Procedures for Puerto Rico residents to claim a 2021 child tax credit
The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.
Individual Income Taxation
Eleventh Circuit: Judicial extinguishment proceeds formula invalid
The IRS’s interpretation of a conservation easement rule is struck down.
Adopting a child: Tax planning considerations
Parents pursuing an adoption can use a CPA’s advice.
SALT cap challenge is denied Supreme Court review
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.
Mortgage interest credit aids first-time homebuyers
The subsidy improves affordability for lower-income families.
Losses from millionaire’s donkey breeding allowed
A taxpayer convinces the Tax Court he entered into the activity for profit despite not making one and having substantial other income.
Billionaire minimum tax could pose difficulties
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.
Biden proposes higher corporate tax rate, 20% billionaire minimum tax
Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.
Individual taxpayers must answer cryptoasset question, IRS notes
Front and center on Form 1040 is whether taxpayers had a virtual currency transaction.
New, lower Form 1099-K threshold prompts cautions, criticisms
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.
Don’t try this at home
Gold coins kept in taxpayer’s residence caused taxable IRA distributions.
Paradise postponed
Taxpayer’s organic oasis was not yet a going concern, the Tax Court holds.
Carried interest reporting FAQs posted
Guidance includes sample worksheets and instructions for applicable passthrough entities and taxpayers.
Tax treatment of COVID-19 homeowner relief payments clarified
Payments are excluded from gross income; a safe harbor is provided for itemized deductions.
How nonfilers can claim 2021 tax credits
Procedures are available for individuals not otherwise required to file a return to claim three common tax credits.
IRS issues procedures for employee status determinations
Prior guidance on Tax Court jurisdiction over IRS determinations of employee vs. independent contractor status is modified and superseded.
FAQs address calculation and reconciliation of recovery rebate credit
Economic impact payments taxpayers received during the tax year must be netted against a tax credit on 2021 returns.
Updated FAQs address 2021 child tax credit and advance payments
FAQs on the Service’s website are updated for preparing 2021 returns.
Practitioners wary of IRS service lapses as tax season begins
Continuing problems in timely processing of returns and correspondence may threaten more headaches.
What’s new for 2022 in federal taxes
A law change and some regulations take effect while an array of provisions expire.
