TaxEar›Changes
What changed
Every change recorded on a topic page appears here, newest first. Entries marked material alter what a practitioner would do: a figure, a deadline, a rule. Editorial work is listed too, unmarked. To be emailed when a page you rely on records a material change, follow it from the page itself with Practitioner alerts.
Material changes
- Proper business type, and the use of classification codes and year to year comparison: Corrected the Corrigan Ventures timing scenario: a Form 8832 effective date more than 12 months after filing is clamped to 12 months after filing under Reg. § 301.7701-3(c)(1)(iii), as the page's figure already stated; it does not fall back to the filing date.
- Interpretation and analysis of CP-2000 notice and correspondence audits: Qualified the flat "jurisdictional" claim about § 6213(a)'s 90-day deadline: added Culp v. Commissioner, 75 F.4th 196 (3d Cir. 2023), which holds the deadline nonjurisdictional and subject to equitable tolling in the Third Circuit.
Everything
- Corporations: Added §§ 951A, 1211 and 1212 to authorities[] — already cited in the body (the GILTI inclusion and the corporate capital-loss rules) but missing from the frontmatter list. Opened and read all three at law.cornell.edu; no change to the claims themselves. § 951A's authority title uses the section's current post-2025 heading ("Net CFC tested income"), not the repealed GILTI-era one, matching the body's own note at 227 that the inclusion was renamed.
- Hobby versus business determination and loss limitations: Added § 212 to authorities[] — already cited in the body's § 183(c) definition-by-exclusion but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- S corporations: Added § 318 to authorities[] — already cited in the body's 2-percent-shareholder attribution rule but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Gross estate, taxable estate (calculations and payments), unified credit, life insurance, and filing requirements: Added § 1014 to authorities[] — already cited in the body's step-up-in-basis point but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Annual exclusion: Added §§ 2001(b)(1)(B) and 2513 to authorities[] — already cited in the body (adjusted taxable gifts at death, and gift-splitting) but missing from the frontmatter list. Opened and read both at law.cornell.edu; no change to the claims.
- Distinctions between FBAR and Form 8938 requirements: Added § 6501(c)(8) to authorities[] — already cited in the body's open-assessment-period point but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Ownership of a foreign corporation (GILTI, IRC Section 965 transition tax): Added § 958 to authorities[] — already cited in the body's indirect/constructive ownership points but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Additional Medicare tax: Added § 1402(a)(12) to authorities[] — already cited in the body's point that the additional tax is disregarded in both the net-earnings reduction and the § 164(f) half-deduction, but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Uncollected Social Security and Medicare tax: Added § 224 to authorities[] — already cited in the body's point that the new qualified-tips deduction reaches income tax only and does not affect FICA, and in Check-yourself question 5 — but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Marriage and divorce: Added § 6013(d)(3) to authorities[] — already cited in the body's joint-and-several-liability point but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- Reporting obligations for individuals: Added § 6721 to authorities[] — already cited in the body's penalty discussion but missing from the frontmatter list. Opened and read at law.cornell.edu; no change to the claim.
- IRS Collection Financial Standards: Reworded Check-yourself Q2 as an applied scenario rather than a bare local-vs-national list, to read further from a bank item testing the same fact.
- material Proper business type, and the use of classification codes and year to year comparison: Corrected the Corrigan Ventures timing scenario: a Form 8832 effective date more than 12 months after filing is clamped to 12 months after filing under Reg. § 301.7701-3(c)(1)(iii), as the page's figure already stated; it does not fall back to the filing date.
- Information to be furnished to the IRS: Narrowed the § 7525(b) tax-shelter carve-out to its actual scope — a written communication made in connection with promoting participation in a tax shelter, not every communication concerning one. NOTE: made from a search-engine snippet and training recall, not by opening § 7525 directly — this session's network access to primary legal sources was blocked. Re-verify against the statute text on the next review.
