The Tax Court held the IRS could not reclassify the taxpayer’s income from the rental of cellphone towers and the land they were situated on to his wholly owned S corporation as nonpassive income under the self-rental rule.
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TOPICS
Individuals
Tax Treatment When Employees Surrender Paid Time Off to Benefit Others
There are various types of PTO donation and leave-sharing programs, not all of which are disaster-related. The tax treatment to the donating employee differs based on the type of program.
Individual Health Care Mandate Rules Under Sec. 5000A Proposed
The IRS released proposed rules for 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.
Changes to Rules on Failure to File Gain Recognition Agreements Proposed
The IRS issued proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements when they transfer certain property to foreign corporations in nonrecognition transactions
IRS Provides Penalty Relief for Farmers Hit by Delayed Start of Tax Season
The IRS announced that it will provide estimated tax penalty relief for farmers and fishermen who are not able to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns.
IRS Corrects 2013 Tax Tables
The IRS announced corrections to two of the 2013 tax tables it issued on Jan. 11.
Simplified Home-Office Deduction Safe Harbor Announced
The IRS gave taxpayers an optional safe-harbor method to calculate the amount of the deduction for expenses for business use of a residence during the tax year under Sec. 280A.
Tax Tables, Other Inflation Adjustments, Issued for 2013
The IRS issued inflation-adjusted items for 2013 as well as the new income tax rate tables now in effect as a result of the American Taxpayer Relief Act.
Regulations Issued on Treasury Inflation-Protected Securities Issued at a Premium
The IRS issued regulations on the tax treatment of TIPS that have more than a de minimis amount of premium and on debt instruments with bond premium carryforward in the holder’s final accrual period.
Start of Tax Season Delayed Until Jan. 30; Later for Some Taxpayers
The IRS announced that it plans to open the 2013 filing season and begin processing many individual income tax returns on Jan. 30
IRS Issues Withholding Tables for American Taxpayer Relief Act
The IRS issued newly revised percentage withholding tables to implement the rates that will be in effect this year now that the American Taxpayer Relief Act has been enacted.
Corporation Sole Cannot Shelter Pastor From Tax Trouble
A pastor’s use of a “corporation sole” structure to avoid “government interference” and a vow of poverty were not enough to shelter his income from federal tax, the Tax Court held in a recent decision.
Excluding and Rolling Over Gain on Disposition of Qualified Small Business Stock
Sec. 1202 allows noncorporate taxpayers to exclude from gross income 50% of any gain from the sale or exchange of qualified small business stock acquired before Feb. 18, 2009, or after Dec. 31, 2011, and held for more than five years.
IRS Provides Relief for Hurricane Sandy Victims
In response to the extraordinary damage caused by Hurricane Sandy and the extreme need for relief, the IRS announced various tax relief measures for individuals and businesses affected by Hurricane Sandy in Connecticut, New Jersey, New York, and Rhode Island.
IRS Illustrates Employee Reimbursement Plans
The IRS has described four situations where employers have recharacterized taxable wages as nontaxable business expense reimbursements and has ruled on whether these arrangements satisfy the business connection requirement of the accountable plan rules.
State Law Property Classifications Do Not Control “Like Kind” Determination
The IRS ruled that state law property classification does not control whether exchanged properties are considered of “like kind” for purposes of Sec. 1031.
Regs. Issued on Integrated Hedging Transactions of Qualifying Debt
The IRS published regulations addressing certain integrated transactions that involve a foreign currency denominated debt instrument and multiple associated hedging transactions.
IRS Clarifies When Debt Instruments Are Publicly Traded
The IRS issued final regulations clarifying the circumstances in which property is traded on an established market (i.e., publicly traded) for purposes of determining the issue price of a debt instrument.
Mandatory Language for Consents to Disclose, Use Taxpayer Information Modified
The IRS has provided guidance to tax return preparers about the format and content of taxpayer consents to disclose and consents to use tax return information and modified the mandatory language required on each taxpayer consent.
IRS Issues Proposed Regs. on 3.8% Net Investment Income Tax
The IRS released proposed regulations governing the 3.8% net investment income tax imposed under Sec. 1411.
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.
