The Tax Adviser
Several actions by Congress and the IRS aimed to reduce improper claims of the earned income tax credit by increasing preparer penalties and due diligence procedures. * Litigation over restricted stock-based compensation focused on the proper date of the stock's market valuation and the effect of company and SEC restrictions on disposition of the stock. * The Tax Court applied the IRS's recent practice of allowing professional gamblers to deduct ordinary and reasonable nonwagering business expenses over their gambling winnings, overturning a 1951 case holding. * The Tax Court also held that limited partners of a limited partnership who perform services for the partnership in their capacity as partners may be liable for self-employment taxes despite a general statutory exemption from self-employment income for limited partners' income. Reprinted by permission of the publisher.
Annette M. Nellen, E. Cook, K. Fava, E. Gershman, J. Hagy, J. Horn, D. Moore, D. Newman, T. Newman, and K. Rubin. "Year-End Individual Taxation Report" The Tax Adviser (2011): 830-841.