AICPA Comments on Child Regs

The AICPA suggested modifications to proposed regulations concerning children claimed as dependents by parents who are separated or divorced. REG-149856-03, released in May, amends Treas. Reg. § 1.1152-4, which specifies support, custody and parental status requirements for children to qualify as dependents of parents who are divorced, separated or live apart from each other. The provisions reflect amendments under the Working Families Tax Relief Act of 2004 and the Gulf Opportunity Zone Act of 2005. In general, they prescribe how a parent may claim a child who spends the greater part of a year with him or her, determined by counting the number of nights the child spends with that parent.

Suggestions by AICPA members and staff on the Individual Tax Technical Resource Panel (TRP) included looking to existing guidance to deal with a potential difficulty also noted by other commenting parties: how to count nights when a child stays with neither parent. Existing guidance already covers temporary absences, but not when a child is away for longer periods, which could be addressed specifically, the TRP said. The group also suggested requiring that a written declaration to release a custodial parent’s claim to the child be made on Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.