- material Interpretation and analysis of CP-2000 notice and correspondence audits: Qualified the flat "jurisdictional" claim about § 6213(a)'s 90-day deadline: added Culp v. Commissioner, 75 F.4th 196 (3d Cir. 2023), which holds the deadline nonjurisdictional and subject to equitable tolling in the Third Circuit.
- Interpretation and analysis of CP-2000 notice and correspondence audits: NOTE: the Culp v. Commissioner citation and holding above were added from search-engine results and training recall, not by opening the opinion or a court reporter directly — this session's network access to primary legal sources was blocked. Verify the citation, holding, and current circuit treatment against the opinion itself on the next review.
- IRS Collection Summons (e.g., purposes): Added § 7605(b)'s 'after investigation' condition, missing throughout the page. NOTE: this correction was made from a search-engine snippet and training recall, not by opening § 7605 directly — this session's network access to primary legal sources was blocked. Re-verify against the statute text on the next review.
- Offer in compromise: grounds, payment terms, and the 24-month rule: Added animated diagram motion, a live Federal Register related-developments widget, a Strategy notes section, and an interaction scenario.
- Corporations: Added a plain-language summary, glossary marks, and typed scenarios.
- Employer identification number: Added a plain-language summary, glossary marks, and typed scenarios.
- Accounting methods: Added a plain-language summary, glossary marks, and typed scenarios.
- Accounting periods (tax year): Added a plain-language summary, glossary marks, and typed scenarios.
- Entity type default classifications and elections: Added a plain-language summary, a decision diagram of the default classifications, glossary marks, and typed scenarios.
- Hobby versus business determination and loss limitations: Added a plain-language summary, a decision diagram of the § 183(d) presumption, glossary marks, and typed scenarios.
- LLCs: Added a plain-language summary, a timeline diagram of the election effective-date window and the 60-month re-election bar, glossary marks, and typed scenarios.
- Partnerships and qualified joint ventures (QJV): Added a plain-language summary, a decision diagram of the three qualified joint venture conditions, glossary marks, and typed scenarios.
- S corporations: Added a plain-language summary, a decision diagram of the five S corporation eligibility conditions, glossary marks, and typed scenarios.
- Reporting requirements (e.g. Forms W2, W-4, Form 1099): Added a plain-language summary, a decision diagram of the 1099-K dual test, glossary marks, and typed scenarios.
- Sole proprietorships: Added a plain-language summary, glossary marks, and typed scenarios. No diagram: the content is a series of negative definitions (no entity, no return, no separate date) rather than a decision, threshold, or timeline, and a forced diagram here would not clarify anything a diagram archetype actually answers.
- Tax-exempt entities and associations: Added a plain-language summary, a timeline diagram of automatic revocation, glossary marks, and typed scenarios.
- Closely held corporations: Added a plain-language summary, glossary marks, and typed the four existing scenarios (boundary, interaction, fails, baseline).
- IRC Section 351 exchange: Added a plain-language summary, a decision diagram of the control test and the boot rule, glossary marks, and typed the four existing scenarios (fails, boundary, baseline, interaction).
- Controlled groups: Added a plain-language summary, glossary marks, and typed the four existing scenarios (interaction, boundary, fails, procedural).
- Services rendered to a corporation in return for stock: Added a plain-language summary, glossary marks, and typed the four existing scenarios (timing, fails, interaction, baseline).
- Transfer and/or receipt of money or property in addition to corporate stock: Added a plain-language summary, typed scenarios, and glossary marks.
- Transfer of property subject to indebtedness: Added a plain-language summary, a decision diagram of the three-step liability analysis, typed scenarios, and glossary marks.
- Basis of partner's interest: Added a plain-language summary, typed scenarios, and glossary marks.
- Contribution of property and/or services to partnership (e.g., partnership's basis, property subject to indebtedness): Added a plain-language summary, typed scenarios, and glossary marks.
- Disposition of partner's interest: Added a plain-language summary, a decision diagram of the inside-basis adjustment rules, typed scenarios, and glossary marks.
