Passthrough owners that do not materially participate in a trade or business may find their tax credits suspended.
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Credits
Final regs. address premium tax credit issues
The IRS issued final regulations that govern the relief available for victims of domestic abuse or abandonment from the requirement that married taxpayers must file joint income tax returns to qualify for the Sec. 36B premium tax credit.
A PATH to savings
This article examines the PATH act provisions and other developments favorable for taxpayers.
Interim guidance on small business research tax credit allows amended returns to claim credit for 2016
Eligible small businesses can apply a portion of their R&D credit against their payroll tax liability under a new provision enacted in 2015.
TIGTA issues reports on taxpayers who received advance premium tax credits
Health care exchanges failed to properly verify the identity and eligibility of all individuals who received the advance premium tax credit, the Treasury Inspector General for Tax Administration reported.
IRS issues reasonable internal-use software regulations for the research tax credit
The final regulations could provide opportunities for companies and industries that previously did not include expenditures for software developed primarily for their own internal use.
IRS rules defining dependents and EITC qualification are to be amended
The IRS proposed changing its position on when taxpayers may qualify as childless for purposes of the Sec. 32 earned income tax credit.
How small businesses can apply the research credit to payroll taxes
Eligible small businesses can apply a portion of their research and development credit against their payroll tax liability, starting with 2016 tax years, under a new provision enacted in 2015.
Maximizing the EITC for deployed troops
This article discusses why deployed troops who are in harm’s way are getting less benefit from the EITC, how it affects their households, and a simple solution to the problem.
Some individuals mistakenly received the advance premium tax credit
Health care exchanges failed to properly verify the identity and eligibility of all individuals who received the advance premium tax credit, the Treasury Inspector General for Tax Administration reported.
Current Developments in Taxation of Individuals
A number of recent significant developments affect
taxation of individuals.
Final R&D Internal-Use Software Regulations Provide More Certainty
Regulations settle much of the uncertainty for determining when software is developed for internal use.
Accelerating AMT Credits in Lieu of Bonus Depreciation
Changes provided in the PATH Act allow a much larger pool of potential credits than had been previously available.
IRS Proposes Changes to Rules for Dependents
The IRS proposed changes to various rules affecting dependents, including changing its position on when taxpayers count as “childless” for purposes of the earned income tax credit.
Some Internal-Use Software Qualifies for Research and Development Credit
Taxpayers that develop software for their own internal use will be able to claim a credit for research and development expenditures in some cases.
Final Rules Allow Credit for Development of Internal-Use Software in Some Cases
Software a taxpayer develops for its own general and administrative internal use can qualify for the research and development credit under regulations finalized by the IRS.
R&D Tax Credit Changes Benefit Small Businesses
The PATH Act of 2015 included important changes to the R&D credit.
IRS Proposes Rules for Reporting and Claiming Tuition Expenses
The IRS is proposing to amend the rules governing eligibility to claim a deduction or credit for eligible education expenses to conform them to recent legislative changes.
Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Practical Documentation of QRAs for the R&D Tax Credit
In the absence of records specifically created to document the research tax credit, taxpayers
often have to rely on estimates and an assortment of documents, interviews, and other evidence to substantiate expenditures that qualify for the research tax credits.
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.
