The IRS issued proposed regulations that would clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83.
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IRS Issues Guidance, Requests Comments on Smart Cards and Debit Cards Used for Transit Fares
The IRS asked for comments on issues regarding the use of smart cards and debit or credit cards to pay transit fares.
IRS to Close Offices as Part of Administration’s Cost-Cutting Efforts
The IRS announced that 43 smaller offices will be closed and space in many larger facilities will be reduced
Offer in Compromise Rules Made More Flexible in Expansion of Fresh Start Program
The IRS announced that it is making the terms under which it will accept offers in compromise more flexible.
Final Regs. Issued on Health Insurance Premium Tax Credits
The IRS issued final regulations governing the Sec. 36B health insurance premium tax credit enacted by 2010’s health care legislation.
Accounting Firm Payments to Owners Flunk Independent Investor Test
The Seventh Circuit held that an accounting and consulting firm organized as a C corporation could not deduct payments to related entities because they were dividends, not compensation for services rendered by the firm’s owners.
Farm Debtors Must Pay Capital Gain Tax in Full, the Supreme Court Holds
The U.S. Supreme Court ruled that farmers who sold farm assets during a bankruptcy reorganization under Chapter 12 of the Bankruptcy Code were liable for the full amount of the capital gains tax that resulted from the sale
Obligations Arising From Certain Upfront Payments Made by CFCs Are Not U.S. Property
The IRS issued temporary regulations relating to the treatment of upfront payments made pursuant to certain notional principal contracts for federal income tax purposes.
Illinois “Click-Through Nexus” Law Held Unconstitutional
The Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional.
TIGTA and Congress Focus on Identity Theft and Tax Fraud
The House Ways and Means Oversight and Social Security Subcommittees held a hearing on tax fraud involving identity theft and TIGTA released a report saying the IRS does not handle identity theft issues well.
Final Regs. Explain Allocation of Deduction for Prepaid Mortgage Insurance Premiums
The IRS issued final regulations governing the allocation of prepaid mortgage insurance premiums for periods after Dec. 31, 2010.
Terms in OIC Agreement Take Meaning From Code, Court Holds
The Second Circuit held that the terms “refund” and “overpayment” in an OIC agreement are specialized tax terms that take their meaning from the Code and are not given their “plain English” meanings, despite the colloquial tone of the agreement.
Basis Reporting Rules for Debt Instruments and Options Postponed for One Year
The IRS postponed the basis and gain reporting rules under Secs. 6045(g), 6045(h), 6045A, and 6045B for debt instruments and options, so they will apply to those acquired on or after Jan. 1, 2014.
HSA Inflation Adjustments Issued for 2013
The IRS issued the inflation-adjusted figures for the annual contribution limitation for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013.
IRS Proposes Expanding Tax Return Information It Will Disclose to HHS Under Health Care Acts
The IRS issued proposed regulations relating to how it will release certain tax return information to the Department of Health and Human Services, as required by 2010’s health care legislation.
Congressional Subcommittee Hearing Centers on Expiring Tax Provisions
Witnesses told the House Ways and Means Select Revenue Subcommittee why particular tax breaks should be extended or made permanent in a hearing on April 26.
Supreme Court Affirms That 6-Year Limitation Period Does Not Apply to Overstated Basis
The Supreme Court affirmed that the extended six-year statute of limitation, which applies when a taxpayer “omits from gross income an amount properly includible” in excess of 25% of gross income, does not apply when a taxpayer overstates its basis in property it has sold.
Taxpayers Can Deduct Certain Local Lodging Expenses Under Proposed Rules
The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
Federal Circuit Dismisses Refund Suit Based on All-Zero Returns
A married couple who filed tax returns listing all income and tax due as “zero” were denied refunds in a decision by a U.S. Court of Appeals.
Rules for Reporting Interest on Deposits Paid to Foreign Taxpayers Are Finalized
The IRS issued final regulations requiring U.S. financial institutions to report interest payments to certain nonresident alien individuals of $10 or more per year.
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