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.”
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TOPICS
Individuals
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.
Streamlined Procedures for Post-Windsor FICA Refunds Are Released
The IRS announced the procedures employers should follow for filing refund claims for overpaid FICA and income taxes paid on employer-provided benefits for same-sex spouses that, because of the Supreme Court’s Windsor decision, are now tax free.
New Procedures for Equitable Innocent Spouse Relief
The IRS provided rules under which taxpayers can obtain equitable innocent spouse relief from joint liability under Sec. 66(c) or 6015(f).
Individual Tax Report
This article covers recent developments in individual taxation. The items are arranged in Code section order.
AICPA: Net Investment Income Tax Needs Fixing
The AICPA, in a letter from Jeffrey Porter, chair of the AICPA Tax Executive Committee, submitted comments to the IRS, recommending many changes to the proposed regulations on the new net investment income tax.
Taxpayer Not Entitled to Innocent Spouse Relief
The Tax Court held that a taxpayer was not entitled to innocent spouse relief for an understatement of tax that was attributable to Social Security income of her husband that the couple did not report on their joint return.
Defense of Marriage Act Struck Down by Supreme Court
The Supreme Court held that a key provision of the Defense of Marriage Act is unconstitutional because it violates the Fifth Amendment’s Due Process Clause by denying equal protection to same-sex couples who are lawfully married in their states.
Provision of Services by Corporation to Shareholder Not a Constructive Dividend
The Tax Court held that the sole shareholder of a corporation did not receive a constructive dividend when the corporation provided construction services to the shareholder at cost.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
