether that payment truly was was not alimony take a look at the issue in another case about whether the income should probably been taxable and deductions properly taken by a corporation or the corporation shareholders will also then take a look at an organization that was denied tax-exempt 501 C 3 status because of private inurnment and finally we're going to take a look at what exactly could qualify for reasonable cause for late filing of a tax return so take a look at a lot of those issues here today so we're going to get ourselves here up and running let's go ahead and take a look one thing this happening this is where now passed the sep tember 15th due date for corporate partnerships etc the last time we're going to pass that date for some of the because trust will be moving next year to September 30th what we need is another date that we have to be racing towards again next year but they should we only have the one so I'm going to be doing a lot of events here on the road and I'm going to be in actually starting out this week in Sioux City Iowa actually across the river in the Nebraska just across the river in Nebraska but we're doing it for the Iowa side of CPAs so i'll be off there this week but then coming up afterwards and i'll go to North Dakota as I mentioned last week to do their conference but following that have got a series of events coming up here shortly in the state of Idaho so I thought I'd tell you about all of them here is one that we've got here coming up in September in October in September 29th and 30th in Boise i'll be doing a section on fringe benefits and then following down on the 30 I'll be doing partnership taxation advanced issues then following October 15 deadline i'm going to be doing a tour around the around the northern part in the west and i'll be in lewiston idaho on october twenty fourth and twenty-fifth i'll be doing an update on individual tax topics on the 24th update on business tax topics on 25th and then October thirty-first November first I'll repeat that same pair this time in twin falls idaho so if you're going to be looking for any of those courses going to be in those areas uh be sure to consider signing up for those courses and consider you know it's beginning at that time of year we're looking to updates all the other fun stuff in taxes so now is the time to consider getting yourself ready for your new cpe requirements for this year so with that let's go ahead and take a look at our first development for this week this is the case of white versus Commissioner this is case tax prep memorandum decision 2016 167 the case came down on September the 12th this particular individual now you know sometimes you think late valve poverty individuals who says I'm not subject to tax you start thinking about oh maybe this is one of those you know kind of shall we say the tax protesters I realized the IRS can't calm anymore but will kind of know what that category is no this is actually a gentleman who truly was a minister and he had been a minister for quite a while but he apparently discovered that there was this issue about ministers who've taken vows of poverty do not have to pay income taxes on the amounts that are paid for them for living expenses so he decided that well he would have he would go ahead and take the vow of poverty and his church went ahead and recognized that and he said well I should be able to escape taxes now one of the problems he had was he based his particular view of this on a 1919 IRS ruling that particular 1919 I RS ruling and this is OD 119 if you want to go look it up if you can find something that will give it to you that well told us a clergyman is not liable for any income tax on mounts received by him during the year from the parish of which he is in charge providing turns over to the religious order of which is a member all money received in excess of his actual living expenses on account of valve poverty that he has taken well he said in this case he basically did he had all the funds he received was deposited into an account now he was the only person who had the right to sign off on that account which was an interesting problem he used that to pay personal expenses the Tax Court said the only problem with that sir is that the IRS has actually updated this ruling and revenue ruling 70 70 to 90 essentially says that effectively you have to turn the money