Wilson Tax Law Group Receives 2020 Best of Newport Beach Award

Press Release





FOR IMMEDIATE RELEASE





Newport Beach Award Program Honors the Achievement





NEWPORT BEACH May 7, 2020 -- Wilson Tax Law Group has been selected for the 2020 Best of Newport Beach Award in the Professional Services category by the Newport Beach Award Program.





Each year, the Newport Beach Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Newport Beach area a great place to live, work and play.





Various sources of information were gathered and analyzed to choose the winners in each category. The 2020 Newport Beach Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Newport Beach Award Program and data provided by third parties.





About Newport Beach Award Program





The Newport Beach Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Newport Beach area. Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.





The Newport Beach Award Program was established to recognize the best of local businesses in our community. Our organization works exclusively with local business owners, trade groups, professional associations and other business advertising and marketing groups. Our mission is to recognize the small business community's contributions to the U.S. economy.





SOURCE: Newport Beach Award Program





Media Relations
Email: info@wilsontaxlaw.com
URL: https://www.wilsontaxlaw.com





Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.For further information, or to arrange a consultation, please contact:





Wilson Tax Law Group, APLC





Newport Beach and Yorba Linda, California





Tel: 949-397-2292 (Newport Office)





Tel: 714-463-4430 (Yorba Linda Office)

IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans

May 12, 2020





WASHINGTON — The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes.





The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550.





Notice 2020-29 (PDF) provides greater flexibility for taxpayers by:





  • extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
  • expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
  • applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.




Notice 2020-33 (PDF) responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.





Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.





For further information, or to arrange a consultation, please contact:





Wilson Tax Law Group, APLC





Newport Beach and Yorba Linda, California





Tel: 949-397-2292 (Newport Office)





Tel: 714-463-4430 (Yorba Linda Office)

IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans

May 12, 2020





WASHINGTON — The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes.





The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550.





Notice 2020-29 (PDF) provides greater flexibility for taxpayers by:





  • extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
  • expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
  • applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.




Notice 2020-33 (PDF) responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.





Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.





For further information, or to arrange a consultation, please contact:





Wilson Tax Law Group, APLC





Newport Beach and Yorba Linda, California





Tel: 949-397-2292 (Newport Office)





Tel: 714-463-4430 (Yorba Linda Office)

IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans

May 12, 2020





WASHINGTON — The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes.





The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550.





Notice 2020-29 (PDF) provides greater flexibility for taxpayers by:





  • extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
  • expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
  • applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.




Notice 2020-33 (PDF) responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.





Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.





For further information, or to arrange a consultation, please contact:





Wilson Tax Law Group, APLC





Newport Beach and Yorba Linda, California





Tel: 949-397-2292 (Newport Office)





Tel: 714-463-4430 (Yorba Linda Office)

IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans

May 12, 2020





WASHINGTON — The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes.





The guidance issued today addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550.





Notice 2020-29 (PDF) provides greater flexibility for taxpayers by:





  • extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
  • expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
  • applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.




Notice 2020-33 (PDF) responds to Executive Order 13877, which directs the Secretary of the Treasury to "issue guidance to increase the amount of funds that can carry over without penalty at the end of the year for flexible spending arrangements." The notice increases the limit for unused health FSA carryover amounts from $500, to a maximum of $550, as adjusted annually for inflation.





Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.





For further information, or to arrange a consultation, please contact:





Wilson Tax Law Group, APLC





Newport Beach and Yorba Linda, California





Tel: 949-397-2292 (Newport Office)





Tel: 714-463-4430 (Yorba Linda Office)

Tax Court Slam Dunks Charitable Deduction Conservation Easement

A partnership was denied charitable contribution deduction because it had entered in an conservation easement that violated the perpetuity requirement of Code Sec. 170(h)(5) and the regulations. The Tax Court held that if there is a judicial extinguishment of an easement the donee receives a proportionate value of any proceeds.

The Easement Deed

The taxpayer had donated a conservation easement to a land trust and claimed a charitable contribution deduction under Code Sec. 170(a). The easement deed provided that, if the conservation restriction were extinguished at some future date, the donee would receive a share of the proceeds equal to the fair market value (FMV) of the easement on the date the contribution was made. The deed further provided that the donee’s share as thus determined would be reduced by the value of any improvements made by the donor after granting the easement.

The taxpayer argued that Reg. §1.170A-14(g)(6) does not say that the donee is entitled to a proportionate share of any proceeds upon extinguishment of the easement but proportionate value. It argued this means fixed value and because the regulation requires that the value be fixed as of the donation date, the donee was not entitled to any proceeds attributable to the value of post-donation improvements.

Windfall for Donees?

The IRS disallowed the deduction, contending that the extinguishment clause violated the requirements of Reg. §1.170A-14(g)(6). The Tax Court concurred with the Service’s reasoning and held that the easement deed violated the "protected in perpetuity" requirement of Code Sec. 170(h)(5), as interpreted in Reg. §1.170A-14(g)(6).

The Court held that the donee’s share of the "proportionate value" as used in the regulation means a fraction of the proceeds from a judicial extinguishment, and not a fixed value.

The taxpayer argued that it was unfair for a donee to receive extinguishment proceeds attributable to the value of improvements made solely by the donor because it would amount to an unintended charitable contribution for which it received no deduction. However, the Tax Court found that the purpose of the regulation is to avoid any windfalls to donors, not donees, if an easement was extinguished. The easement deed violated the regulation because the donee must be entitled to any proceeds from extinguishment or condemnation that were at least equal to the total proceeds multiplied by a fraction defined by the ratio of the FMV of the easement to the FMV of the unencumbered property determined as of the date of the easement deed.

