Individual income taxation

TOPICS / TAX

November 1, 2021

Imprisonment does not constitute reasonable cause

The reasonable-cause defense was denied even though the attorney of a jailed taxpayer had assured the taxpayer the returns were filed and taxes were paid.

October 15, 2021

IRS addresses taxpayer reliance on FAQs, will save copies of old FAQs

Taxpayers who reasonably rely on FAQs posted by the Internal Revenue Service will have a reasonable-cause penalty defense under a new policy announced by the agency on Friday. The IRS will also keep original versions of FAQs on its site after it updates them.

October 1, 2021

Basis reduction required in year of debt discharge

A taxpayer’s loss is disallowed based on the timing of a basis adjustment.

October 1, 2021

Refund of minister’s self-employment taxes denied

The taxpayers did not properly claim an exemption, the court holds.

September 3, 2021

IRS updates business travel per-diem rates

The allowances for determining deductions for lodging, meals, and incidental costs are slightly higher than before.

August 26, 2021

AICPA recommends QBI improvements

The AICPA recommended in a letter to Senate tax-writing leaders eight ways to improve the deduction for qualified business income under Sec. 199A.

August 1, 2021

Dependent care assistance unused balances are excluded from income

Pandemic relief for 2021 also includes a temporary increase in the exclusion amount.

July 1, 2021

Bank information can now be updated on child tax credit portal

The IRS announced that is has added a new feature to its Child Tax Credit Update Portal to allow individuals to enter bank information so they can receive advance child tax credit payments by direct deposit.

July 1, 2021

Tax deductions prevent discharge of school debt

The debtor’s argument that a loan wasn’t shown to have been used solely to pay higher education expenses is unavailing.

July 1, 2021

2021 child tax credit, EITC, and premium tax credit limits updated

ARPA temporary measures are quantified in a revenue procedure.

July 1, 2021

When is food and drink ‘provided by a restaurant’?

The IRS explains which meals qualify for a temporary 100% expense deduction.

June 29, 2021

Next batch of ‘Dirty Dozen’ warns of personal info scams

In the second installment of this year’s “Dirty Dozen” list of tax scams, the IRS warns taxpayers to be vigilant for fraudulent schemes in the form of emails, text or social media messages, and phone calls.

June 28, 2021

IRS warns of pandemic-related tax scams in ‘Dirty Dozen’ for 2021

Hijacking of economic impact payments and unemployment checks are spotlighted in the IRS’s annual alert, which warns taxpayers of the most prevalent scams and schemes the Service has identified.

June 24, 2021

Tax consequences of nonfungible tokens (NFTs)

These new blockchain-created digital assets may be treated as intangibles for tax purposes, but a dearth of guidance leaves questions.

June 22, 2021

Child tax credit: New portal for opting out of advance payments

A new IRS online portal lets taxpayers unenroll from receiving advance payments of the 2021 child tax credit.

June 17, 2021

Supreme Court lets health care law stand

The US Supreme Court held that Texas and several other states lacked standing to sue over the constitutionality of the Sec. 5000A mandate that requires individuals to obtain minimum essential health coverage. The decision leaves the Affordable Care Act in place.

June 14, 2021

Online sign-up now available for advance child tax credit payments

The IRS opened an online site that allows taxpayers who are not required to file a 2019 or 2020 individual income tax return to sign up to receive advance child tax credit (advance CTC) payments, which will begin July 15.

June 11, 2021

IRS posts ARPA credit FAQs

The IRS has posted two sets of FAQs that explain changes to the child and dependent care credit and to the sick and family leave credits made by the American Rescue Plan Act.

June 1, 2021

Compulsive gambler’s losses are substantiated using Cohan rule

The Tax Court estimates the taxpayer’s losses exceeded his reported winnings.

June 1, 2021

Cattle farm with no cattle denied farming losses

The Tax Court holds that the activity was a hobby of the taxpayer despite his farming experience.

FROM THIS MONTH'S ISSUE

How a CPA beat burnout after strokes, depression

Randy Crabtree, CPA, suffered two strokes in four days and struggled with his mental health for years before he learned to recognize, address, and prevent chronic stress. Learn from his insights on how CPAs can avoid professional burnout.