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Tax Flash : Summary of 2019 Property Tax Changes

This is a summary of 2019 legislation affecting property taxes issued by the BOE on December 4, 2019. All bills become effective January 1, 2020, unless otherwise specified.

AB 46 (Carillo), Chapter 9
Among others, amends section 253 of the Revenue and Taxation Code.
Veterans' Exemption. Replaces mental illness terms with more culturally sensitive terms and replaces gender references with gender neutral references.

AB 587 (Friedman), Chapter 657
Adds section 65852.26 of the Government Code.
Sale of Accessory Dwelling Unit. Allows an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer if all of the following are met:


The property was built or developed by a qualified nonprofit corporation receiving the welfare exemption;


A recorded contract exists that imposes an enforceable restriction upon the sale that ensures the property will be preserved for affordable housing for 45 years for owner-occupied housing;


The property is held pursuant t…

IRS Criminal Investigation releases Fiscal Year 2019 Annual Report; celebrates 100 years

IR- 2019-199
Internal Revenue Service: Criminal Investigations Division (CID): 2019 annual report


IR-2019-199
WASHINGTON — The Internal Revenue Service today released the Criminal Investigation Division's (CI)annual report, highlighting significant successes and criminal enforcement actions taken in fiscal year 2019. The report also commemorates CI's 100th year anniversary as a law enforcement agency.
“CI is critical to the overall enforcement efforts of the IRS in pursuing its Mission in a fair, impartial, diligent and, where appropriate, tenacious manner.” said IRS Commissioner Chuck Rettig. “The Fiscal Year 2019 Annual Report summarizes various CI activities throughout the year but vastly understates the importance of CI to the overall IRS mission. CI supports the efforts of compliant taxpayers by visibly demonstrating the risks of noncompliance thereby helping otherwise honest taxpayers stay honest and compliant.”
Key focuses of CI in fiscal year 2019 included cybercrimes, with…

IRS issues new guidance on tax and reporting rules for virtual currency

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Press Release
FOR IMMEDIATE RELEASE



Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

NEWPORT BEACH November 29, 2019 — As part of a wider effort to assist taxpayers and to enforce the tax laws in a rapidly changing area, the Internal Revenue Service today issued two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.

Expanding on guidance from 2014, the IRS is issuing additional detailed guidance to help taxpayers better understand their reporting obligations for specific transactions involving virtual currency. The new guidance includes Revenue Ruling 2019-24 (here) and frequently asked questions (here).

The new revenue ruling addresses common questions by taxpayers and tax practitioners regarding the tax treatment of a cryptocurrency hard fork. In addition, a set of FAQs address virtual currency transactions for those who hold virtual currency as a capital asset.

"The IRS is commit…

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to Tax Evasion

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Press Release
FOR IMMEDIATE RELEASE

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to tax Evasion

NEWPORT BEACH November 23, 2019 -- James Roy McDaniel, 66, who pleaded guilty before United States District Judge S. James Otero to one count of tax evasion, is scheduled to be sentenced on February 3, 2020. At sentencing, McDaniel could receive a statutory maximum sentence of five years imprisonment.  Because this is his second criminal tax offense his chances of receiving a higher sentence are increased.

McDaniel was a licensed California attorney for more than two decades, until he pleaded guilty in late 2004 to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime, and he surrendered his license to practice law in California. In that case, McDaniel’s failure to report income resulted in a tax loss of $677,368 to the federal government, according to court documents. McDaniel’s ad…

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to Tax Evasion

Image
Press Release
FOR IMMEDIATE RELEASE

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to tax Evasion

NEWPORT BEACH November 23, 2019 -- James Roy McDaniel, 66, who pleaded guilty before United States District Judge S. James Otero to one count of tax evasion, is scheduled to be sentenced on February 3, 2020. At sentencing, McDaniel could receive a statutory maximum sentence of five years imprisonment.  Because this is his second criminal tax offense his chances of receiving a higher sentence are increased.

McDaniel was a licensed California attorney for more than two decades, until he pleaded guilty in late 2004 to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime, and he surrendered his license to practice law in California. In that case, McDaniel’s failure to report income resulted in a tax loss of $677,368 to the federal government, according to court documents. McDaniel’s ad…

IRS Increases Enforcement of Syndicated Conservation Easements

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Press Release
FOR IMMEDIATE RELEASE



IRS Increases Enforcement Action on Syndicated Conservation Easements

NEWPORT BEACH November 18, 2019 -- While speaking at the American Institute of CPAs (AICPA) 2019 National Tax Conference in Washington, D.C., IRS Commissioner, Rettig, and IRS Chief Counsel, Desmond, both separately underscored the IRS’s increased enforcement efforts toward abuses of certain tax-advantaged land transactions under Code Sec. 170(h)..

Rettig stated that the IRS appreciates the value of conservation easements, but it does not appreciate the activities that have gone on with respect to the syndicated conservation easements -- there are some artificial appraisals there… some fatal flaws.

Rettig, reiterating the IRS’s tough stance on the matter, as noted in IRS press release dated November 12, said that the IRS is not going to "stand down." The information issued in the November 12 news release was "fair warning," Rettig said. Likewise, IRS Chief Counsel, …

IRS updates guidance for deductible business, charitable, medical and moving expenses

IR-2019-183, November 14, 2019


WASHINGTON — The Internal Revenue Service today issued guidance for taxpayers with certain deductible expenses to reflect changes resulting from the Tax Cuts and Jobs Act (TCJA).

Revenue Procedure 2019-46 (PDF), posted today on IRS.gov, updates the rules for using the optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

The guidance also provides rules to substantiate the amount of an employee's ordinary and necessary travel expenses reimbursed by an employer using the optional standard mileage rates. Taxpayers are not required to use a method described in this revenue procedure and may instead substantiate actual allowable expenses provided they maintain adequate records.

The TCJA suspended the miscellaneous itemized deduction for most employees with unreimbursed business expenses, including the costs of operating an automobile for business purposes. Ho…