Individual income taxation

TOPICS / TAX

June 1, 2022

Abusive CRATs and Maltese IRAs among ‘Dirty Dozen’ tax scams

The first installment of the Internal Revenue Service’s annual feature focuses on four abusive transactions and arrangements.

June 1, 2022

Changes to Form 1099-K

Recent changes in reporting requirements will lead to mistakes, but taxpayers should not ignore them.

June 1, 2022

Tax advice for clients who day-trade stocks

Communicate the benefits of the mark-to-market election.

May 23, 2022

IRS mostly correct on recovery rebate credits, TIGTA says

The IRS administered the recovery rebate credit correctly for all but 0.7% of returns in the 2021 filing season, the Treasury Inspector General for Tax Administration found.

May 9, 2022

Procedures for Puerto Rico residents to claim a 2021 child tax credit

The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.

May 1, 2022

Adopting a child: Tax planning considerations

Parents pursuing an adoption can use a CPA’s advice.

May 1, 2022

Eleventh Circuit: Judicial extinguishment proceeds formula invalid

The IRS’s interpretation of a conservation easement rule is struck down.

April 18, 2022

SALT cap challenge is denied Supreme Court review

The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.

April 1, 2022

Mortgage interest credit aids first-time homebuyers

The subsidy improves affordability for lower-income families.

April 1, 2022

Losses from millionaire’s donkey breeding allowed

A taxpayer convinces the Tax Court he entered into the activity for profit despite not making one and having substantial other income.

March 29, 2022

Billionaire minimum tax could pose difficulties

The proposal in President Joe Biden’s fiscal 2023 budget to impose a 20% minimum tax on certain high-wealth individuals is seen as likely to raise thorny issues and likely even constitutional challenges.

March 28, 2022

Biden proposes higher corporate tax rate, 20% billionaire minimum tax

Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.

March 22, 2022

Individual taxpayers must answer cryptoasset question, IRS notes

Front and center on Form 1040 is whether taxpayers had a virtual currency transaction.

March 10, 2022

New, lower Form 1099-K threshold prompts cautions, criticisms

The new, lower $600 reporting threshold for reporting credit card and cash payment app transactions will likely lead to problems for taxpayers and payment settlement entities, the Taxpayer Advocate Service warns.

March 1, 2022

Don’t try this at home

Gold coins kept in taxpayer’s residence caused taxable IRA distributions.

March 1, 2022

Paradise postponed

Taxpayer’s organic oasis was not yet a going concern, the Tax Court holds.

February 1, 2022

Carried interest reporting FAQs posted

Guidance includes sample worksheets and instructions for applicable passthrough entities and taxpayers.

February 1, 2022

Tax treatment of COVID-19 homeowner relief payments clarified

Payments are excluded from gross income; a safe harbor is provided for itemized deductions.

January 28, 2022

IRS: ‘Limited group’ getting erroneous Letters 6419

The Internal Revenue Service pushes back against suggestions that errors in the letters, which report to taxpayers their advance child tax credit payments for 2021, are widespread.

January 26, 2022