The IRS issued an update and new guidance regarding the use of the 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 and reinstated the high-low substantiation method.
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TOPICS
Individuals
Short Sales of Investment Real Property
This item addresses a situation that often arises in today’s economic climate: a short sale of real property held for investment, not for rental, secured by a recourse note.
The Part Sale, Part Gift Trap for Nearly Worthless Securities
This item discusses a trap for the unwary when the part gift, part sale rule applies.
President Signs Government Contractor Withholding Repeal, Veterans Job Credits
The president signed into law the Three Percent Withholding Repeal and Job Creation Act.
Senate Passes Amended Bill Repealing 3% Withholding on Government Contracts
The U.S. Senate on November 10 approved a bill to repeal 3% income tax withholding on payments to vendors by federal, state and local governments.
Revisiting the New Markets Tax Credit
Treasury has proposed revisions to the new market tax credit regulations to make the program more attractive to investors in non–real estate businesses in low-income communities.
International Students and the American Opportunity Tax Credit
The tax compliance of international students is now a more critical issue because of the partially refundable nature of the American opportunity tax credit.
IRS Issues Guidance on Tax Treatment of Business Cell Phones
The IRS issued guidance that discusses the treatment of employer-provided cell phones as an excludible fringe benefit.
Creating Slides for Effective Presentations
This column reviews four books that address communication and the use of visual aids in professional presentations.
Keeping Alimony from Being Reclassified as Nondeductible Payments
This column discusses the tax implications of alimony or spousal support, with a focus on the specific criteria that payments must meet to qualify as alimony.
Inflation Adjustments Made to Many Tax Items for 2012
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.
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.
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.
