The IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2013 and 2014.
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TOPICS
Individuals
Heightened Emphasis on Worker Classification
Worker classification has been a major concern for many years. While it is clear that government agencies recognize that worker misclassification is a significant problem, how to classify workers remains unclear.
Final and Proposed Regs. Issued on 3.8% Net Investment Income Tax
The IRS issued final and proposed regulations giving guidance on the application and computation of the 3.8% net investment income tax imposed by Sec. 1411.
Final Rules Released on 0.9% Medicare Surtax
The IRS issued final regulations governing the 0.9% Medicare surtax. The regulations contain guidance for employers and individuals on the implementation of the tax.
Nonresident Alien Gamblers Get Similar Treatment as U.S. Gamblers
The D.C. Circuit held that nonresident aliens should measure their gambling gains and losses under the “per-session” approach, the same method that U.S. citizens follow, instead of a "per-bet" approach.
DOMA Decision and IRS Guidance Change Tax Landscape for Same-Sex Spouses
The Supreme Court decision requiring the federal government to recognize as married same-sex couples who are legally married under state law results in significant changes to a broad range of federal tax laws for same-sex couples.
IRS Releases Final Regs. on Sec. 274 Reimbursement Arrangements
Final regulations clarify the treatment of reimbursement arrangements for the 50% meals and entertainment deduction under Sec. 274.
IRS Will Recognize All Legal Same-Sex Marriages
The Treasury Department and IRS announced that “same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.”
Integrating Tax Ethics Into the First Tax Course
Because students generally are in the early stages of their professional development, they easily can be exposed to professional ethics issues and preferred professional behaviors in common ethical situations as they learn more about tax technical content and the practical implementation of those rules.
Additional 0.9% Medicare Tax on Earned Income
Beginning in 2013, individuals must pay an additional 0.9% Medicare tax on earned income above certain thresholds.
Individual Health Care Mandate Rules Finalized
The IRS released final regulations on the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014.
IRS Releases Inflation Adjustments for 2014
The IRS issued the annual inflation adjustments for 2014 for more than 40 tax provisions and the tax tables for 2014.
Government Shutdown, Debt Ceiling Deal Includes One Tax Provision
Wednesday’s deal to fund the federal government through Jan. 15 and to extend the federal government’s borrowing authority through Feb. 7 in the end contained only one tax provision, making a minor change to 2010’s health care legislation.
Qualified Small Business Stock: An Opportunity for Tech Startups
The existence of convertible debt, incentive stock options, warrants, and preferred stock, along with the need for additional capital, creates opportunities for tech companies to issue additional qualified small business stock in 2013.
Gambling Gains for Nonresidents Now the Same as for U.S. Residents
A decision by the D.C. Circuit puts nonresident aliens’ gambling gains on a closer footing to those of U.S. residents.
Excluding Part of the Gain From the Sale of a Residence
A portion of the gain from the sale of a principal residence can be excluded when the taxpayer fails to meet the requirements for full exclusion of gain when the primary reason for selling or exchanging the principal residence was a change in place of employment, health, or unforeseen circumstances.
IRS Clarifies Who Is Subject to 50% Limit on Meal and Entertainment Expenses
The IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses.
Taxpayer in Trade or Business of Being a “Private Attorney General”
A district court held that a taxpayer who prosecuted an action against his former employer for false claims was was entitled to deduct his legal fees from the suit as ordinary and necessary business expenses.
Draft Net Investment Income Tax Form Posted
In August, the IRS released a draft dual-purpose form that will be used by individuals and trusts and estates to compute and report the new 3.8% net investment income tax.
IRS Updates Special Per Diem Rates for 2013–2014 Travel Expenses
The IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2013 and 2014.
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.
