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.
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TOPICS
IRS Practice & Procedure
Early signs from Treasury on the scope of digital asset cost basis reporting
This item discusses issues Treasury will have to grapple with when it provides cost basis reporting guidance.
Senators request details on IRS info return destruction
The inquiry posed seven specific questions to the IRS concerning the decision, how it was arrived at, its potential effects and whether the Service has destroyed such documents before processing them at any other time.
Senators urge 2-D barcoding of paper-filed tax returns in 2023
Fourteen GOP members of the Senate Finance Committee added their voices to National Taxpayer Advocate Erin Collins’s recent directive to the Internal Revenue Service relating to processing of paper-filed returns.
Tax equity research lacks demographic data, GAO reports
The US Government Accountability Office found disparities in the distribution of some tax items, but notes impediments to knowing taxpayers’ race, ethnicity, and sex.
House subcommittee queries audit rates, IRS resources
Officials from the IRS and the US Government Accountability Office address legislators’ questions on taxpayer service and enforcement across income levels.
IRS audit rates decreased most for wealthy, GAO finds
In a study, the US Government Accountability Office finds that the Internal Revenue Service’s individual tax audit rates decreased by 72% during 2010–2019, and by a greater percentage for higher-income taxpayers than for lower-income ones.
IRS blames old tech in destruction of information returns
The IRS responds to a report by the Treasury Inspector General for Tax Administration that pointed to the March 2021 incident as one example demonstrating a need for the Service to increase e-filing options.
TIGTA: IRS should work to expand e-filing
The Treasury Inspector General for Tax Administration finds a lack of coordinated effort across the IRS to fulfill opportunities for wider electronic return filing.
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.
Staffing shortages, backlog hampered IRS in 2022 filing season, TIGTA says
The Treasury Inspector General for Tax Administration issues a preliminary assessment of the IRS’s performance in the recently concluded period for income tax filings.
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.
Reporting cash receipts over $10,000
This article discusses the details of the reporting requirement, providing numerous examples, and offers recommendations for practitioners when advising clients about their reporting obligations for cash receipts over $10,000.
Invitation issued for IRS Priority Guidance Plan recommendations
The IRS opened its annual to-do list for drafting regulations and other formal guidance to public suggestions of priority tax issues.
IRS proposes to amend estate and gift tax basic exclusion regs.
Exceptions to the special rule allowing the temporarily higher basic exclusion amount to apply to gifts credited against estate tax.
Supreme Court holds Tax Court not bound by petition filing deadline
The 30-day limit under Sec. 6330(d) for petitioning the Tax Court to review an IRS determination is nonjurisdictional and can be equitably tolled, the Court holds in the case of a taxpayer whose petition was one day late.
IRS funding, technology assessed in House hearing
IRS Commissioner Charles Rettig and National Taxpayer Advocate Erin Collins testify to the House Oversight and Reform Committee.
Treasury equity action plan reports progress
The tax implications of the Biden administration’s policy of advancing racial equity and support for underserved communities across the government are outlined.
Superfund taxpayers granted failure-to-deposit penalty relief
The IRS also assures payers of the reinstituted excise taxes that they will not lose a deposit safe harbor in early 2023.
Acute IRS challenges had chronic origins, GAO reports
The US Government Accountability Office draws lessons for the IRS in handling taxpayer return errors, processing those returns more timely and serving taxpayers’ needs.
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.
