Video instructions and help with filling out and completing Will Form 843 Tangible

Instructions and Help about Will Form 843 Tangible

This is the current federal tax development for the week of January to 23rd 2017 current federal tax developments are brought to you by your state Society of CPAs and Nichols Patrick cpe a division of valois causal Institute this week is sometimes you just can't give them money and this was going to look at the following developments first we'll start out with discussion up release it was granted by the IRS when the CPA firm accidentally failed to have the client file upon 3115 the IRS loses a case on a passive activity issue when the Tax Court accepts the logic of a technical advice memorandum the IRS issued after the trial concluded to decide that based on that and based on the logic of that that essentially the taxpayer was a pet was passive with regard to the activity in question we'll also take a look at a second issue on the same case where the tax court applied the rank Meyer case decision but this time against the IRS to decide is that same taxpayer was not subject of blunt attacks on the flow-through income will then move on to the fact that the IRS would not allow an employer to voluntarily pay money after the statute had closed when it made an error in the payroll tax report but we'll discover there's a reason for that and finally we'll give you a preview the IRS has issued the proposed regulations dealing with the comprehensive partnership audit rules will discuss some of the highlights of that do a little bit this week i'm planning to a much deeper dive on to it later so that we can take a look at it next week because it's 277 pages long and it's going to take a little while to digest that one so just want to let you know that we'll talk about the basics of how that gets started here and then we'll go on to other things and hopefully give you a little more detail in the coming weeks well it is coming to the end of the cpe season but we do still have some updates that are going out there and in fact there are set of four of them that's going to be going on with which Rogers in Ohio this will be the federal tax update for industry coming up and there are four dates scheduled this has been a tradition in a while where we've done a tax update for business geared towards CPAs and Industry and that will start on Valentine's Day in Cincinnati Ohio we're basically just outside Cincinnati in Fairfield on February's 16th will be nearer Toledo Ohio so you have a session there on the 17th in the Cleveland area and on the twenty-fourth of februari the final session will be held live in Columbus and also will be webcast by the Ohio society so if you want to pick up if you in any of those areas or you just want to pick up the webcast you can contact the Ohio Society of CPAs a lot of information on how you want to sign up this is going to deal with updates related to industry changes that we've had in the past year and up through the dates of the presentation again that's going to be coming up here in February from the 14th through the 24th if you're around one of those four cities check with the Ohio Society of CPAs up for getting yourself signed up to get yourself started for update for industry ce pas let's start with our first issue this weekend this actually was one that's an interesting case where it's illustrative of what's really an issue that we often have inside a CPA firm that when we go to change how we do things sometimes things fall through the cracks and that's what happened here this is private letter ruling 2017 02 02 one issued on January the 13th now this started out fairly simply the taxpayer in question in consultation with the taxpayer CPA because I really don't think the average clients going to come up with this idea on their own took a look at what they were doing with regard to how they were handling prepaid insurance and decided that the I under they could change their method of accounting to use a 12-month look forward period and in essence accelerate their deduction for the insurance but the problem that became here was of course that is a change of method well the CPA suggested they do this the client said yeah that's makes sense they so they change their methods the CPA in question and the firm prepared to 3115 which of course you have to file you must have the irises permission to change the method even in a case like this where the IRS allows you to change the method automatically the CPA firm computed the section 41 a adjustment to make this change and they made sure that in fact the taxpayer had recorded the item properly and they put the proper deduction on there but a couple of problems arose first thing was the CPA firm in that year had decided to change over their system so they're going to be doing a paperless system for handling their work papers and most of us know that you know that that transition when we did it certainly it's wonderful when you're on the other side of it but the year you do it it's a little complicated and people get confused adding to the confusion the CPA firm in question had acquired another CPA firm this same year so we both had the problem of integrating a integrating two firms together and we had the problem of converting over to a paperless system well under the new system that the CPA firm worked under there was a tracking system that they