Individual Income Taxation

TOPICS

January 20, 2021

IRS explains extended payroll tax due dates

The IRS issued updated procedures for the deferred employee portion of employment tax payments, which were further extended from April 30, 2021, to Dec. 31, 2021, by year-end legislation.

January 19, 2021

Some individual taxpayers get relief from underpayment penalty

The IRS granted individual taxpayers a waiver from the penalty for underestimated tax due solely to the amendment to Sec. 461(l)(1)(B) in the CARES Act repealing the excess business loss limitations for years before 2021.

January 15, 2021

Tax filing season to start Feb. 12, IRS announces

The IRS announced that it will start accepting 2020 tax returns on Feb. 12, a later date than usual. The delay stems from programming changes needed to account for year-end tax legislation.

January 12, 2021

Final regs. govern deductibility of fines and penalties

The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.

January 6, 2021

Final regs. address certain Sec. 163(j) rules

The IRS issued final regulations containing rules on the Sec. 163(j) interest expense limitation, including rules for specific passthrough entities and regulated investment companies.

January 5, 2021

Guidance permits change in vehicle use valuation during pandemic

In response to the COVID-19 pandemic, the IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method for determining the value of an employee’s personal use of a vehicle during the pandemic.

January 1, 2021

Taxpayer had unfettered control over SEP-IRA distribution

A distribution from a SEP-IRA to an LLC owned by the taxpayer is includible in the taxpayer’s gross income.

January 1, 2021

Recent changes to the rehabilitation tax credit

This item discusses IRS regulations on rehabilitation credits for historic buildings.

January 1, 2021

The impact of filing status on student loan repayment plans

This article discusses income-based plans and how married couples with student loan debt may minimize their current loan payments by filing separately instead of jointly.

January 1, 2021

How to report deferred employee payroll taxes

The IRS issued guidance to employers and employees on reporting deferred Social Security tax on Form W-2 under the Presidential Memorandum authorizing the deferral.

January 1, 2021

Taxpayer Relief Initiative to help taxpayers with tax debt during pandemic

The IRS said it was revising its procedures to help taxpayers who cannot pay their taxes because of the pandemic. The new program is called the Taxpayer Relief Initiative.

January 1, 2021

Gambler is big winner in Tax Court

The Cohan rule is used to determine the losses of a
compulsive gambler.

January 1, 2021

Claiming the recovery rebate credit on 2020 individual returns

Tax preparers can help taxpayers claim the recovery rebate on 2020 returns.

January 1, 2021

Donations to charities in exchange for SALT credits

The IRS provided guidance regarding limitations on the deductibility of charitable contributions made in exchange for state and local tax credits.

December 27, 2020

Many tax provisions appear in year-end coronavirus relief bill

The year-end coronavirus relief and spending bill passed by Congress includes many tax provisions, including pandemic-related relief, extensions of expired provisions, and a large number of miscellaneous items, including temporary 100% deductibility for business meals.

December 22, 2020