Resource Library

Treasury recently released TD 9696, which contains final regulations relating to the deductibility of local lodging expenses. The final regulations are issued under Treas. Reg. 1.162-32. The regulations define local lodging expenses as expenses not deductible under IRC § 262(a), which disallows deductions for personal, living and family expenses. The regulations allow for the deduction…

The IRS recently issued Notice 2014-51, which exempts taxpayers that elect mark to market treatment under a non-section 1296 regime from the passive foreign investment company (“PFIC”) reporting requirements. Congress enacted the PFIC rules under the Tax Reform Act of 1986 to even the playing field between investors in domestic mutual funds and investors in…

On August 27, 2014, the Ninth Circuit issued two key decisions that significantly impact the ongoing landscape of worfkforce classification in holding that FedEx drivers in Oregon and California are employees, not independent contractors.  Slayman et al. v. FedEx Ground Package Sys., Inc. (Oregon); Alexander et al. v. FedEx Ground Package Sys., Inc. (California).  …

Congress enacted the medical device excise tax (“MDET”) in section 1405 of the Health Care and Education Reconciliation Act of 2010 to help pay for the cost of health care reform. The tax applies to sales of taxable medical devices made after December 31, 2012. Congress targeted the medical device industry with the MDET because…

On June 19, the U.S. Supreme Court ruled that taxpayers may question IRS officials regarding their reasons for issuing a summons by presenting credible evidence that the IRS issued the summons with an improper motive. The IRS has broad authority to issue summonses to determine “the correctness of any return.” I.R.C. § 7602. If the…

Workforce classification has been a hot-button issue for numerous years. Classification determinations regarding whether a worker is an employee versus an independent contractor impact liability to pay and withhold federal income tax, workers’ compensation, federal employment tax, and social security and Medicare taxes. Now Obamacare will up the ante. In recent years, state and federal…