The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.
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Individuals
Employing a VITA program to prepare students for professional practice
Having students prepare tax returns at a VITA center or university-run tax preparation center effectively increases knowledge in taxation and develops key skills accounting students often lack.
SALT cap challenge is denied Supreme Court review
The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.
Puerto Rico residents: Scope of income tax exemption for capital gains
The tax advantages available in Puerto Rico have recently captured the interest of both taxpayers and the IRS.
Cryptoassets: How should proof-of-stake rewards be taxed?
In light of the lack of guidance from the IRS and Treasury, the case for deferred recognition of income for staking rewards has recently gained traction.
Billionaire minimum tax could pose difficulties
The proposal in President Joe Biden’s fiscal 2023 budget to impose a 20% minimum tax on certain high-wealth individuals is seen as likely to raise thorny issues and likely even constitutional challenges.
Biden proposes higher corporate tax rate, 20% billionaire minimum tax
Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.
Individual taxpayers must answer cryptoasset question, IRS notes
Front and center on Form 1040 is whether taxpayers had a virtual currency transaction.
Opportunity zone program still plenty viable for clients with gains
The federal opportunity zone program creates jobs and improves communities, and the tax benefits for investors remain substantial.
New, lower Form 1099-K threshold prompts cautions, criticisms
The new, lower $600 reporting threshold for reporting credit card and cash payment app transactions will likely lead to problems for taxpayers and payment settlement entities, the Taxpayer Advocate Service warns.
Maximizing the investment interest deduction
In deciding whether to elect to defer investment interest expense, a taxpayer needs to consider marginal tax brackets and the time value of money.
Current developments in taxation of individuals
This semiannual update covers recent federal tax developments involving individuals, highlighting noteworthy IRS guidance and decisions of the Tax Court and other courts, as well as tax changes made by legislation.
Prior business success lends credence to donkey breeder’s profit motive
Taxpayers had a profit motive for their donkey-breeding activity.
Proposed regulations update RMDs for SECURE Act changes
The regulations governing required minimum distributions from retirement plans would be updated to reflect various recent statutory changes under proposed regulations released on Wednesday.
IRS: ‘Limited group’ getting erroneous Letters 6419
The Internal Revenue Service pushes back against suggestions that errors in the letters, which report to taxpayers their advance child tax credit payments for 2021, are widespread.
Taking possession of coins in IRA causes a taxable distribution
A taxpayer has taken a distribution from a self-directed IRA if he or she takes physical possession of IRA assets;
Letter ruling provides clarity on Sec. 1202 definition of brokerage services
In determining whether a corporation was engaged in brokerage services, the IRS ignored definitions of the term in other areas of the tax law and instead resorted solely to the plain meaning of the term as found in a dictionary.
How nonfilers can claim 2021 tax credits
Procedures are available for individuals not otherwise required to file a return to claim three common tax credits.
IRS issues procedures for employee status determinations
Prior guidance on Tax Court jurisdiction over IRS determinations of employee vs. independent contractor status is modified and superseded.
FAQs address calculation and reconciliation of recovery rebate credit
Economic impact payments taxpayers received during the tax year must be netted against a tax credit on 2021 returns.
PRACTICE MANAGEMENT
2026 tax software survey
CPAs rate their return preparation software’s performance during this year’s tax season.
