Taxpayers will not be able to deduct expenses and losses related to a former personal residence if the facts and circumstances fail to show the conversion was for income-producing purposes.
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TOPICS / TAX
Individual income taxation
Emerging tax issues cause due-diligence problems
Speaking at an IRS Nationwide Forum in Fort Washington, Md., the deputy director of the IRS Office of Professional Responsibility warned practitioners that they should exercise due diligence when advising clients on emerging tax issues.
Treatment of CHIP buy-in programs clarified
Taxpayers will be ineligible for premium assistance credits only for periods they are enrolled in a CHIP buy-in program that has been designated as minimum essential coverage.
Tax treatment of employer-provided meals and lodging
The line between exempt fringe benefit and taxable compensation features some surprising twists in this enduring source of tax controversy.
Qualified performance-based compensation rules are finalized
Regs. clarify the per-employee limitation and transition rule for compensation paid before a corporation becomes publicly held.
Tax reform, lower rates among top legislative goals, Ryan tells AICPA
In a speech to the AICPA’s spring Council meeting, Rep. Paul Ryan, chair of the House Ways and Means Committee, laid out his goals for tax reform and lower tax rates. He also called for the United States to adopt a territorial tax system.
Supreme Court invalidates Maryland’s personal income tax structure
The U.S. Supreme Court held that Maryland’s personal income tax, which does not permit a credit against Maryland county income tax for taxes paid to other states, violates the dormant Commerce Clause.
Millions of taxpayer phone calls went unanswered by IRS this tax season
The interim report for the 2015 filing season revealed that the average time a taxpayer calling the IRS for assistance had to wait was 24.6 minutes, up from 11.7 minutes last year, and that very few taxpayer calls were actually answered.
Egg donor’s payment for pain is taxable income
Payments a woman received under a voluntary egg-donation contract could not be excluded from income as damages for physical injury or sickness under Sec. 104(a)(2).
Wife of anti-tax author sentenced to prison
Doreen Hendrickson, wife of tax protester author Peter Hendrickson, who wrote the antitax book Cracking the Code, has been sentenced to 18 months in prison for criminal contempt after failing to file amended tax returns as ordered by a court and for filing a false return.
Long-haul truck driver has no tax home
A long-haul truck driver who spent 358 days on the road during 2009 did not have a tax home that would permit him to deduct his travel expenses as unreimbursed business expenses.
IRS proposes new slot machine tax rules
Under the safe harbor, gamblers complying with the rules would be permitted to net gains and losses from all slot machine play on the same calendar day at one gambling establishment.
Dependency rules can trip up taxpayers
A recent Tax Court case illustrates the problems taxpayers can face if they do not strictly adhere to the rules regarding dependents.
Taxpayers who already filed 2014 returns using incorrect Forms 1095-A won’t have to pay more tax
The IRS announced that about 800,000 taxpayers (20% of the people receiving the form) had received incorrect Forms 1095-A, Health Insurance Marketplace Statement, for 2014.
Thousands receive incorrect health care tax forms; signup period extended
The government says it sent thousands of incorrect Forms 1095-A to taxpayers who signed up for health insurance on the HealthCare.gov website. It is working to correct those forms by early March.
Most outstanding claims for FICA tax refunds will be denied, IRS announces
The IRS announced that it would disallow all claims for refund that were filed for Federal Insurance Contributions Act taxes withheld on severance payments in light of the Supreme Court’s decision in Quality Stores, Inc., that those payments were subject to tax.
IRS issues revised 2014 and 2015 passenger automobile depreciation limits
The IRS issued new figures for depreciation deductions allowed for business use of passenger automobiles for 2014 to take into account the 50% additional depreciation that can be taken for vehicles during the 2014 tax year.
2015’s dirty dozen tax scams
The IRS released its “dirty dozen” list of top tax scams for 2015, starting with phone scams and ending with frivolous tax arguments.
Kiddie tax complexity grows
Complexity begins with the option for parents to “simplify” matters by allowing them to include the child’s income on the parents’ own return instead of filing a separate return for the child.
Gross income omissions and the 6-year tax assessment period
How taxpayers can guard against doubling the statute-of-limitation period for the IRS to assess tax.
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