The discrepancies between alimony income reported by taxpayers and alimony deductions claimed resulted in $2.3 billion in excess deductions in 2010, TIGTA reported.
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Commissioner Calls for Greater IRS Funding
The IRS needs more money to effectively do its job, especially with its added responsibilities under the Patient Protection and Affordable Care Act. That was the message IRS Commissioner John Koskinen delivered to attendees at the American Bar Association Tax Section’s spring meeting in Washington on Friday.
Final Rules Govern Tax Treatment of Distributions to Pay Accident or Health Insurance Premiums
The IRS finalized regulations that provide that distributions from qualified retirement plans to pay accident or health insurance premiums are taxable unless a statutory exclusion applies.
Final Rules on Fiduciary Fees Are Issued
The IRS issued final regulations on the controversial question of which costs incurred by trust and estates are subject to the 2% floor on miscellaneous deductions under Sec. 67(a).
Accounting Method Change Procedures for Sales-Based Royalties and Vendor Allowances Are Announced
Taxpayers who are adopting the new rules for sales-based royalties and vendor allowances under Sec. 263A and Sec. 471 were given new procedures for obtaining automatic consent to accounting method changes to conform to those rules.
Proposed Rules Would Amend Definition of Acquiring Corporation in Corporate Reorganizations
The IRS issued proposed regulations under Sec. 381 that in certain acquisitions would change which corporation succeeds to the tax attributes, including the E&P, of the transferor or distributor corporation.
Tax Owed on Full Sale Price Where Taxpayer Won’t Provide Cost Basis Information
The Eleventh Circuit upheld a deficiency notice of more than $5 million against a taxpayer who reported adjusted gross income of $22,921 and taxable income of $13,221 on his late-filed 2006 return.
IRS Announces Two-Year FATCA Enforcement Transition Period
Foreign financial institutions that make a good-faith effort to comply with the requirements of FATCA will benefit from lighter enforcement during 2014 and 2015.
Tenth Circuit Throws Out IRS Summonses
In a decision that creates a split from five other circuit courts, the Tenth Circuit Court of Appeals quashed IRS summonses that were issued after the 23-day period required under Sec. 7609(a)(1).
“Killer B” Anti-Abuse Regulations Are on the Way
The IRS announced that it will amend the existing regulations on cross-border reverse triangular reorganizations, popularly known as “Killer B” transactions.
IRS Issues 2015 Inflation Adjustments for HSAs
The IRS issued the calendar year 2015 inflation-adjusted figures for the annual contribution limits for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Taxpayers Must Reveal Tax Shelter Opinion Letters Despite Attorney-Client Privilege
By attempting to establish good-faith and state-of-mind defenses, taxpayers put their legal knowledge and understanding into contention, and therefore they waived attorney-client privilege.
Foreign Housing Expense Limitations Issued for 2014
On Monday, the IRS provided its annual list of inflation-adjusted limitations on foreign housing expenses for 2014.
Horse Breeder Materially Participated
The Tax Court held that a taxpayer materially participated in his horse-breeding activity for 2002 through 2004 and therefore was not barred from deducting his losses as passive activity losses under Sec. 469.
Guidance Issued on Application of Windsor to Retirement Plans
Administrators of qualified retirement plans must recognize the same-sex spouses of legally married participants as of June 26, 2013, under guidance issued by the IRS.
Taxpayers Can Claim Charitable Contributions for Typhoon Relief on 2013 Returns
The IRS announced procedures under the Philippines Charitable Giving Assistance Act, which allows taxpayers to take deductions for cash contributions to qualified charities for the relief of victims of Typhoon Haiyan on their returns for the 2013 tax year.
Plan Administrators Can Assume Certain Rollovers Are Valid
The IRS ruled that a plan administrator for a plan that is qualified under Sec. 401(a) may reasonably conclude in the situations described in the ruling that a potential rollover contribution is valid under Regs. Sec. 1.401(a)(31)-1, Q&A-14(b)(2).
AICPA Recommends Changes to Net Investment Income Tax Rules
The AICPA submitted a comment letter to the IRS recommending a number of changes to the Sec. 1411 regulations on the application of the net investment income tax to charitable remainder trusts when final regulations are issued.
How to Calculate Employer Health Care Responsibilities
To determine whether a business is subject to the employer mandate penalty under the Patient Protection and Affordable Care Act, the business must determine the number of its full-time employees, which includes its full-time equivalent employees (FTEs).
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.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
