Following up on its promise earlier in the year to follow the Tax Court’s holding that the limit of one rollover per year applies on an aggregate basis and not on an IRA-by-IRA basis, the IRS withdrew a proposed regulation from 1981, Prop. Regs. Sec. 1.408-4(b)(4)(ii), which had provided otherwise
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E-filing of amended returns, elimination of Form 1040X among TIGTA recommendations
Taxpayers should be allowed to use Form 1040 to amend their returns and should be able to e-file amended returns, according to recommendations made by the Treasury Inspector General for Tax Administration (TIGTA) on Wednesday (TIGTA Rep’t No. 2014-40-028). Although individual tax returns in the Form 1040 series may all
Limit on direct deposit of refunds will go into effect in 2015
In its latest attempt to fight tax refund fraud, the IRS said that, beginning in January 2015, it will impose a limit of three electronic direct deposits of tax refunds into a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive the fourth and subsequent
The lure of a Sec. 475 election
A mark-to-market election can be very beneficial for securities or commodities traders. Here’s how to determine who qualifies for the election and who should make it.
The Sec. 4980H assessable payment for large employers
Know your business’s responsibilities under the Affordable Care Act.
Health care reform essentials
New health care regulations create many challenges and opportunities for businesses. Here are 10 things CPAs should know about the new rules to help the businesses they serve make wise decisions.
Creating the net investment income tax regulations: A conversation with David Kirk
The JofA gets an inside view from David Kirk, one of the principal architects of the Treasury regulations related to the 3.8% tax that was passed to raise money for health care reform.
IRA participants can purchase longevity annuities
Final regulations issued on Wednesday (T.D. 9673) permit individual retirement account (IRA) participants to enter into contracts for annuities that begin at an advanced age (often called longevity annuities), using a certain amount of their account balances, without having these amounts count for calculating required minimum distributions from the IRAs
Streamlined tax-exempt application process introduced
The IRS introduced on Tuesday a streamlined application process for small organizations that want tax-exempt status under Sec. 501(c)(3) (Rev. Proc. 2014-40). Final and temporary regulations were also issued on July 1 to allow the IRS to adopt this streamlined application process (T.D. 9674). To apply for tax-exempt status under Sec.
ITINs will expire after five years under new IRS policy
The IRS announced a new policy concerning individual taxpayer identification numbers (ITINs) on Tuesday: ITINs that are not being used will expire after five years (IR-2014-76). The policy will go into effect in 2016. The IRS reports that only a quarter of the 21 million ITINs issued since 1996 are
Employment tax responsibilities of designated payer agents
New rules clarify tax responsibilities when an employer designates an agent to pay its employees. The IRS issued final regulations on the liability for employment taxes when an employer designates an agent under a “service agreement” to pay its employees and to satisfy its employment tax obligations instead of following
District court invalidates husband’s transfer of property to spouse
Applying a five-part test, a district court upholds IRS liens against property nominally owned by the taxpayer’s wife. The District Court for the Northern District of Illinois invalidated a husband’s quitclaim deed that purportedly transferred ownership of the marital residence to his spouse. The husband, Jack L. Stone, had unpaid
Country-by-country reporting by multinationals
The Organisation for Economic Co-operation and Development (OECD) has recently been advocating for increased tax transparency and for international cooperation to prevent tax avoidance. One element of this international cooperation that the OECD would like to see implemented is country-by-country income and tax reporting by multinational corporations. Country-by-country reporting would
Spouses must qualify as first-time homebuyers under same provision
An appellate decision overturns the Tax Court on the statute’s plain language. Reversing the Tax Court, the Eleventh Circuit held that married taxpayers filing jointly did not qualify for the first-time homebuyer credit when one of them was a longtime homeowner. The unambiguous language of Secs. 36(c)(1) and 36(c)(6) requires
Stock forfeitable upon employees’ termination “for cause” not substantially vested
An employment agreement’s requirements constitute an “earnout” provision that could create a substantial risk of forfeiture under Sec. 83. In consolidated cases, the Tax Court denied the IRS summary judgment, concluding that the phrase “termination for cause” in the taxpayers’ restricted stock and employment agreements did not have the same
Guidance issued on application of Windsor to retirement plans
Qualified plans must recognize same-sex marriages after the Windsor decision and must be amended, if need be, to make them conform to the results of that decision. Under guidance issued by the IRS, administrators of qualified retirement plans must recognize the same-sex spouses of legally married participants as of June
Rollover of gains on certain property dispositions
A little-known provision of the Code is Sec. 1044, which allows certain taxpayers to defer recognition of gain on the sale of publicly traded securities that is reinvested into specialized small business investment companies (SSBICs). When taxpayers later dispose of interests in SSBICs, important tax implications can arise from the
Trust can be a real estate professional
Trustees performing services on a trust’s behalf qualify the trust for the exception for real estate professionals to the passive activity loss disallowance. The Tax Court held that a trust’s rental losses could be currently deducted since the trust qualified as a real estate professional. According to the court, the
Complete rules for the IRS’s voluntary return preparer certification program are released
On Monday, the IRS published guidance introducing its new, voluntary Annual Filing Season Program, which permits tax preparers who are not CPAs, attorneys, or enrolled agents to complete tax education requirements and receive a certificate, called a Record of Completion (Rev. Proc. 2104-42). (For prior coverage, see “IRS Reveals Details
Regulations provide guidance for small-employer premium tax credit
The IRS issued final regulations on the Sec. 45R credit for small employers that offer health insurance coverage for employees (T.D. 9672). The regulations provide guidance on how to determine full-time-equivalent employees (FTEs) and average annual wages, how to calculate the credit, and what is a “qualifying arrangement” for purposes
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From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
March 31, 2026
Current Developments in Taxation of Individuals: Part 1
March 6, 2026
