The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.
Individual Income Taxation
The IRS’s interpretation of a conservation easement rule is struck down.
Parents pursuing an adoption can use a CPA’s advice.
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.
The subsidy improves affordability for lower-income families.
A taxpayer convinces the Tax Court he entered into the activity for profit despite not making one and having substantial other income.
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.
Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.
Front and center on Form 1040 is whether taxpayers had a virtual currency transaction.
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.
Gold coins kept in taxpayer’s residence caused taxable IRA distributions.
Taxpayer’s organic oasis was not yet a going concern, the Tax Court holds.
Guidance includes sample worksheets and instructions for applicable passthrough entities and taxpayers.
Payments are excluded from gross income; a safe harbor is provided for itemized deductions.
Procedures are available for individuals not otherwise required to file a return to claim three common tax credits.
Prior guidance on Tax Court jurisdiction over IRS determinations of employee vs. independent contractor status is modified and superseded.
Economic impact payments taxpayers received during the tax year must be netted against a tax credit on 2021 returns.
FAQs on the Service’s website are updated for preparing 2021 returns.
Continuing problems in timely processing of returns and correspondence may threaten more headaches.
A law change and some regulations take effect while an array of provisions expire.