President Barack Obama submitted his American Jobs Act to Congress on Monday, and among its provisions are several tax items, including a temporary payroll tax cut, a limit on itemized deductions for certain high-income taxpayers, and a proposal to tax carried interests as ordinary income rather than capital gains. The
Advertisement
TOPICS / TAX
Individual income taxation
Estate Tax Form, Instructions Finalized for 2010; Due Sept. 19
The IRS on Thursday posted the instructions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for decedents dying in 2010. For most 2010 decedents, the due date is Sept. 19. The form itself was posted on Sept. 3, but without instructions. For decedents who died between Jan.
IRS Expands Hurricane Irene Relief
On Friday, the IRS expanded its Hurricane Irene relief to include four counties in Vermont, after the president declared those counties federal disaster areas (VT-2011-34). The tax relief announced is similar to that already published for parts of North Carolina, New York, New Jersey and Puerto Rico. (For details of
Taxpayers Hit by Irene Get Postponement
Taxpayers in certain areas affected by Hurricane Irene have until Oct. 31 to file certain returns and make payments normally due before then, the IRS announced Thursday (IR-2011-87). The areas eligible for relief include parts of North Carolina, New Jersey, New York and Puerto Rico; the IRS expects to provide
Real Estate Transfer Taxes: Practical Considerations
Approximately two-thirds of U.S. states, as well as a number of municipalities, counties and other units of local government, impose a tax on taxpayers when they transfer real property to another party. As a practical matter, a real property transfer tax is typically triggered if a deed is recorded; however,
2011 Tax Software Survey
This year’s tax preparation software survey by The Tax Adviser and the JofA yielded more than 10,000 responses from readers, showing what tax professionals like and dislike about the tax preparation software they used this tax season. As in years past (see the 2010 survey here), price and ease of
Golfer Bogies Endorsement Income
Professional golfer Retief Goosen split a decision with the IRS in the Tax Court that partly redetermined the character and source of his income from product endorsements. Goosen is a native of South Africa and a nondomiciliary United Kingdom resident. He was well-known abroad before he won the 2001 U.S.
Deduction for Cat Expenses Get Second Life
The Tax Court permitted a deduction for a taxpayer’s unreimbursed volunteer expenses incurred while caring for foster cats in her home, since they were incurred “incident to the rendition of services” to a qualified organization. The court also held the recordkeeping requirements for cash contributions under $250 should apply to
No Reasonable Cause Defense for Preparer’s Omission
The Tax Court upheld an accuracy-related penalty, rejecting the husband-and-wife taxpayers’ argument that they had reasonable cause for a tax understatement caused by their return preparer’s apparently accidental omission of an item of income. The error involved omission of nearly $3.4 million in gain, which was slightly more than 10%
Health Care Premium Credit Rules Proposed
The IRS released proposed regulations Friday (REG-131491-10) implementing the health insurance premium tax credit, which was enacted last year by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act and is effective starting in 2014. The proposed regulations are part of a “next step”
IRS Revises Actuarial Tables
The IRS issued final regulations Thursday relating to the use of actuarial tables for valuing annuities, interests for life or a term of years, or remainder or reversionary interests. The regulations (TD 9540) were necessary because IRC § 7520(c)(3) directs the IRS to update the actuarial tables to take into
IRS Issues Guidance on Carryover Basis Rules for 2010 Decedents’ Estates
On Friday evening, the IRS issued guidance on the time and manner for making the election not to have estate tax apply to estates of decedents who died in 2010 (Notice 2011-66). The election must be made by Nov. 15, 2011. The notice also discusses how donors can elect out
2011 Tax Software Survey: Individual Product Survey Responses
The JofA and The Tax Adviser surveyed our readers to determine what they liked and did not like about their tax preparation software. The survey was conducted in May 2011 and received 10,026 responses. As in past years, three products led the pack in the number of respondents using them.
Client Tax Fraud and the CPA
Your client just called and left the following message: “I answered the door at my home today, and an agent who said he was from the IRS Criminal Investigation Division wanted to ask me some questions. What should I do?” While you may never get a call from a client
Prohibited Transactions Wipe Out Bankruptcy Exemption for Self-Directed IRA
The Court of Appeals for the Eleventh Circuit affirmed a district court decision (which had previously affirmed a bankruptcy court) that all funds in two of an individual’s IRAs and part of a third were not exempt from his bankruptcy estate under Bankruptcy Code (USC Title 11) section 522(b)(3)(C). These
Managing an IRS Correspondence Audit
The IRS has expanded its use of correspondence examinations in lieu of field examinations of individual income tax returns. While this trend has allowed the Service to collect additional revenue more efficiently, it has also caused difficulties for some taxpayers and CPAs representing them. The IRS has had problems in
IRS Finalizes Circular 230 Regulations
The IRS issued final regulations (TD 9527) implementing components of its initiative to register and regulate all paid tax return preparers. The regulations, which finalized proposed regulations issued in August 2010 (REG-138637-07) revise Circular 230. Paid preparers of all or substantially all of certain tax returns and claims for refunds
Fourth Circuit Joins Others Upholding Two-Year Innocent Spouse Limit; Tax Court Again Rejects It
The Fourth Circuit Court of Appeals joined the Third and Seventh circuits in validating Treasury regulations limiting to two years the period in which taxpayers may apply for innocent spouse equitable relief under IRC § 6015(f). The decision overruled the Tax Court, which has consistently reached an opposite conclusion, including
Congressional Committee Checks In on Registered Tax Preparer Program
While tax professional communities offered diverging opinions of the registered tax return preparer (RTRP) program to a congressional subcommittee, all agreed on one thing—the IRS made a significant effort to listen. Although the program when initially proposed got off to a “rocky start,” a representative of the National Association of
Practitioners, Policymakers Welcome IRS Change on Innocent Spouse Relief
Tax practitioners, legislators and taxpayer advocates said the IRS’ announcement that it would no longer require taxpayer requests for innocent spouse equitable relief under IRC § 6015(f) to be made within two years of the beginning of collection activity was a long overdue change. “It’s not surprising at all; the
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