- Dissolution of partnership (e.g., sale, death of partner): Added a plain-language summary, a decision diagram of the § 736(b)(3) carve-out test, typed scenarios, and glossary marks.
- Family partnerships: Added a plain-language summary, glossary marks, and typed scenarios.
- Filing requirements, due dates, penalties, and audit notice requirements: Added a plain-language summary, a timeline diagram of the filing and audit clock, glossary marks, and typed scenarios.
- Partner's dealings with partnership (e.g., exchange of property, guaranteed payments): Added a plain-language summary, glossary marks, and typed scenarios.
- Partnership formation (e.g., partnership agreement, general vs. limited partners, capital contributions): Added a plain-language summary, glossary marks, and typed scenarios.
- Partnership cancellation of debt: Added a plain-language summary, glossary marks, and typed scenarios.
- Partnership income, expenses, distributions, and flow-through (e.g.,self- employment income): Added a plain-language summary, glossary marks, and typed scenarios.
- Partnership level audit and opt-out: Added a plain-language summary, glossary marks, and two typed scenarios (baseline, procedural) so all six scenarios carry distinct types.
- Accumulated earnings tax: Added a plain-language summary, glossary marks, and typed scenarios.
- Corporate minimum tax credit: Added a plain-language summary, glossary marks, and typed scenarios.
- Earnings and profits: Added a plain-language summary, glossary marks, and typed scenarios.
- Estimated tax payments: Added a plain-language summary, glossary marks, and typed scenarios.
- Filing requirements, due dates, and penalties: Added a plain-language summary, a timeline diagram of the June 30 filing-date changeover, glossary marks, and typed scenarios.
- Liquidations and stock redemptions: Added a plain-language summary, glossary marks, and typed scenarios.
- Shareholder dividends, distributions, and recognition requirements: Added a plain-language summary, glossary marks, and typed the four existing scenarios (baseline, boundary, interaction, timing).
- Special deductions and credits (e.g., dividends received deduction, charitable deduction): Added a plain-language summary, glossary marks, and typed the four existing scenarios (fails, boundary, interaction, timing).
- Debt discharge: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, procedural) so all five scenarios carry distinct types.
- Election procedure: Added a plain-language summary, a timeline diagram of the election window and late-relief rule, glossary marks, and a fifth typed scenario (timing) covering a late election deemed effective the following year.
- Income, expenses and separately stated items: Added a plain-language summary, glossary marks, and two typed scenarios (fails, interaction) so all five scenarios carry distinct types.
- Non-cash distributions: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, timing) so all five scenarios carry distinct types.
- Shareholder's basis: Added a plain-language summary, glossary marks, and a typed scenario showing the open account debt threshold on both sides of the line.
- Treatment of distributions: Added a plain-language summary, glossary marks, and a typed scenario showing a distribution one dollar over the account balance crossing into dividend treatment.
- Requirements to qualify (e.g., qualifying shareholders): Added a plain-language summary, a decision diagram of the five eligibility gates, glossary marks, and two typed scenarios (baseline, procedural) covering all six taxonomy types.
- Revocation, termination and reinstatement: Added a plain-language summary, a decision diagram of the three ways an election ends, glossary marks, and a typed scenario showing the revocation and mandatory-close rules colliding in the same S termination year.
- ACA compliance: Added a plain-language summary, glossary marks, and a fourth typed scenario on the information-reporting penalties.
- Advice on accounting methods and procedures (e.g., explanation of requirements): Added a plain-language summary, glossary marks, and a fourth typed scenario on filing a method change through the automatic procedure.
- Comingling (e.g., personal usage of business accounts, separation of business and personal accounts): Added a plain-language summary, glossary marks, and a fourth typed scenario on the horse-activity variant of the profit presumption.
- Deductions and credits for tax planning (e.g., timing of income and expenses, NOL, depreciation versus IRC Section 179 versus bonus depreciation): Added a plain-language summary, glossary marks, and a fourth typed scenario on timing a purchase across a loss year and a profitable one.
