A recent Tax Court case illustrates the problems taxpayers can face if they do not strictly adhere to the rules regarding dependents.
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OIC and trust fund recovery mediation now available nationwide
Rev. Proc. 2014-63, issued in December, provides rules for a nationwide implementation of post-Appeals mediation for offer-in-compromise (OIC) and trust fund recovery penalty cases.
Minimum essential coverage, other health care reform guidance issued
The IRS lists “individual mandate” exemptions not requiring a certificate from a health insurance exchange.
Standard mileage rates for 2015
The IRS gave 2015 standard mileage rates for calculating the deductible costs of operating a vehicle.
Right to purchase land is a capital asset
A taxpayer’s sale of his position in a lawsuit resulted in capital gain rather than ordinary income.
Domestic production gross receipts not derived from free phone app
A bank does not have domestic production gross receipts for purposes of the Sec. 199 domestic production activities deduction when customers download its free mobile phone app.
Employment tax and worker classification not subject to TEFRA
In Field Attorney Advice 20145001F, the IRS concluded that the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), P.L. 97-248, does not apply to employment tax or worker classification examinations.
Final rules govern reporting of specified foreign financial assets
The regulations provide an exception for dual-resident taxpayers taxed as residents of a treaty partner country; IRS requests comments on virtual currency.
Cash balance plans for professional practices
Understand the rules for this leading form of retirement benefit.
The domestic production activities deduction for computer software
Know how to apply the rules to this fast-changing industry.
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.
IRS asks for comments on proposed rules for high-cost health plans
The Affordable Care Act will impose a 40% excise tax on health care plans that provide excess benefits (so-called Cadillac health plans) starting in 2018. To prepare for its implementation, the IRS is asking taxpayers to comment on proposed rules.
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.
Employers have more time to claim work opportunity tax credit
Qualifying employers must file a certification that the employee being hired is a member of a targeted group, no later than the 28th day after the employee begins work.
Sec. 4980D excise tax relief is available for certain small employers
The IRS said that small employers will not be subject to the Sec. 4980D excise tax for health insurance employer payment plans that do not comply with the market reforms required under the health care law.
Employee consent to employment tax refunds could be obtained electronically
The IRS issued a proposed revenue procedure that would permit employers who file refund claims for overpaid Federal Insurance Contributions Act and Railroad Retirement Tax Act taxes to obtain their employees’ consent to the refund claims electronically.
Small businesses won’t have to file Form 3115 to comply with repair regs.
Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, the IRS announced.
FASB, AICPA working to clarify uncertain tax position guidance
The staffs of the Financial Accounting Standards Board and the AICPA will work together to clarify guidance for certain disclosures regarding uncertain tax positions.
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.
Final rules govern foreign tax credit splitter arrangements
The IRS finalized temporary regulations issued in 2012, called anti-splitter rules because they aim to prevent foreign income from being inappropriately split from foreign tax in calculating the foreign tax credit.
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