September 01, 2014
Article Co-Authored by Donald Zidik, Tax & Business Services Director, "New Directions in Individual Taxation" Featured in The Tax Adviser
Co-Authored by Donald Zidik, Tax & Business Services Director
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance. The items are arranged in Code section order.
- The Tax Court held that a taxpayer in a community property state whose husband, after the couple separated but before they divorced, formed a company she did not know about, had to report her share of the community income from the company because they were technically still married.
- In a change of position, the IRS announced that qualified Medicaid waiver payments will be treated as Sec. 131 nontaxable qualified foster care payments regardless of whether the care provider is related to the eligible individual.
- The Tax Court found that despite a conciliation agreement that indicated he was not his son's custodial parent, a taxpayer who proved his son spent more nights with him than with the mother was entitled to the dependency exemption.
- The IRS issued a notice on virtual currency that provides that general tax principles that apply to property transactions will apply to virtual currency and discusses the practical results of this treatment.