Federal & State Tax News

Future pension payouts not counted as asset in determining insolvency exclusion

Wednesday, March 1, 2017

The Tax Court, in Schieber v. Commissioner, TC Memo. 2017-32, found that the right to a continuing monthly payment state pension plan was not an asset in determining insolvency for purposes of exclusion from cancellation of indebtedness income. The court rejected the IRS’s argument that the ability of the taxpayers to use their monthly pension […]

Dentist persuades Tax Court of material participation in real estate business

Wednesday, March 1, 2017

The Tax Court determined, in Zarrinnegar v. Commissioner, TC Memo. 2017-34, that a dentist by profession, was a real estate professional, and therefore could deduct rental real estate losses. As such, the losses were not barred by the passive activity rules. The taxpayer was a dentist married to another dentist with whom he shared a […]

Tax returns lacking ACA coverage status will not be rejected

Wednesday, March 1, 2017

The IRS has announced that it will continue to process individual returns that do not report the taxpayer’s health coverage status under the Affordable Care Act (ACA). The IRS will accept returns that fail to indicate coverage, an exemption or a shared responsibility payment. The IRS had planned to reject these returns (known as “silent […]

IRS releases official maximum FMVs for 2017 cents-per-mile/fleet-average valuation

Wednesday, February 1, 2017

The IRS has announced the maximum fair market value (FMV) amounts that designate the proper valuation rule for employers calculating fringe benefit income from employer-provided automobiles, trucks, and vans first made available for personal use in 2017. Taxpayers with employer-provided vehicles within the designated FMV amounts may apply the vehicle cents-per-mile rule or fleet average […]

IRS finalizes higher user fees for installment agreements

Tuesday, January 3, 2017

As of January 1, 2017, some taxpayers may notice a marked rise in user fees associated with installment agreements, as guidance has released that finalized the higher user fees for such agreements. The user fee for installment agreements is now at $225. However, as expected, lower-income taxpayers remains the same. Before the January 1 uptick, […]