The taxpayers were not held liable for accuracy-related penalties because the taxpayer acted reasonably and in good-faith. The partner was unfamiliar with the nuances of setting up a conservation easement and had relied on public letter rulings.

The Validity of the Regulation

The taxpayer challenged the validity of Reg. §1.170A-14(g)(6) which was addressed by the Tax Court in a concurrent opinion. The taxpayer contended the "proportionate value" approach to division of proceeds from a judicial extinguishment of the easement does not take into account for the possibility of donor improvements. The Tax Court held that the regulation was properly promulgated as it substantially revised the text regarding the proportionate value in response to comments and had only received one comment on the possibility of improvements. It therefore found that the regulation was valid under the Administrative Procedure Act, 5 U.S.C. Section 553.

The Tax Court further relied on the two-part test given in Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc. 467 U.S. 837 (1984) and held that the construction of Code Sec. 170(h)(5) as set forth in Reg. §1.170A-14(g)(6) was valid. The Treasury exercised reasoned judgment by adhering to a simple rule that split sale proceeds in a direct proportional manner on the basis of a fraction determined as of the date the gift was made. Because the regulation as drafted ensures satisfaction of the statutory mandate that the conservation purpose be "protected in perpetuity", the regulation was not arbitrary, capricious, or manifestly contrary to the Code.

Wilson Tax Law Group APLC (www.wilsontaxlaw.com) is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. The firm was founded in 2014 by Joseph P. Wilson, a former Federal tax prosecutor, trial attorney for the IRS and trial attorney for the Franchise Tax Board.
For further information, or to arrange a consultation, please contact:

Wilson Tax Law Group, APLC

Newport Beach and Yorba Linda, California
Tel: 949-397-2292 (Newport Office)

Tel: 714-463-4430 (Yorba Linda Office)

IRS Employees Ordered Back To Work


The IRS has called for thousands of employees to return onsite for "mission-critical functions," but some lawmakers are criticizing the agency’s move.  This comes as a twist after the IRS ordered all employees to evacuate the worksites as previously discussed in a prior post on March 21, 2020.



IRS Workers Must Obtain Their Own Protective Equipment


After obtaining an internal IRS email sent to employees last week, House Ways and Means Committee Chairman Richard Neal, D-Mass., and Ways and Means Oversight Subcommittee Chairman John Lewis, D-Ga., issued a statement over the weekend criticizing the IRS’s decision to call employees back onsite for work yet require those employees to bring their own face coverings.


"We understand better than nearly anyone in Congress that the IRS is of essential importance to the federal government and to our nation. It is understandable that in carrying out its mission during a crisis, the agency would require some employees to report back to work during perilous times. However, it is completely irresponsible and unethical for the IRS to demand those workers obtain their own protective equipment — this is the responsibility of the federal government to its workers," the lawmakers wrote in a joint statement. "The agency is expecting entirely too much of employees who are likely distraught over the health risks returning to work presents for themselves and for their families, as well as the potential repercussions they could face if they do not clock in on Monday with the mandated equipment in-hand."


Additionally, Neal and Lewis went on to say that IRS Commissioner Charles "Chuck" Rettig told Congress recently that 100 IRS employees have been diagnosed with COVID-19. "The IRS should not require any employees it deems essential to report to work until it is able to provide those individuals with the protective equipment they are required to wear," the lawmakers added.



IRS Statement


However, the IRS issued a statement on Saturday, April 25 saying that the agency has requested, but not required, thousands of employees to volunteer to return to work and provided an offer for incentive pay.  "No employees have been requested to return to work in a manner inconsistent with federal COVID-19 guidelines, and the requirement for employees voluntarily returning to the workplace to wear face coverings is an example of the IRS exceeding the federal safety guidelines and measures," the IRS said. "Employees can use any face covering that is consistent with CDC recommendations, including those fashioned from common household materials. The IRS also has been working to obtain PPE for our employees and expect many to be delivered as early as this weekend and upcoming week."  According to the IRS, employees are needed to fulfill the following key responsibilities:





  • opening mail that has been held for a number of weeks;




  • processing of paper tax returns that may offer refunds to taxpayers;




  • working on returns with refundable credits;




  • answering taxpayers’ questions on our toll-free lines; and




  • performing Income Verification Express Service and certain lien/levy functions.




This is a very uncomfortable and uncertain time, but no employee should be required to work without the proper safety measures in place.  Wilson Tax Law Group endorses any tax relief efforts being sought to assist those communities, industries, businesses and individuals negatively affected by the outbreak. Although tax relief doesn’t solve the problem it helps mitigate the financial fallout.  If you or your business has comments or concerns or requires professional and diligent legal tax help, contact the Wilson Tax Law Group at 949-397-2292.  Wilson Tax Law Group, APLC is an Orange County law firm specializing in Federal and State tax audits, internal compliance, FBAR, offshore bank account disclosures, and criminal tax, including appeals, trials, and collections. The Los Angeles and San Francisco Daily Journals have named Wilson Tax Law Group as one of the “Top 20 Boutique Firms in California”. Firm founder Joseph P. Wilson is a former IRS Attorney, Federal Tax Prosecutor, and California Franchise Tax Board Attorney.


Newport Beach Main Office
1401 Dove Street Suite 630
Newport Beach, CA 92660

Yorba Linda Branch Office
18281 Lemon Drive
Yorba Linda, CA 92886

By Appointment Only
949.397.2292 (Newport Beach Office Phone)
714.436.4430 (Yorba Linda Office Phone)

Website: https://wilsontaxlaw.com

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