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Federal Income Tax Update: Part 2

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Keith A. Wood

I. Audit Statistics: What Are Your Chances of Being Audited? The 2022 Internal Revenue Service Data Book contains audit statistics for years 2012 through…

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The Statute of Collections

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John G. Hodnette

Section 6501 provides the statute of limitations for the IRS to assess additional tax. Equally important is Section 6502, which provides the statute of…

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How Do 529 Plans Work?

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John G. Hodnette

Section 529 provides for the creation of qualified tuition programs, better known as 529 Plans. These programs are tax-advantaged investment vehicles through…

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Federal Income Tax Update

Keith, a white man with brown hair, wears wire-rimmed glasses, a white shirt and black jacket.
Keith A. Wood

I. Shareholders of Bankrupt S Corporation Failed to Abandon Their Stock; Yaguda v. Commissioner, TC Summary Opinion 2022-21. Mr. and Mrs. Yaguda owned stock…

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Taxation of Options to Purchase Property

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John G. Hodnette

A payment for an option to purchase property is not a taxable event to either party upon the grant of the option. See Virginia Iron Coal & Coke Co. v.…

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Requests for Tax-Exempt Organization Annual Returns

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John G. Hodnette

Section 6104(d)(1)(B) provides a right to taxpayers to request the application for tax exemption and annual informational returns for the last three years of…

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Section 1377(a)(2) Elections for S Corporations

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John G. Hodnette

Section 1377(a)(1) generally provides each shareholder of an S corporation is allocated income or loss of the corporation by (a) assigning an equal portion of…

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Qualified Charitable Distributions from IRAs

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John G. Hodnette

Section 401(a)(9) requires annual minimum distributions from traditional IRAs beginning in the year the owner of the account attains age 72 or, if later, the…

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Federal Income Tax Update

Keith, a white man with brown hair, wears wire-rimmed glasses, a white shirt and black jacket.
Keith A. Wood

This is the last of three installments of this article. I. Bookkeeper Falls Victim to Section 6672 Trust Fund Recovery Penalty; Kazmi, TC Memo 2022-13. In…

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New North Carolina PTE Tax Can Reduce Federal Income Taxes

John, a white man with dark brown hair, wears a pale blue shirt, lime green and blue tie, and black suit.
John G. Hodnette

The Tax Cuts and Jobs Act of 2017 capped the deduction available to individual taxpayers under Section 164 to $10,000 for 2017 through 2025. That deduction…

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