The IRS released final regulations on the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014 (known as the “individual mandate”). The final rules adopt the proposed regulations issued in January with a few clarifications (REG-148500-12).
Advertisement
TOPICS / TAX
Individual income taxation
Before you sign: Natural gas lease tax issues
The practice of extracting natural gas from shale through hydraulic fracturing, commonly referred to as “fracking,” is becoming more widespread throughout the country. It is essential for practitioners to understand the tax issues that could arise for clients who own property with shale gas deposits. From 2001 to 2011, Americans
Government farm payments subject to SE tax
The Tax Court held a taxpayer’s net income from payments received under the U.S. Department of Agriculture’s Conservation Reserve Program (CRP) was self-employment income under Sec. 1402(a). During 2006 and 2007, Rollin Morehouse, a resident of Minnesota, received “CRP annual rental” payments as consideration for agreeing to set aside from
IRS releases inflation adjustments for 2014
On Thursday, the IRS issued the annual inflation adjustments for 2014 for more than 40 tax provisions and the tax tables for 2014 (Rev. Proc. 2013-35). Among the inflation-adjusted amounts that have increased are the personal exemption, which increased from $3,900 in 2013 to $3,950 for 2014, and the standard
Filing season will be delayed, IRS says
The IRS announced on Tuesday a delay of one or two weeks in the start of the 2014 filing season as a result of the 16-day government shutdown to allow adequate time for the IRS to prepare and test systems. The return filing start date was originally going to be
Final regs. clarify who is subject to 50% limit on meal and entertainment expenses
The IRS issued final regulations clarifying which party is subject to the 50% limit on deductible meal and entertainment expenses under Sec. 274(n) (T.D. 9625). The final rules adopt proposed regulations (REG-101812-07) issued in July 2012 without substantive change. As the IRS emphasized in the preamble to the earlier proposed
IRS updates special per diem rates for 2013–2014 travel expenses
On Wednesday, the IRS issued its annual update of special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home in 2013 and 2014 (Notice 2013-65).The notice provides the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and
New procedures for equitable innocent spouse relief are released
On Monday, the IRS issued Rev. Proc. 2013-34, providing the rules under which taxpayers can obtain equitable innocent spouse relief from joint liability under Sec. 66(c) or 6015(f). Married couples who file joint returns are jointly liable for their federal income tax liability, while married couples who live in community
Preventive health services with no deductible qualify as high-deductible health plans
In its latest guidance on health care rules, the IRS issued a notice on Monday clarifying that preventive health services that are provided without a deductible under a health insurance plan will not disqualify a high-deductible health plan (HDHP) (Notice 2013-57). Under Sec. 223, individuals who participate in a health
2013 tax software survey
In this year’s survey by the JofA and The Tax Adviser, more than 5,000 CPAs assessed the software they used to prepare 2012 tax returns. This year, tax preparers had to contend with a compressed filing season caused by late enactment of extender legislation in the American Taxpayer Relief Act
The brave new world of cost basis reporting
Recent tax law changes have made accurately calculating and reporting clients’ capital gains even more critical with higher effective tax rates being imposed on those with higher adjusted gross income (regardless of source) and the new Sec. 1411 net investment income tax taking effect for tax year 2013. It had
The qualified dividend multiplier effect
With the passage of the American Taxpayer Relief Act of 2012, P.L. 112-240, taxpayers can continue to save significant taxes on qualified dividends and long-term capital gains. Excluding the special 25% and 28% rates, Sec. 1(h)(1) now provides for three rates on qualified dividends and long-term capital gains (preferential income):
All legal same-sex marriages to be recognized for tax purposes, IRS says
In the wake of the Supreme Court’s Windsor decision invalidating a portion of the Defense of Marriage Act (DOMA), the Treasury Department and IRS announced on Thursday that “same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.” The IRS also
Final rules issued on individual health care mandate
The IRS released final regulations Tuesday on the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014 (known as the “individual mandate”) (T.D. 9632). The final rules adopt the proposed regulations issued in January with a
IRS issues draft FATCA report form
On Thursday, the IRS released a draft Form 8966, FATCA Report, which will be used by foreign financial institutions (FFIs) and withholding agents to comply with their FATCA reporting and withholding requirements. Under the Foreign Account Tax Compliance Act (FATCA), enacted as part of the Hiring Incentives to Restore Employment
Final rules issued on IRS disclosure of tax return information under health care law
The IRS issued final regulations about how it will release certain tax return information to the Department of Health and Human Services (HHS), as required by 2010’s health care legislation (T.D. 9628). The final regulations, which will be effective Wednesday, describe certain items the IRS will disclose in addition to
IRS releases draft net investment income tax form
On Wednesday, the IRS released a draft of Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, a new dual-purpose form that will be used by individuals and trusts and estates to compute the new 3.8% tax and then to report the tax on Forms 1040, U.S. Individual Income Tax
2013 tax software survey: Individual product survey responses
In this year’s survey by the JofA and The Tax Adviser, more than 5,000 CPAs assessed the software they used to prepare 2012 tax returns. The survey was conducted in May 2013. Overall, respondents rated their software an average of 4.1 out of 5. Users of three products, Lacerte, ProSystem
Professional poker player goes bust in Tax Court
A professional poker player who was also a civil and geotechnical engineer and a laundromat owner lost in Tax Court on Monday (Hom, T.C. Memo. 2013-163). The court held that John Hom received unreported wages from his wholly owned C corporation, could not deduct unsubstantiated gambling losses or travel expenses,
Treasury postpones employer health care penalty, information reporting for one year
Large employers that fail to provide minimum health coverage for employees will not be subject to the shared-responsibility penalty until 2015 after Treasury announced on Tuesday that it would delay certain provisions of 2010’s health care legislation. In a Treasury blog post titled, “Continuing to Implement the ACA in a Careful,
Features
SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
From The Tax Adviser
October 31, 2025
Recent developments in estate planning
October 31, 2025
Current developments in taxation of individuals: Part 2
September 30, 2025
Current developments in taxation of individuals: Part 1
August 30, 2025
