Divorcing or separating taxpayers need to be aware of how the breakup of a marriage may affect their 2019 tax returns. The tax treatment of alimony and separation payments changed for divorce and separation agreements that occurred (or, in some cases, were modified) after 2018. Prior to the Tax Cuts and Jobs Act, alimony was […]

The IRS has concluded that an S corporation’s employee stock compensation plan didn’t create a second class of stock. In a Private Letter Ruling (PLR), the tax agency determined that, in this case, the transfer and repurchase restrictions on the plan’s shares were disregarded when determining whether the shares awarded under the plan had identical […]

In an Action on Decision (AOD), the IRS has acquiesced in a U.S. Tax Court decision involving deductibility of pregame meals at away city hotels by the Boston Bruins hockey team. This means the IRS will follow the court’s decision in cases when “facts are substantially identical.” In a 2017 case, the court ruled the […]

A taxpayer who tried to challenge the constitutionality of the Tax Cuts and Jobs Act (TCJA) lost in court. He alleged that the TCJA violated the 14th Amendment because it creates “gross inequality” in taxation. A U.S. District Court concluded that the taxpayer didn’t have standing to challenge the unfairness of the TCJA, so the […]

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Millions of dollars in retirement savings become unclaimed property each year, according to a new Government Accountability Office (GAO) report (https://bit.ly/2V6uotr). It says that federal action is needed to clarify the tax treatment of unclaimed 401(k) plans and individual retirement accounts transferred to states. According to the GAO, the IRS and Labor Dept. have issued […]

If you call the IRS, be prepared to identify yourself. Tax-related identity theft is on the rise. That’s why the IRS says its call center professionals take great care to ensure they discuss personal information only with taxpayers (or authorized representatives). Before calling the IRS, have this information ready: your Social Security number or individual […]

A White House press release announced that President Trump has signed an executive order (EO) aimed at strengthening retirement security. The goal of the EO is to help ensure that American workers are financially prepared to retire. This includes, among other things, expanding access to multiple employer retirement plan options and improving the effectiveness and […]

The IRS’s determination that a taxpayer had unreported wage and IRA distribution income was upheld. For two years, he’d filed a tax return on time that reported zero income and zero liability. However, he’d received wages from his job as an engineer and also distributions from an IRA. The taxpayer didn’t dispute that he’d received […]