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Tax Topics

The latest industry insights from Schmidt & Schmidt.

Tax debt from late return is held discharged

Posted on Jul 1, 2022

A bankruptcy court holds that the taxpayers’ return was an honest and reasonable attempt to comply with the tax law.


Posted on Jun 27, 2022

Regs. proposed for present value of estate deductions

Posted on Jun 27, 2022

Administrative expenses and claims against estates allowable under Sec. 2053 beyond a three-year grace period would be discounted for current deduction, under proposed rules issued by the IRS.


Posted on Jun 23, 2022

IRS extends e-filing to more 1040-series amended returns

Posted on Jun 23, 2022

Nonresident alien amended returns and those for Puerto Rico residents are added; superseding returns can be designated.


Posted on Jun 10, 2022

Midyear IRS mileage rate increase follows precedent, recent pleas

Posted on Jun 10, 2022

Last week’s bump was the third midyear increase in the past 14 years, and it came after members of Congress wrote to the IRS about rising fuel prices.


Posted on Jun 9, 2022

Standard mileage rate to increase for last half of 2022

Posted on Jun 9, 2022

Acknowledging recent sharp increases in gasoline prices, the IRS announced a rare midyear increase in the standard mileage rate, starting July 1.

‘OIC mills’ and ‘ghost’ preparers in ‘Dirty Dozen’

Posted on Jun 7, 2022

Sketchy operations target tax debtors for offers in compromise, and preparers who remain anonymous on returns generally have something to hide, the IRS says in its ongoing series.


Posted on Jun 7, 2022

More ‘Dirty Dozen’: Tax refund theft and fake charity appeals

Posted on Jun 6, 2022

The IRS continued its annual series, highlighting threats to ordinary taxpayers from would-be thieves.


Posted on Jun 6, 2022


Posted on Jun 1, 2022

Abusive CRATs and Maltese IRAs among ‘Dirty Dozen’ tax scams

Posted on Jun 1, 2022

The first installment of the Internal Revenue Service’s annual feature focuses on four abusive transactions and arrangements.

Tax advice for clients who day-trade stocks

Posted on Jun 1, 2022

Communicate the benefits of the mark-to-market election.

Changes to Form 1099-K

Posted on Jun 1, 2022

Recent changes in reporting requirements will lead to mistakes, but taxpayers should not ignore them.


Posted on Jun 1, 2022


Posted on Jun 1, 2022

IRS mostly correct on recovery rebate credits, TIGTA says

Posted on May 23, 2022

The IRS administered the recovery rebate credit correctly for all but 0.7% of returns in the 2021 filing season, the Treasury Inspector General for Tax Administration found.

Procedures for Puerto Rico residents to claim a 2021 child tax credit

Posted on May 9, 2022

The IRS provides two simplified filing methods for bona fide residents of Puerto Rico to claim the child tax credit.

Adopting a child: Tax planning considerations

Posted on May 1, 2022

Parents pursuing an adoption can use a CPA’s advice.

Eleventh Circuit: Judicial extinguishment proceeds formula invalid

Posted on May 1, 2022

The IRS’s interpretation of a conservation easement rule is struck down.

SALT cap challenge is denied Supreme Court review

Posted on Apr 18, 2022

The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.

Losses from millionaire’s donkey breeding allowed

Posted on Apr 1, 2022

A taxpayer convinces the Tax Court he entered into the activity for profit despite not making one and having substantial other income.

Mortgage interest credit aids first-time homebuyers

Posted on Apr 1, 2022

The subsidy improves affordability for lower-income families.

Billionaire minimum tax could pose difficulties

Posted on Mar 29, 2022

The proposal in President Joe Biden’s fiscal 2023 budget to impose a 20% minimum tax on certain high-wealth individuals is seen as likely to raise thorny issues and likely even constitutional challenges.

Biden proposes higher corporate tax rate, 20% billionaire minimum tax

Posted on Mar 28, 2022

Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.

Individual taxpayers must answer cryptoasset question, IRS notes

Posted on Mar 22, 2022

Front and center on Form 1040 is whether taxpayers had a virtual currency transaction.

New, lower Form 1099-K threshold prompts cautions, criticisms

Posted on Mar 10, 2022

The new, lower $600 reporting threshold for reporting credit card and cash payment app transactions will likely lead to problems for taxpayers and payment settlement entities, the Taxpayer Advocate Service warns.

