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).
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Tax
10 situations when a CPA should call “timeout”
This article highlights situations when a tax accountant needs to recognize that it’s time to call in legal counsel.
The importance of tax quality control
Quality control (QC) is of utmost importance when delivering professional services, including tax planning and compliance services.
Small businesses excused from filing Form 3115 to comply with repair regs.
IRS provides relief requested by AICPA and numerous others for accounting method changes.
IRS issues new and revised passenger automobile depreciation limits
New figures for 2014 reflect the retroactive extension of bonus depreciation.
Anti-splitter rules finalized
The IRS issued regulations under Sec. 909 regarding the foreign tax credit splitter rules.
Sec. 4980D excise tax relief is available for certain small employers
IRS gives limited transition relief for employer payment plans and 2% S corporation shareholder arrangements.
Identifying full-time employees who change jobs within an employer group
The IRS issued guidance under the Patient Protection and Affordable Care Act on how to measure the lookback period for an employee under the lookback measurement method when the measurement period applicable to the employee changes.
IRS disagrees with Tax Court on partners’ COD exclusion
The IRS will not acquiesce to Tax Court decisions allowing general partners who guaranteed the debt of their partnership and were not in bankruptcy in their individual capacity to exclude from gross income cancellation-of-debt (COD) income arising from a Title 11 bankruptcy proceeding of the partnership.
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.
Qualified performance-based compensation rules are finalized
The Internal Revenue Code provides an exception for certain performance-based compensation from the $1 million deduction limitation for compensation paid to covered employees by publicly held corporations.
Final regs. provide rules for assessment limitation period for undisclosed listed transactions
Generally, the IRS has three years from the later of the date the return was filed or the original due date of the return to assess tax.
Former partner liable for trust fund penalty
A taxpayer couldn’t prove his CPA had responded to an IRS letter assessing the 100% penalty for failure to pay payroll tax.
AICPA asks IRS for portability relief for surviving spouses
The AICPA sent a letter to the IRS on recommending ways to make it easier for surviving spouses to elect portability of the deceased spouse’s unused estate tax exemption.
Wraparound coverage must meet five requirements to qualify as an excepted benefit
The government issued final rules explaining the requirements that must be met before so-called wraparound health care benefits are permitted under the health care law.
Treasury will not have to tell PTIN holders that they are under investigation
The new rules aim to prevent PTIN holders who are under investigation from learning that they have been identified as suspects or are the subject of an investigation.
Final regulations amend broker basis reporting requirements
The IRS issued final and temporary regulations that clarify and simplify rules regarding broker basis reporting issued in 2013.
Sec. 529A ABLE accounts may be set up before the IRS issues guidance
The IRS announced that state ABLE programs that are established before the Service issues guidance under Sec. 529A will be deemed to comply with the rules when they are issued.
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 considering free e-filing for employment tax returns
The IRS asked for comments on a proposal to establish a free e-filing program for employment tax returns in an attempt to increase electronic filing of these returns by businesses.
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