Federal Tax Update: Tax Basis Capital Accounts and the 2020 Form

https://vimeo.com/471938009

https://www.currentfederaltaxdevelopments.com/podcasts/2020/10/25/2020-10-26-tax-basis-capital-accounts-and-the-2020-form-1065

 

This week we look at:

• Fees to enter a daily fantasy sports contest is a wager in the view of the IRS
• Taxpayers must follow all of the criteria listed in Revenue Procedure to take advantage of the ruling
• IRS adds retrieving funds from state unclaimed property fund to list of items for self-certification for late retirement plan rollover
• Withholding is required if an employer sponsored retirement plan transfers funds to state unclaimed property  fund
• Draft instructions for 2020 partnerships released outlining requirement to report K-1 capital accounts on tax basis
• CPA denied in attempt to reduce potential liability by claiming failure of another tax adviser in representing client to reduce penalty
• Short term extension granted to October 31 to file FBAR reports