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FAQs on Bitcoin
In Notice 2014-21, the IRS provided guidance in the form of frequently asked questions on how tax principles apply to convertible virtual currencies, including bitcoin. Generally, transactions involving such currencies are an exchange of property and, where paid for performing services, will be considered wages or self-employment income. For more, see “Tax Practice Corner: What Tax Preparers Need to Know About Digital Currency.”

Premium Tax Credit Special Rule for Domestic Abuse
Notice 2014-23 allows married taxpayers who are victims of domestic abuse to be considered unmarried in 2014 for purposes of the health care premium assistance credit’s joint-filing requirement under Sec. 36B(c)(1)(C). A married individual who does not meet the Sec. 7703(b) provisions for being considered unmarried may satisfy the Sec. 36B(c)(1)(C) requirement by (1) using the married filing separately status; (2) living apart from the spouse at the time of filing; (3) being unable to file a joint return because he or she is a victim of domestic abuse; and (4) indicating on the return that he or she meets requirements (2) and (3).

Out of Egypt (and Three Other Countries)
In Rev. Proc. 2014-25, the IRS identified four countries and beginning dates in 2013 for which it will waive the residency and physical-presence tests of the foreign earned income and housing cost exclusions under Sec. 911: Egypt, July 3; Lebanon, Sept. 5; Pakistan, Aug. 9; and Yemen, Aug. 6.

Sec. 911(d)(4) provides an exception to the tests for individuals who leave a country because of war, civil unrest, or similar conditions that preclude the normal conduct of business. Individuals must have resided or been present in one of the countries before the specified dates and establish that they reasonably expected to have met either test but for the conditions.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

CHECKLIST

Being responsive to clients

CPAs and their firms have daily pressures and hectic schedules, but being responsive is crucial to client satisfaction. Leaders in the profession offer advice for CPA firms that want to be responsive to clients.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.