The IRS issued proposed regulations that permit employees to treat certain expenses paid or incurred for local lodging as deductible business expenses.
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TOPICS
Individuals
2013 HSA Inflation Adjustments Released
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 2013.
Taxes From Postpetition Farm Sale Are Not Dischargeable
The Supreme Court ruled that taxes on gain from the sale of a farm after its owner had filed a Chapter 12 bankruptcy petition were not taxes incurred by the bankruptcy estate.
Deducting Employee MBA Expenses
The deductibility of the cost of an MBA degree under Sec. 162(a) as a trade or business expense for an employee is a complex subject, with several factors to consider.
Contributing to a Child’s IRA
Establishing an IRA in a child’s name can be an effective planning technique for a child with earned income.
Taxing the Transfer of Debts Between Debtors and Creditors
Assumptions and other transfers of debt between corporations and shareholders or between partnerships and partners can often be tax free as part of a contribution, distribution, reorganization, or liquidation. This article analyzes several types of debt transfers and their potential for recognition of gain or loss and income from cancellation of debt.
Supreme Court Upholds Health Care Law
The Supreme Court declared the mandate requiring U.S. citizens and legal residents to maintain minimum essential health coverage to be a permissible exercise of Congress’s taxing powers under the Constitution.
Sample Text for Sec. 83(b) Election Released by IRS
The IRS released sample language for making the Sec. 83(b) election and examples of the amount of income taxpayers would recognize if they made the election.
IRS Suspends Issuing ITINs Without Original Documentation
The IRS will no longer issue individual taxpayer identification numbers unless the applicants provide original documents, such as passports or birth certificates, or certified copies of those documents from the issuing agencies.
Tips and Service Charges Distinguished in Guidance
The IRS issued question-and-answer guidance for distinguishing between tips and service charges for FICA tax and other purposes.
A Road Map of Tax Consequences of Modifying Debt
As a result of the recession, many borrowers are “underwater” on their loans (the property is worth less than the loan balance). This has led to a substantial increase in debt restructuring activity.
Section 530 Relief for Worker Classification Controversies
This article reviews the common law principles and authoritative guidance available to distinguish when workers are employees and the Section 530 safe-harbor provisions.
No Deduction Allowed for Contribution of Easement
The Tax Court held that a taxpayer was not entitled to a charitable deduction for a contribution of a conservation easement on land subject to a mortgage because the mortgagee’s rights in the land had not been subordinated to the rights of the charitable organization that received the easement.
First Circuit Strikes Down Defense of Marriage Act but Stays Tax Remedies
The First Circuit Court of Appeals declared part of the federal Defense of Marriage Act unconstitutional, upholding a Massachusetts federal district court decision.
Prop. Regs. Clarify Meaning of “Substantial Risk of Forfeiture” Under Sec. 83
The IRS issued proposed regulations that would clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83.
Final Regs. Issued on Health Insurance Premium Tax Credits
The IRS issued final regulations governing the Sec. 36B health insurance premium tax credit enacted by 2010’s health care legislation.
Farm Debtors Must Pay Capital Gain Tax in Full, the Supreme Court Holds
The U.S. Supreme Court ruled that farmers who sold farm assets during a bankruptcy reorganization under Chapter 12 of the Bankruptcy Code were liable for the full amount of the capital gains tax that resulted from the sale
Final Regs. Explain Allocation of Deduction for Prepaid Mortgage Insurance Premiums
The IRS issued final regulations governing the allocation of prepaid mortgage insurance premiums for periods after Dec. 31, 2010.
Terms in OIC Agreement Take Meaning From Code, Court Holds
The Second Circuit held that the terms “refund” and “overpayment” in an OIC agreement are specialized tax terms that take their meaning from the Code and are not given their “plain English” meanings, despite the colloquial tone of the agreement.
Guidance Issued on Interest Exceeding Acquisition and Home Equity Indebtedness Limitations
The IRS recently released guidance for allocating excess mortgage interest expense.
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.