Paradise postponed

Posted on Mar 1, 2022

Taxpayer’s organic oasis was not yet a going concern, the Tax Court holds.

Don’t try this at home

Posted on Mar 1, 2022

Gold coins kept in taxpayer’s residence caused taxable IRA distributions.

Carried interest reporting FAQs posted

Posted on Feb 1, 2022

Guidance includes sample worksheets and instructions for applicable passthrough entities and taxpayers.

Tax treatment of COVID-19 homeowner relief payments clarified

Posted on Feb 1, 2022

Payments are excluded from gross income; a safe harbor is provided for itemized deductions.

How nonfilers can claim 2021 tax credits

Posted on Jan 26, 2022

Procedures are available for individuals not otherwise required to file a return to claim three common tax credits.

IRS issues procedures for employee status determinations

Posted on Jan 19, 2022

Prior guidance on Tax Court jurisdiction over IRS determinations of employee vs. independent contractor status is modified and superseded.

FAQs address calculation and reconciliation of recovery rebate credit

Posted on Jan 14, 2022

Economic impact payments taxpayers received during the tax year must be netted against a tax credit on 2021 returns.

Updated FAQs address 2021 child tax credit and advance payments

Posted on Jan 12, 2022

FAQs on the Service’s website are updated for preparing 2021 returns.

Practitioners wary of IRS service lapses as tax season begins

Posted on Jan 11, 2022

Continuing problems in timely processing of returns and correspondence may threaten more headaches.

What’s new for 2022 in federal taxes

Posted on Jan 6, 2022

A law change and some regulations take effect while an array of provisions expire.

Like-kind exchanges of real property

Posted on Jan 1, 2022

New limits are considered for Sec. 1031 transactions.

Alimony deduction allowed for health care premiums purchased with pretax wages

Posted on Jan 1, 2022

The Tax Court denies IRS arguments of a ‘double deduction.’

Line items

Posted on Jan 1, 2022

SSA wage base increases for 2022 ... IRS Chief Counsel outlines R&D credit refund requirements ... 6-year limitation period applies to entire return

Standard mileage rates to go up in 2022

Posted on Dec 17, 2021

The IRS issued the annual update of the mileage rate taxpayers may use to compute their deductible automobile costs.

Line items

Posted on Dec 1, 2021

Private tax debt collection contracts awarded ... New per diem travel rates ... Regs. authorize collection of excess sick and family leave credits

Meal portion of per diem allowance can be treated as attributed to a restaurant

Posted on Nov 16, 2021

An IRS notice provides a special rule for the temporary 100% deduction.

Changing ways of working call for changing employment and tax policy

Posted on Nov 12, 2021

Annette Nellen examines possible tax policy implications as more people shed tradition work roles and become “digital nomads.”

IRS issues inflation adjustments for 2022 returns

Posted on Nov 10, 2021

The IRS issued updated income tax brackets and other inflation-adjusted amounts under 62 Code sections, including a new standard deduction amount.

Tax treatment of COVID-19 homeowner relief payments clarified

Posted on Nov 9, 2021

A revenue procedure clarifies Homeowner Assistance Fund payments are excluded from gross income and gives a safe harbor for computing certain itemized deductions.

FAQ guidance on income change reporting for advance child tax credit

Posted on Nov 9, 2021

The IRS updated its FAQs to explain whether and how to report changes to projected 2021 income for taxpayers receiving advance child tax credit payments.

Imprisonment does not constitute reasonable cause

Posted on Nov 1, 2021

The reasonable-cause defense was denied even though the attorney of a jailed taxpayer had assured the taxpayer the returns were filed and taxes were paid.

New FAQs cover interplay of unemployment income exclusion and credits

Posted on Nov 1, 2021

The IRS advises on the effects on tax credits and the Free Application for Federal Student Aid and what taxpayers should do.

IRS addresses taxpayer reliance on FAQs, will save copies of old FAQs

Posted on Oct 15, 2021

Taxpayers who reasonably rely on FAQs posted by the Internal Revenue Service will have a reasonable-cause penalty defense under a new policy announced by the agency on Friday. The IRS will also keep original versions of FAQs on its site after it updates them.

Refund of minister’s self-employment taxes denied

Posted on Oct 1, 2021

The taxpayers did not properly claim an exemption, the court holds.