Real property foreclosures can produce various tax consequences depending on whether the debt is recourse or nonrecourse.
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TOPICS
Individuals
IRS litigators not bound by innocent-spouse determination
The IRS Cincinnati Centralized Innocent Spouse Operation’s opinion that a taxpayer was entitled to relief was not binding on the Office of Chief Counsel as a ‘final determination’ of liability.
Foreign earned income exclusion: Pandemic-related relief
The IRS provides relief for taxpayers who would have qualified for the foreign earned income exclusion in 2019 and 2020 but for COVID-19.
Regs. proposed for present value of estate deductions
Administrative expenses and claims against estates allowable under Sec. 2053 beyond a three-year grace period would be discounted for current deduction, under proposed rules issued by the IRS.
IRS extends e-filing to more 1040-series amended returns
Nonresident alien amended returns and those for Puerto Rico residents are added; superseding returns can be designated.
Midyear IRS mileage rate increase follows precedent, recent pleas
Last week’s bump was the third midyear increase in the past 14 years, and it came after members of Congress wrote to the IRS about rising fuel prices.
Standard mileage rate to increase for last half of 2022
Acknowledging recent sharp increases in gasoline prices, the IRS announced a rare midyear increase in the standard mileage rate, starting July 1.
IRS warns of impostors in ‘Dirty Dozen’
The IRS’s annual series continues with caveats about fake communications intended to bilk taxpayers out of their tax and financial information.
‘OIC mills’ and ‘ghost’ preparers in ‘Dirty Dozen’
Sketchy operations target tax debtors for offers in compromise, and preparers who remain anonymous on returns generally have something to hide, the IRS says in its ongoing series.
More ‘Dirty Dozen’: Tax refund theft and fake charity appeals
The IRS continued its annual series, highlighting threats to ordinary taxpayers from would-be thieves.
Abusive CRATs and Maltese IRAs among ‘Dirty Dozen’ tax scams
The first installment of the Internal Revenue Service’s annual feature focuses on four abusive transactions and arrangements.
‘Swag bags’ are back: Influencers and noncash compensation
This item discusses whether and when ‘freebies’ or discounts result in taxable income to the influencer and possible limitations on deductions for the related expenses.
Dispute remains over whether couple sold house due to poor health
Taxpayer’s health may have been the reason for sale of personal residence, but the issue may not be material to whether taxpayers are entitled to an exclusion of gain on the sale.
IRS mostly correct on recovery rebate credits, TIGTA says
The IRS administered the recovery rebate credit correctly for all but 0.7% of returns in the 2021 filing season, the Treasury Inspector General for Tax Administration found.
Procedures for Puerto Rico residents to claim a 2021 child tax credit
The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.
Employing a VITA program to prepare students for professional practice
Having students prepare tax returns at a VITA center or university-run tax preparation center effectively increases knowledge in taxation and develops key skills accounting students often lack.
SALT cap challenge is denied Supreme Court review
The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.
Puerto Rico residents: Scope of income tax exemption for capital gains
The tax advantages available in Puerto Rico have recently captured the interest of both taxpayers and the IRS.
Cryptoassets: How should proof-of-stake rewards be taxed?
In light of the lack of guidance from the IRS and Treasury, the case for deferred recognition of income for staking rewards has recently gained traction.
Billionaire minimum tax could pose difficulties
The proposal in President Joe Biden’s fiscal 2023 budget to impose a 20% minimum tax on certain high-wealth individuals is seen as likely to raise thorny issues and likely even constitutional challenges.
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.
