A new law allows taxpayers to exclude from income money they receive to compensate them for being wrongfully incarcerated and to claim refunds for earlier tax years if they included such damages in income.
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How to Calculate the Investment in the Contract for Phased Retirement Distributions
The IRS explained how to calculate the investment in the contract for retirement benefits distributed while the employee is still working part time and that nonqualifying contracts could not take advantage of the same rules.
IRS Rules on Qualified Real Property Indebtedness
The IRS issued a ruling explaining when a taxpayer can exclude cancellation-of-debt income for debt forgiven in connection with property held in a real property trade or business.
Final Regulations Clarify COD Rules for Grantor Trusts and Disregarded Entities
The IRS finalized regulations that provide rules for determining who is the “taxpayer” for purposes of applying the Sec. 108 discharge-of-indebtedness rules to a grantor trust or disregarded entity.
IRS Did Not Discover or Help All Get Transcript Data Breach Victims
The TIGTA criticized the IRS’s failure to identify and assist all taxpayers whose tax return and other data may have been accessed by cybercriminals in last year’s Get Transcript breach.
Taxpayers Can Get Tax Return Transcripts Online Once Again
Announcing increased security and authentication procedures, the IRS said that it had reinstated its Get Transcript Online service, which had been breached by cybercriminals last year.
Tax-Free REIT Spinoffs Are Curtailed
The IRS issued regulations restricting the ability of C corporations to use this method.
FASAB Seeks Transparency on Tax Expenditures
The Federal Accounting Standards Advisory Board proposed a standard with the intention of providing the public more information about the U.S. government’s tax expenditures.
IRS Slashes Application Fee for Small Exempt Organizations
The fee to use the popular Form 1023-EZ will be lowered, starting July 1.
AICPA Members Weigh In on IRS Service Levels
Problems included trouble getting through on the phone and trouble reaching IRS representatives who could answer their questions. Written communications with the agency were another source of frustrations.
Mary Kay Sales Consultant’s Retirement Payments Subject to Self-Employment Tax
The Eleventh Circuit Court of Appeals held that payments a retired Mary Kay sales consultant received from the cosmetics company were subject to self-employment taxes because they were payments of deferred compensation.
Final Regulations Change Allocation Rules for Roth IRA Rollovers
The regulations allow taxpayers to allocate pretax amounts to direct rollovers, rather than having to make pro rata allocations.
IRS Future State Is Not a One Size Fits All
Nina Olson, the national taxpayer advocate, heard from tax practitioners and taxpayer groups on how the IRS can modernize its taxpayer services.
CPAs Helping Guide Tax Administration and Affecting Tax Policy
As it works through a long list of priorities and plans for its “future state,” the IRS should look to CPAs, who based on their experience can provide a unique viewpoint.
Prop. Regs. Would Impose Reporting Requirements on Foreign-Owned Disregarded Entities
Foreign-owned disregarded entities, such as LLCs, would be required to report transactions with their owner and keep records under rules proposed by the Internal Revenue Service.
New Revenue Procedure Updates List of Automatic Accounting Method Changes
The IRS updated the procedures taxpayers must use to make automatic changes in accounting method.
LB&I Expands Prefiling Agreement Program
This program is intended to resolve, before an LB&I taxpayer’s tax return is filed, issues that are likely to be disputed in post-filing audits.
Regulations Clarify: Partners Cannot Be Employees
The IRS issued temporary regulations clarifying that partners in a partnership that owns a disregarded entity cannot be treated as employees of the disregarded entity.
IRS Releases 2017 Health Savings Account Limits
The IRS issued the inflation-adjusted figures for calendar year 2017 for the annual contribution limits for health savings accounts.
Final Regulations Clarify $10,000-Per-Day Material Adviser Penalty
The IRS issued final rules on how to apply the $10,000-per-day penalty under Sec. 6708 when a material adviser fails to provide the Service a list of advisees with respect to reportable transactions.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
