March 2014

March 28, 2014

Trust Materially Participated in Real Estate Business

The Tax Court held that a trust materially participated in its rental real estate business and therefore could deduct the losses it incurred in conducting those activities as losses from nonpassive activities.

March 28, 2014

Final Rules Issued on Employment Tax Responsibilities of Designated Payer Agents

Final regulations contain rules on the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy its employment tax obligations instead of following normal IRS procedures to designate an agent.

March 27, 2014

Abuse Victims Who File Separate Returns Are Eligible for Premium Tax Credit

Victims of domestic violence who are afraid or unable to contact their spouse to file a joint return may be able to claim the Sec. 36B premium tax credit using procedures announced by the IRS.

March 26, 2014

Gambler’s Luck Turns in Second Trip to Tax Court

A taxpayer who consistently lost money playing the slots at two casinos in California was found not to have an actual and honest profit objective and could not deduct her gambling losses on Schedule C.

March 25, 2014

Supreme Court Rules Severance Payments Are Subject to FICA

The Supreme Court held in an 8–0 decision that severance payments to terminated employees are taxable wages for FICA tax purposes.

March 25, 2014

New Guidance Clarifies Tax Treatment of Bitcoin and Other Virtual Currencies

The IRS issued its first guidance on the tax rules that apply to virtual currencies, in the form of 16 questions and answers.

March 21, 2014

IRS Clarifies: Electronic Signatures Permitted for Form 8879

The IRS updated the online version of Publication 1345, Handbook for Authorized IRS e-File Providers of Individual Income Tax Returns, to clarify that electronic signatures are permitted for Form 8879 as well as Form 8878.

March 20, 2014

IRA Rollover Guidance Issued: IRS Will Follow the Tax Court

The IRS announced it will follow the recent decision in Bobrow, meaning no matter how many IRAs a taxpayer has, the taxpayer is limited to one IRA rollover per year.

March 13, 2014

IRS Expands Use of Electronic Signatures

The IRS provided new methods for taxpayers to electronically sign Form 8878.

March 10, 2014

New Procedure Permits Automatic Recognition of Consolidated Return Filing Status

The IRS announced that it will permit an affiliated group of corporations that did not file the required Form 1122 for all of its subsidiaries to be treated as if its subsidiaries had filed Form 1122.

March 5, 2014