The IRS released its annual revenue procedure making inflation adjustments to the income tax tables and many tax credits and other items for tax years beginning in 2012.
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TOPICS
Individuals
Shareholder Loan Documentation
This item explores the importance of paying attention to details and following document terms for shareholder loans.
Relief for Late Election to Treat All Real Estate Rental Interests as One Activity
This item reviews recent IRS guidance on how certain taxpayers can make a late election to treat all interests in rental real estate as a single rental real estate activity.
Forgivable Loans in Employment Agreements
The item examines the use of forgivable loans issued at the inception of employment, where the employee receives an upfront payment of cash and the related income arising from the forgiveness of such debt is recognized over the life of the obligation provided in the agreement.
Exchange of Shares in ISO Exercise
Under Regs. Sec. 1.6045-1(d)(2), which requires that broker statements disclose securities’ adjusted basis beginning January 1, 2011, basis tracking of ISOs is more relevant than ever.
Taxpayer Entitled to Charitable Deduction for Gifts of LLC Units
The Ninth Circuit held that a taxpayer was entitled to a charitable deduction for gifts of LLC units to two charitable foundations that were transferred to the foundations when the IRS increased the value of the LLC units on audit.
High-Low Method for Substantiating Travel Expenses Discontinued
The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home (Announcement 2011-42)
IRS Gives Up on Two-Year Innocent Spouse Equitable Relief Limitation
After winning appeals in three federal circuit courts of its two-year limit for requesting equitable innocent spouse relief, the IRS said on July 25 it will no longer observe that deadline.
Final Regs. Govern Election to Deduct Business Start-up Expenses
The IRS issued final regulations (T.D. 9542) governing elections by individual taxpayers, corporations, and partnerships to deduct start-up expenses or organizational expenditures.
IRS Updates, Clarifies Travel Allowances, Reinstates High-Low Method
The IRS issued an update and new guidance for use of a federal per diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals and incidental costs paid or incurred for business-related travel away from home.
Guidance Issued on Tax Treatment of Business Cell Phones
The IRS issued a notice on September 14 providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property.
Tax Court Determines Character, Source of Golfer’s Worldwide Endorsement Income
The Tax Court recently decided Goosen, a case with potentially far-reaching implications for foreign athletes who perform within the United States. The decision has become the leading authority for determining both the character and the source of the endorsement income earned by international athletes.
Deduction Allowed for Payments to Long-Term Caregivers
The Tax Court held that payments made to an elderly woman’s caregivers for personal care that she required due to her diminished capacity qualified as long-term care services and were therefore deductible.
Election to Deduct Business Startup Expenses Gets Final Rules
The IRS issued final regulations governing elections by individual taxpayers, corporations and partnerships to deduct startup expenses or organizational expenditures.
Health Care Premium Credit Rules Proposed
The IRS released proposed regulations implementing the health insurance premium tax credit, which is effective starting in 2014.
Diversifying Concentrated Positions in the Most Tax-Efficient Manner
This item explores techniques that may be used to the advantage of investors wishing to diversify concentrated securities positions in a tax-efficient manner.
Mitigating the Results of a Failure to Carry Back an NOL
This item discusses how a taxpayer, when making a decision about when to use a net operating loss (NOL), can ensure that it is carried back and/or forward properly.
No Reasonable Cause for $3.4 Million Omission from Income
The Tax Court held that a taxpayer did not have reasonable cause for omitting from income $3.4 million from the termination of a swap transaction that was reported to him on a Form 1099.
Two-Year Innocent Spouse Limitation Period Upheld Again
The Fourth Circuit overturned a Tax Court decision and upheld a Treasury regulation that sets a two-year statute of limitation on claims for innocent spouse relief, marking the third time the Tax Court has been overruled on this issue by a higher court.
Charitable Deduction Allowed for Expenses of Cat Rescue Organization Volunteer
The Tax Court allowed a taxpayer to take a charitable deduction for expenses she incurred while taking care of cats for a charitable organization dedicated to cat neutering and rescue because her expenses were incident to services provided to a charitable organization.
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.
