The IRS recently promulgated final regulations that prohibit a taxpayer from increasing research credit carryforwards from closed years by electing the ASC method.
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Credits
IRS Explains the Reinstated Sec. 35 Health Coverage Tax Credit
IRS issued a notice to explain how the recently reinstated Sec. 35 health coverage tax credit applies for 2014 and 2015.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
Practical Strategies for Using Sampling for the Research Tax Credit
This item discusses efficient strategies for a tax department to consider when planning a statistical sample to estimate qualified research
expenditures.
Congress Makes Changes to Popular Tax Credits
Changes include new restrictions, penalties, and due diligence requirements for practitioners and affect the child tax credit, the American opportunity credit, and the EITC.
Passive Activity Credit Flowchart
Understanding the limitations on the use of passive activity credits is a key element in providing sound tax advice to clients.
Supreme Court Allows Premium Tax Credits in Federal Exchanges
The Supreme Court upheld the availability of premium tax credits under the PPACA when they are provided through health exchanges run by the federal government.
Directions in Individual Taxation
This article covers recent developments in the area of individual taxation, including the treatment of support
payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.
Trade Preferences Act Amends the Tax Code
The Trade Preferences Extension Act of 2015, enacted on June 29, contains a few tax provisions in addition to the trade measures that were the focus of the bill.
Claiming the Credit for Residential Energy-Efficient Property
Taxpayers can claim a residential energy-efficient property (REEP) tax credit for 30% of the cost of eligible solar water heaters, solar electricity property, fuel cell property, small wind energy property, and geothermal heat pump property (Sec. 25D).
How to Claim the Residential Energy-Efficient Property Credit for Geothermal Heat Pump Property
A taxpayer who meets certain requirements can claim the credit for expenses associated with geothermal heat pump property.
Rules Governing Internal-Use Software Are Proposed
The IRS issued long-awaited proposed regulations on what type of internal-use software qualifies for the Sec. 41 research credit. Although the new rules are proposed, not final, the IRS says it will not challenge taxpayers’ return positions that apply these rules currently.
IRS Will Waive Penalties for Underpayments Related to the Premium Tax Credit
IRS will provide automatic penalty relief for premium tax credit underpayments.
Employers Have More Time to Claim Work Opportunity Tax Credit
The IRS announced that it was extending the time employers that want to claim the work opportunity tax credit have to file Form 8850 for 2014 hires.
Proposed Rules Would Govern Sec. 41 Credit for Software
The IRS issued long-awaited proposed rules on what type of internal-use software qualifies for the Sec. 41 research credit.
The Orphan Drug and Research Tax Credits: The “Substantially All” Rule
The research credit under Sec. 41 (when in effect) and the orphan drug credit under Sec. 45C are sometimes available for the same expenses incurred during the development of pharmaceuticals. Understanding how the credits work and how to maximize the benefit from both of them when they are both available can reduce taxes for eligible companies.
Appellate Courts Reach Conflicting Decisions on Premium Tax Credit Regs.
On the same day, the D.C. Circuit and Fourth Circuit Courts of Appeals issued decisions on whether Regs. Sec. 1.36B-2(a)(1), which authorizes a premium tax credit for insurance purchased on health insurance exchanges established by the federal government, is a valid regulation.
IRS Issues Guidance on Health Insurance Premium Tax Credits
The IRS issued regulations and revenue procedures addressing how to calculate the Sec. 36B premium tax credit, including how the credit is calculated in conjunction with the Sec. 162(l) deduction for health insurance premiums of self-employed individuals.
Guidance Issued on Small-Employer Premium Tax Credit
IRS final regulations provide guidance on how small employers determine full-time-equivalent employees and average annual wages, how to calculate the credit, and what is a “qualifying arrangement” for purposes of the credit.
Alternative Simplified Research Credit Can Now Be Claimed on Amended Returns
The IRS issued temporary regulations permitting taxpayers to elect the Sec. 41(c)(5) alternative simplified credit on an amended return, as long as the taxpayer (or a member of its controlled group) did not elect to use any other method of calculating the research credit on an original or amended return for that year.
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.
