April 08, 2014
Article Co-Authored by Donald Zidik, Tax & Business Services Senior Manager, "Individual Taxation: Digest of Recent Developments: Part II," Featured in AICPA's The Tax Advisor
- The Tax Court held that a taxpayer with a home-based tax preparation business was not entitled to deduct lodging expenses incurred to get away from her clients during tax season because they were nondeductible personal expenses.
- A nonresident alien who filed a joint income tax return was not subject to the Sec. 6048 foreign trust reporting requirements because he did not make a proper election under Sec. 6013(g).
- In Rev. Proc. 2013-34, the IRS revised its criteria for granting equitable innocent spouse relief under Sec. 6015(f) or 66(c). Among other changes, the new procedure gives greater weight to the presence of abuse in determining whether relief should be granted.
- The IRS announced that it will no longer argue that the Tax Court should limit its review of Sec. 6015(f) cases to an abuse of discretion or that the court should limit its review to the administrative record.
This is the second of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance. The items are arranged in Code section order. The first part, which appeared in the March issue, covered Sec. 1, Tax Imposed, through Sec. 170, Charitable, etc., Contributions and Gifts. Part II covers developments from Sec. 183, Activities Not Engaged in For Profit, through Sec. 7703, Determination of Marital Status.