Individual Taxation: Digest of Recent Developments Part 2

The Tax Adviser logo Published April 01, 2014  by David R. Baldwin, CPA; Lawrence H. Carlton, CPA; Karl L. Fava, CPA; Donna Haim, CPA; Jonathan Horn, CPA; Susanne Morrow, CPA; S. Miguel Reyna, CPA; Kenneth L. Rubin, CPA; Kaye F. Sheridan, DBA, CPA; Amy M. Vega, CPA; Donald J. Zidik Jr., CPA

  • 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.   Continue reading full article…………………………….