IRS offers expatriate tax relief
The IRS announced procedures to allow certain individuals who have renounced their U.S. citizenship to get into compliance with their US tax obligations and obtain relief for back taxes.
Individual Income Taxation
Taxpayer allowed a deduction under claim of right
A divorced spouse could deduct her indirect repayment of an amount previously included in her and her former husband's jointly reported income.
Child dependency claims by noncustodial parents
Practitioners can help taxpayers avoid common miscues under the special rule of Sec. 152(e).
Proposed regs. govern maximum automobile values
The IRS issued proposed rules that provide maximum automobile values for the cents-per-mile and fleet-average valuation rules used to determine the amount to include in an employee’s gross income for personal use of an employer-provided vehicle.
Alimony tax gap swells to $3.2 billion, TIGTA finds
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
The QBI deduction for rental real estate activity
Optimal treatment under Sec. 199A eludes any one-size-fits-all solution.
Broadened definition of Sec. 152 dependents
The Tax Cuts and Jobs Act of 2017 greatly increased the availability of the child tax credit. Find out the definition of dependent for those purposes and for taking advantage of “surviving spouse” status.
Casualty loss deduction from drug-induced gambling is disallowed
The Tax Court declines to expand 'other casualty' beyond one sustained with respect to tangible property.
‘Parsonage’ exclusion ruled constitutional
Reversing a district court, the Seventh Circuit upholds the Sec. 107 housing exclusion for 'ministers of the gospel.'
IRS changes maximum-vehicle-value rule
The IRS revised its maximum-vehicle-value rule for personal use of an employer-provided vehicle for 2019 for both the cents-per-mile rule and the fleet-average-valuation rule.
More proposed regs. on qualified opportunity funds issued
The regulations define the term “substantially all,” the definition of which was reserved in the earlier proposed regulations issued in October 2018.
IRS expands relief from underpayment penalty
The IRS announced that it is lowering from 85% to 80% the amount taxpayers are required to have paid in order to escape an underpayment of estimated income tax penalty for 2018.
Salesman’s termination payment held not for goodwill
The Tax Court also denies capital gain treatment but allows business deductions for a taxpayer's subsequent shooting activity.
Maximizing the higher education tax credits
A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.
Sec. 199A: Regulations shed light on QBI deduction
For the first time this tax season, many taxpayers will be claiming the Sec. 199A deduction, which provides a deduction for 20% of qualified business income.
Qualified business income deduction regs. and other guidance issued
The package includes final regulations, guidance on how to calculate W-2 wages, a safe-harbor rule for rental real estate businesses, and new proposed rules on the treatment of previously suspended losses.
Some individual taxpayers get relief from underpayment penalty
The relief applies to individuals whose tax withheld and estimated tax payments equal at least 85% of the tax shown on their 2018 tax return.
IRS announces Free File launch
The IRS announced that its Free File program, which provides free electronic filing options to moderate-income taxpayers, opened Jan. 11 and will operate through Oct. 15.
Tackling TCJA changes this tax season
An altered landscape awaits CPA preparers and their clients.
Filing season quick guide — tax year 2018
Download our annual quick guide, a tax season reference highlighting dollar thresholds, tax tables, standard amounts, credits, and deductions.
