Determining proper classification of workers, either as independent contractors or employees, can be subjective and a challenge for employers.
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Individuals
Nine Factors That Determine Whether an Activity Is a Hobby
Under the hobby loss rules, the deductible expenses of a hobby are limited to the amount of income it generates and are further subject to a floor of 2% of AGI as a miscellaneous itemized deduction.
Proposed Rules Address Minimum Value of Health Coverage for Premium Tax Credits
The IRS issued proposed regulations for determining whether an eligible employer-sponsored health plan provides minimum value for purposes of the Sec. 36B health insurance premium tax credit.
Innocent-Spouse Defense Against Assessments on a Joint Return
Sec. 6015 provides two potential sources of relief to spouses and former spouses facing joint and several liability problems.
IRS Issues Guidance on Minimum Essential Health Coverage, Shared-Responsibility Penalty
The IRS issued two notices defining minimum essential coverage for purposes of the Sec. 36B premium tax credit and providing relief from the shared-responsibility penalty under Sec. 5000A for individuals covered by non-calendar year plans.
Supreme Court Strikes Down Defense of Marriage Act in Estate Tax Case
The Supreme Court held that the Defense of Marriage Act (DOMA) is unconstitutional because it violates the Fifth Amendment’s Due Process Clause
AICPA Recommends Changes to Net Investment Income Tax
The AICPA submitted comments to the IRS recommending many changes to the proposed regulations on the new net investment income tax.
Oral Surgeon Cannot Deduct Expenses for Traveling Between Home and Job
The Tax Court upheld IRS-assessed deficiencies caused by the disallowance of a number of travel expenses an oral surgeon deducted on his Schedule C and its imposition of a negligence penalty under Sec. 6662(a).
Indoor Tanning Tax Final Regulations Issued
The IRS issued final regulations on the 10% excise tax on amounts paid for indoor tanning services.
Sec. 108(e)(2) and Debt That Would Give Rise to Basis
A taxpayer is not required to recognize taxable income for the discharge of a liability when payment of the liability would have given rise to a tax deduction.
When Net Means Gross, and Other Things Hedge Funds Should Know for 2013
Investors in hedge funds may be subject to higher federal tax rates and the new 3.8% net investment income tax (also known as the unearned income Medicare contribution tax) in 2013.
Promoting Fictitious Bonds for Tax Payments Leads to Conviction for “Sovereign Citizen”
A proponent of the “sovereign citizens” movement has been convicted of conspiracy to defraud the United States through a series of seminars in which attendees were taught to pay their federal income taxes by filing fictitious bonds.
Oklahoma Tornado Victims Get Tax Filing and Payment Extensions
The IRS announced relief from filing and payment deadlines for victims of Monday’s destructive tornadoes in Oklahoma.
HSA Inflation Adjustments Issued for 2014
The IRS issued the inflation-adjusted figures for the annual contribution limitation for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2014.
Making the Connection Between Tax and Strategic Business Decision-Making
Cross-discipline approaches can be used to expand students’ ability to apply knowledge learned in one area of accounting to other areas.
Chapter 13: Tax Considerations
Since the bankruptcy law was amended in 2005, many individuals have been channeled to Chapter 13, under which a debtor typically pays off a greater amount of debt through a court-approved repayment plan.
Interest on Residential Property Debt Not Deductible as Investment Interest
The Tax Court held that taxpayers who purchased a residence with the intention to treat part of the tract as investment property could not deduct any of the interest on indebtedness as investment interest.
New Sec. 1411 Brings Difficulty Defining Real Estate “Trade or Business”
The proposed regulations under Sec. 1411 do not provide a definition of “trade or business” for taxpayers engaged in rental real estate activities and thus potentially subject to the tax on net investment income on income from these activities.
Sec. 1202: Small Business Stock Capital Gains Exclusion
Sec. 1202 provides an opportunity for investors to make investments that could qualify for a full federal income tax exemption on a subsequent sale.
Tithing Is Not Necessary Expense
The Tax Court upheld the IRS’s determination that a taxpayer’s tithing payments to his church were conditional expenses for purposes of determining the amount of the taxpayer’s monthly payments under a partial payment installment agreement.
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.
