In a recent U.S. Tax Court decision, the IRS prevailed over a taxpayer who argued that the IRS erroneously disallowed claims of certain tax credits on his original and amended tax returns. The credits included the Child Tax Credit (CTC), Additional Child Tax Credit (ACTC) and Earned Income Tax Credit (EITC). Regarding the CTC and […]

Four new Technical Guides (TGs) about tax-exempt organizations and government entities are now available from the IRS. The guides are designed to help IRS employees. However, governing boards, tax-exempt group employees and others may also find them useful in understanding the tax regulations they must adhere to. Here are the latest TGs by topic: TG […]

U.S. Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel met recently to discuss the tax agency’s Strategic Operating Plan (SOP). With nearly $60 billion of new funding over 10 years, Yellen said modernization is a priority. That includes retiring outdated computer systems, such as those used to process returns. Other improvements will include the […]

Is a pharmaceutical company entitled to deduct legal fees incurred while defending itself against patent infringement lawsuits as ordinary and necessary business expenses? In a recent case, the U.S. Tax Court said “yes,” but the IRS appealed. The IRS contended that the company should have treated the legal expenses as capital expenses because they were […]

The IRS’s Customer Callback (CCB) system is intended to help taxpayers avoid waiting on hold when they call the tax agency. If callers provide their numbers, IRS employees will call them back. First introduced in 2019, CCB functionality was expanded in early 2023. Recently, the Treasury Inspector General for Tax Administration (TIGTA) audited the system […]