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.
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TOPICS
Individuals
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 Court in the Classroom
This column describes mock Tax Court: An exercise that has assisted students in improving their communication and analytical skills and has proven instrumental in helping them prepare for their professional careers in accounting.
Planning for the Unearned Income Medicare Contribution Tax
The unearned income Medicare contribution tax is scheduled to come to life at the end of next year, and it may have a significant impact on some taxpayers.
Practitioners, Policymakers Welcome IRS Change on Innocent Spouse Relief
Tax practitioners, legislators, and taxpayer advocates said the IRS’ announcement that it would no longer require taxpayer requests for innocent spouse equitable relief under Sec. 6015(f) to be made within two years of the beginning of collection activity was a long overdue change.
IRS Relents on Two-Year Limit on Innocent Spouse Equitable Relief
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.
IRS Discontinues High-Low Method for Substantiating Travel Expenses
The IRS announced that it is discontinuing the high-low method for substantiating lodging, meal and incidental expenses incurred in traveling away from home.
Tax Court Allows Deduction for Payment 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.
Basic Bankruptcy Treatment of Income Tax for Individuals
This item attempts to clarify whether income taxes can be dismissed in bankruptcy and discusses certain aspects of bankruptcy and other options that CPAs need to be aware of in order to best represent their individual clients.
Planning for the New 3.8% Medicare Tax on Unearned Income
Effective in 2013, the Health Care and Education Reconciliation Act of 2010 will subject some individuals to a 3.8% Medicare contribution tax on unearned income. This article discusses strategies taxpayers can use to minimize the tax.
IRS Addresses Tax Treatment of Tax-Free Exchanges of Annuities
The IRS has given taxpayers guidance on the tax treatment of exchanges of annuity contracts under Secs. 72 and 1035.
IRS Raises Standard Mileage Rate for Second Half of 2011
In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1.
Fourth Circuit Upholds Two-Year Innocent Spouse Limitation Period
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.
Foreign Disregarded Entities May Face U.S. FICA Tax Issue
This item shows how restructuring international businesses to operate through entities disregarded for U.S. federal income tax purposes may also affect the employment tax treatment of the organization’s individual employees.
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.
