Federal & State Tax News

AZ – Deduction allowed for net capital gain and addition required for net capital loss from exchange of legal tender

Monday, June 19, 2017

For taxable years beginning after December 31, 2017, Arizona individual and corporate income tax deductions are allowed for any net capital gain included in Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another. Also, an addition to Arizona gross income is required for […]

AR – Taxpayer was domiciled in state and taxable as resident

Monday, June 19, 2017

A taxpayer was domiciled in Arkansas and was taxable as a resident of Arkansas for personal income tax purposes for 2014, because she failed prove that she changed her domicile to another state before or during the 2014 tax year. Although the taxpayer established that she primarily lived and worked outside the state, she retained […]

No equitable relief from missing tax court deadline for innocent spouse review

Thursday, June 1, 2017

The Third Circuit Court of Appeals has found that the Tax Court properly dismissed for lack of jurisdiction an individual’s petition for review of the IRS’s denial of innocent spouse relief, which was submitted outside of the 90-day deadline specified by Code Sec. 6015(e)(1)(A). Any equitable reasons for missing the 90-day deadline under Code Sec. […]

IRS releases guidance on payroll tax credit for small business research expenses

Monday, May 1, 2017

Interim guidance describes for small businesses the new payroll tax credit election for increasing research expenses. The IRS also provided a special rule for 2016 for small businesses that did not claim the credit but want to claim the credit before year-end 2017. The interim guidance reflects changes made to the research credit by the […]

Tax refund offsets may be used toward unpaid debts

Monday, April 3, 2017

A taxpayer who incurs an unpaid debt may notice a reduction in his or her federal tax refund. The Treasury Offset Program is allowed to use all or part of a taxpayer’s federal refund to settle unpaid federal or state debts, to include unpaid individual shared responsibility payments. For example, the IRS is prohibited from […]