The IRS issued interim guidance September 29 on the child adoption credit and income exclusion for employer reimbursements of adoption expenses, as expanded by the Patient Protection and Affordable Care Act.
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TOPICS
Individuals
Treasury Announces Low-Cost Financial Account Program for Taxpayers
Treasury announced the launch of a pilot program to provide taxpayers with access to low-cost financial accounts.
Deducting Success-Based Financial Advisory Fees
The deduction of success-based financial advisory fees related to business transactions has been, and continues to be, an area of significant taxpayer uncertainty.
Tax Treatment of Expenses Incurred by Individuals Temporarily Out of Work
This article examines the tax treatment of expenses incurred by individuals who are temporarily out of work.
Closing Date Deadline for Homebuyer Credit Extended to September 30
The Homebuyer Assistance and Improvement Act extends the closing date deadline to qualify for the first-time homebuyer credit from June 30, 2010, to September 30, 2010.
Taxpayer Denied Exclusion for Gain on the Sale of a Principal Residence
The Tax Court held that taxpayers who demolished a home they had lived in for more than two years, built a new home on the same lot, and then sold the new home without ever living in it were not entitled to exclude the gain from the sale from income under Sec. 121.
Rules Issued for Income Deferral of Canceled Debt
The IRS issued temporary and proposed regulations relating to taxpayer elections to defer recognition of cancellation of debt (COD) income.
Dependency Exemption Issues for College Students
Parents and tax professionals can no longer assume that a college student will remain a dependent of the parent until he or she graduates. With the variety of funding sources students use to pay for the ever-increasing cost of higher education, many are likely to provide over one-half of their support at some point during their college years.
Regs. Limiting Period for Filing Innocent Spouse Claim Held Valid
Reversing the Tax Court, the Seventh Circuit held that the two-year limitation period for filing an equitable innocent spouse claim under Sec. 6015(f) in Regs. Sec. 1.6015-5(b)(1) was valid.
Case Studies for Book-Tax Differences in the Classroom
The authors discuss how to most effectively cover book-tax differences in financial accounting and tax courses and how to prepare accounting graduates for this type of work in the profession.
IRS Issues Regs. on New Indoor Tanning Tax
On June 11, the IRS issued final, temporary, and proposed regulations to provide guidance on the new 10% indoor tanning services excise tax (T.D. 9486; REG-112841-10).
Appeals Court Overturns Taxpayer Win in Tax Shelter Case
The Tenth Circuit held that a taxpayer’s investment in a “son of boss” tax shelter lacked economic substance and therefore did not generate deductible losses, reversing a taxpayer win on the issue in which a district court had allowed the taxpayer to deduct losses from the investment.
Closing Date Deadline for Homebuyer Credit Extended to Sept. 30
The Homebuyer Assistance and Improvement Act of 2010 extends the closing date deadline to qualify for the first-time homebuyer credit under Sec. 36 to September 30, 2010.
Tax Benefits for Education
An array of tax benefits are available to taxpayers, including income exclusions for educational assistance, scholarships, and distributions from qualified tuition plans and educational IRAs, as well as credits for tuition and certain education-related expenses and a deduction for tuition payments.
Guidance on Health Coverage for Adult Dependents
An IRS notice and interim final rules provide guidance on the tax treatment of health coverage for children who have not yet turned 27.
IRS Issues Regulations on New Indoor Tanning Tax
The IRS issued final, temporary and proposed regulations to provide guidance on the new 10% indoor tanning services excise tax
A Little-Known Tax Benefit: The Gift of Inventory
Tax incentives are available for contributions of inventory for the care of the ill, needy, or infants, but many taxpayers may be unaware of them. This item outlines the current rules for an increased deduction and analyzes events leading up to the current rules.
Overpayment Interest Accrues on First-Time Homebuyer Credit
The Office of Chief Counsel (OCC) advised that the Sec. 6111 general interest rules applicable to overpayments of tax apply to the first-time homebuyer credit.
Final Regs. Govern Deductibility of State Legislators’ Deemed Living Expenses
The IRS and Treasury released final regulations on the availability of a special deduction for deemed living expenses of state legislators (T.D. 9481).
Energy Star Rebates Reduce Basis
The Office of Chief Counsel (OCC) advised that a taxpayer should treat a rebate for purchasing an Energy Star product as a reduction of the basis of the product purchased and not as income.
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.
