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.
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Individuals
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.
All Legal Same-Sex Marriages to Be Recognized for Tax Purposes, IRS Says
The IRS announced that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.
Final Rules Issued on Individual Health Care Mandate
The IRS released final regulations on the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014.
Amounts on Late-Filed S Corporation Return Were Not Disclosed on Taxpayer’s Return
For purposes of determining whether there had been a substantial understatement of gross income on a taxpayer’s return, the IRS determined that amounts on a Form 1120S filed after the three-year statute of limitation expired, were not considered to be disclosed on a taxpayer’s Form 1040.
Proposed Rules Reset Limitation for Pursuing Equitable Innocent Spouse Relief
The IRS issued proposed regulations under Secs. 6015(f) and 66(c) changing the deadline for taxpayers to request innocent spouse relief from joint liability.
“Private Attorney General” Can Deduct His Lawyers’ Fees as Trade or Business Expenses
A taxpayer who zealously and single-mindedly pursued False Claims Act lawsuits against his former employer was engaged in the trade or business of prosecuting those lawsuits and could deduct legal related expenses business expenses.
IRS Releases Draft Net Investment Income Tax Form
The IRS released a draft of Form 8960, a new dual-purpose form that will be used by individuals and trusts and estates to compute the new 3.8% net investment income tax.
Rev. Proc. 2013-13: A New Option for the Home Office Deduction
The IRS will now allow taxpayers who otherwise qualify for the home office deduction to use a simplified safe-harbor method that reduces the recordkeeping generally involved under the actual-expense method.
Planning for the “Parallel Universe” of the Net Investment Income Tax
This article examines how to determine the new surtax on net investment income that, like alternative minimum taxable income, effectively creates another tax base in addition to taxable income.
Final Regs. on Indoor Tanning Tax
The IRS issued final regulations on the 10% excise tax that has been in effect for amounts paid for indoor tanning services since July 1, 2010.
Technology for Tax Compliance
This column suggests ideas for helping tax students learn about technology used in the accounting profession, as well as some of the ethical concerns raised by its use.
Final Regs. Clarify 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 under Sec. 274(n).
Professional Poker Player Goes Bust in Tax Court
A professional poker player who was also a civil and geotechnical engineer and a laundromat owner lost in Tax Court.
Totalization Agreements: Taking Exception to Social Security
A totalization agreement is intended to eliminate dual social taxation and to provide additional benefit protection for workers who have worked in both the United States and another country.
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.
