Based on recent Chief Counsel Advice, some taxpayers may need to reevaluate whether they will meet the definition of real estate professional. The results of this analysis may have a significant impact on a taxpayer’s treatment of the income from rental real estate activities under Secs. 469 and 1411.
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Individuals
The VITA Program: Vital to Communities, Campuses, Students, and Employers
This column articulates the numerous benefits students, universities, employers, and communities can gain from the VITA program and provides tips on how to start a program, how to recruit and train volunteers, and how to best ensure a successful experience for all constituents.
Tax Home Requires Incurring Expenses to Maintain a Home, Tax Court Holds
A long-haul truck driver who spent most of his time on the road was not allowed to deduct his unreimbursed travel expenses because he did not have a tax home and therefore did not incur the expenses while he was away from home.
Proposed Slot Machine Safe Harbor Would Allow Gains and Losses to Be Netted
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 daylong play sessions.
ABLE Accounts Deemed to Comply With IRS Guidance
The IRS announced 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.
CHIP Buy-in Programs May Qualify as Minimum Essential Coverage
An individual who may enroll in a CHIP buy-in program that has been recognized as minimum essential coverage by HHS will be treated as eligible for minimum essential coverage under the program for purposes of the premium tax credit only for the period the individual is enrolled.
Millions of Taxpayer Phone Calls Went Unanswered by IRS This Tax Season
The number of taxpayer phone calls answered by the IRS dropped significantly during this tax season and call wait times were up.
IRS Grants Penalty Relief to Taxpayers Who Received Incorrect Health Care Forms
To ease the filing burden for taxpayers who received late or incorrect Forms 1095-A, the IRS announced that it will provide penalty relief for taxpayers.
How to Claim the Residential Energy-Efficient Property Credit for Geothermal Heat Pump Property
A taxpayer who meets certain requirements can claim the credit for expenses associated with geothermal heat pump property.
Personal Goodwill: Alive and Well Indeed!
Recent Tax Court decisions illustrate that with the right facts, the sale of personal goodwill, as an asset separate from corporate-owned goodwill, should withstand challenge.
The Exclusion for Meals and Lodging
This article explains the general exclusion under Sec. 119(a) and the other limited exclusions for meals and lodging received from an employer and addresses whether a partnership may treat a partner as an employee for purposes of the Sec. 119(a) exclusion.
Payments to Egg Donor Not Excludable From Income
The Tax Court ruled that a woman who received payments for undergoing the procedures necessary to donate her eggs could not exclude the payments from gross income as damages for personal injuries or physical sickness under Sec. 104(a)(2).
IRS Will Waive Penalties for Underpayments Related to the Premium Tax Credit
IRS will provide automatic penalty relief for premium tax credit underpayments.
Taxpayer Was a Bona Fide Resident of U.S. Virgin Islands
Taxpayer who had filed tax returns with the U.S. VIBIR was a bona fide resident of the U.S. Virgin Islands, and the statute of limitation on assessment had expired on the U.S. returns.
President Proposes Tax Relief for the Middle Class in State of the Union
The president announced that he will propose tax increases for higher-income individuals and provide tax relief for middle-class taxpayers.
Sec. 529A ABLE Accounts May Be Set up Before the IRS Issues Guidance
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.
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.
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.
Late-Filed Form 1040 Not a Tax Return for Bankruptcy Discharge Exception
The Tenth Circuit, in a case of first impression, held that an untimely Form 1040 filed after the IRS has assessed a taxpayer’s tax liability, is not a tax return for purposes of the exception to discharge of a tax debt in bankruptcy.
Recent Developments in Individual Taxation
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
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.
