The IRS announced on Tuesday that state ABLE programs that are established before the Service issues guidance under Sec. 529A will be deemed to comply with the rules when they are issued.
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Long-Haul Truck Driver Has No Tax Home
A long-haul truck driver who spent most of the time on the road did not have a tax home that would allow him to deduct his unreimbursed travel expenses because he was not away from home, the Tax Court held.
IRS Considering Free E-Filing for Employment Tax Returns
The IRS announced that it is considering opening a free e-file program for businesses to e-file employment tax returns.
Safe Harbor Proposed for Calculating Slot Machine Gains and Losses
A proposed revenue procedure would permit gamblers engaging in electronically tracked slot machine play an optional safe harbor method to determine a wagering gain or loss from their slot machine play based on day-long play sessions.
Supreme Court Holds Trade Association Can Challenge Colorado’s Amazon Law
The federal Tax Injunction Act does not prevent the Direct Marketing Association from challenging a Colorado law imposing notification and reporting requirements on out-of-state retailers the U.S. Supreme Court held on Tuesday.
Taxpayers Who Already Filed 2014 Returns Using Incorrect Forms 1095-A Won’t Have To Pay More Tax
The Treasury Department announced on Tuesday that taxpayers do not have to file amended returns if they already filed their 2014 tax returns relying on forms sent by the government that contained incorrect information about their health coverage and any advance premium tax credit they received.
IRS Asks for Comments on Proposed Rules for High-Cost Health Plans
To prepare for the new excise tax on so-called Cadillac high-cost health insurance plans, the IRS is asking for comments on proposed approaches to creating guidance on issues involving the tax when it becomes effective in 2018.
Thousands Receive Incorrect Health Care Tax Forms; Signup Period Extended
The government announced that many taxpayers who signed up for health insurance on the site have received an incorrect Form 1095-A for 2014. It also announced an extension of time for uninsured taxpayers to sign up for insurance on the website.
Employers Have More Time to Claim Work Opportunity Tax Credit
The IRS announced that it was extending the time employers that want to claim the work opportunity tax credit have to file Form 8850 for 2014 hires.
Sec. 4980D Excise Tax Relief Is Available for Certain Small Employers
The IRS announced transition relief from the application of the Sec. 4980D excise tax, which applies to health plans that do not meet the market reform requirements of the Patient Protection and Affordable Care Act.
Employee Consent to Employment Tax Refunds Could Be Obtained Electronically
The IRS issued a proposed revenue procedure that would permit employers who file refund claims for overpaid FICA and RRTA taxes to obtain their employees’ consent to the refund claims electronically.
Small Businesses Won’t Have to File Form 3115 to Comply with Repair Regs.
Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, the IRS announced.
Most Outstanding Claims for FICA Tax Refunds Will Be Denied, IRS Announces
The IRS announced that it will disallow all refund claims filed while resolution of the issue of whether severance payments to employees are subject to FICA tax was pending, as well as the appeals filed in response to the denial of refund claims.
Final Rules Govern Foreign Tax Credit Splitter Arrangements
The IRS issued regulations that prohibit taxpayers from taking a foreign tax into account for federal foreign tax credit purposes before the tax year in which the taxpayer takes the related income into account.
2015’s Dirty Dozen Tax Scams
Phone scams, phishing, and identity theft topped this year’s IRS list of the “dirty dozen” tax scams.
IRS Issues Revised 2014 and 2015 Passenger Automobile Depreciation Limits
The IRS issued revised numbers for the amount of depreciation taxpayers can take for the first year they use a passenger automobile (including a truck or van) for business in 2014 and the figures for 2015.
Offshore Voluntary Disclosure Program to Remain Open Indefinitely
The IRS stated that it intends to keep its Offshore Voluntary Disclosure Program open until it announces otherwise.
Taxpayers Get Penalty Relief for Incorrect Premium Tax Credit Advance Payments
The IRS will provide automatic penalty relief for taxpayers who, when they reconcile advance payments of the premium tax credit they received for 2014 to the amount of the credit they are entitled to on their income tax returns, find they owe additional tax.
Charter Schools to Be Allowed to Participate in Government Retirement Plans
The IRS announced that it will develop regulations under Sec. 414(d) that would permit a state or local retirement system that qualifies as a governmental plan to cover employees of charter schools.
Details of the President’s State of the Union Tax Proposals
President Barack Obama used Tuesday’s State of the Union address to announce that he will propose tax increases for higher-income individuals and provide tax relief for middle-class taxpayers.
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.
