Line items


Hong Kong Is Most Costly Address
Hong Kong is the most expensive foreign city in which to live in 2014, according to the IRS’s updated maximum foreign housing cost exclusions under Sec. 911 (Notice 2014-29). The maximum exclusion for the Chinese city is $114,300. The second- and third-highest exclusions are for Moscow ($108,000) and Geneva ($100,500). The three cities were topped in 2013 by Tokyo, which fell to fourth place in 2014 with an exclusion of $96,000. In all, more than 300 listed foreign places had maximum exclusions above the standard amount of $29,760, which was up slightly from 2013 ($29,280).


HSA Inflation Adjustments
The IRS in Rev. Proc. 2014-30 provided inflation-adjusted annual amounts for calendar 2015 relating to health savings accounts. The figures were slightly increased from 2014.

 

* Not including any $1,000 “catch-up” contribution for individuals age 55 or older.
** High-deductible health plan


Multiple IRA Rollover Case Settled
The Tax Court entered a stipulated decision under a settlement between the IRS and tax attorney Alvan Bobrow and his wife, mooting the taxpayers’ motion for reconsideration.

The court in late February sided with the IRS in its interpretation of Sec. 408(d)(3)(B) that denied the Bobrows tax-free rollovers from more than one individual retirement account during a tax year (Bobrow, T.C. Memo. 2014-21; see “Tax Matters: Rollover Contribution to Second IRA Disallowed,” JofA, May 2014, page 61). The IRS subsequently in Announcement 2014-15 said it would follow the court’s decision but, acknowledging contrary informal guidance in Publication 590 and a 1981 proposed regulation that was never finalized, said it would not enforce the limitation as applying to all of a taxpayer’s IRAs until Jan. 1, 2015.

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News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.