- Life cycle of the business (e.g., formation, dissolution): Added a plain-language summary, a timeline diagram of the four life-cycle moments, glossary marks, and a fourth typed scenario on the built-in gains tax after an S election.
- Payments and deposit obligations (e.g., employment tax, excise tax): Added a plain-language summary, a threshold diagram of the deposit-schedule dollar lines, glossary marks, and a fourth typed scenario on the de minimis filing relief.
- Record-keeping requirements (e.g., mileage log, accountable plans): Added a plain-language summary, glossary marks, and a fourth typed scenario on the reasonable-period standard beyond the fixed-date safe harbour.
- Related party transactions: Added a plain-language summary, glossary marks, and a fourth typed scenario showing a related-party rent transaction priced at arm's length that draws no allocation.
- Reporting and filing obligations (e.g., extended returns and potential penalties, international information returns, Form 1099 series, Form 8300): Added a plain-language summary, glossary marks, and a fourth typed scenario walking through a corporate extension that left part of its payment condition unmet.
- Selection of business entity (e.g., benefits and detriments): Added a plain-language summary, an eligibility decision diagram for the S election, glossary marks, and a fourth typed scenario on the shareholder-count boundary.
- Transfer of property in or out of the business (e.g., contributed property, distributions): Added a plain-language summary, glossary marks, and a fourth typed scenario contrasting a distribution made just inside and just outside the seven-year window.
- Type of industry (e.g., specified service business owners): Added a plain-language summary, glossary marks, and a fourth typed scenario showing that specified-service status is irrelevant below the section 199A threshold.
- Worker classification (i.e. independent contractor versus employee, outside sales, full-time vs part-time): Added a plain-language summary, a decision diagram of the classification chain, glossary marks, and a timing scenario.
- Balance sheet (e.g., proofing beginning and ending balances, relationship to income statement and depreciation): Added a plain-language summary, glossary marks, and typed the existing scenarios.
- Depreciation recovery (e.g., recapture, IRC Section 280F): Added a plain-language summary, glossary marks, and typed the existing scenarios.
- Income statement: Added a plain-language summary, glossary marks, and typed the existing scenarios.
- Loans to and from owners: Added a plain-language summary, glossary marks, and a boundary scenario on the de minimis threshold.
- Method of accounting and changes (e.g., accrual, cash, hybrid, Form 3115): Added a plain-language summary, glossary marks, and typed the existing scenarios.
- Pass-through activity (e.g., K-1, separately stated items, non-deductible expenses): Added a plain-language summary, glossary marks, and three typed scenarios (boundary, timing, procedural) alongside the existing three.
- Proper business type, and the use of classification codes and year to year comparison: Added a plain-language summary, glossary marks, and two typed scenarios (baseline, timing) alongside the existing four.
- Related party activity: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, fails) alongside the existing three.
- Basis of business assets: Added a plain-language summary, glossary marks, and two typed scenarios (fails, timing) alongside the existing three.
- Capitalization and repair regulations (e.g., elections): Added a plain-language summary, a decision diagram of the fixed analysis order, glossary marks, and a fifth typed scenario (interaction).
- Reconciliation of tax versus books (e.g., M-1, M-2, M-3): Added a plain-language summary, glossary marks, and two typed scenarios (boundary, fails) alongside the existing three.
- Converted property: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, fails) rounding the scenario set out to five types.
- Disposition of property or assets: Added a plain-language summary, a decision diagram of the recapture-netting-lookback sequence, glossary marks, and two typed scenarios (boundary, interaction) rounding the scenario set out to five types.
- Like-kind exchange of business property: Added a plain-language summary, a timeline diagram of the identification and exchange clocks, glossary marks, and two typed scenarios (boundary, fails) rounding the scenario set out to five types.
- Business bad debts: Added a plain-language summary, a decision diagram of the business/non-business fork, glossary marks, and two typed scenarios (fails, procedural) rounding the scenario set out to five types.
- Business rental deduction, including self-rentals: Added a plain-language summary, a decision diagram of the self-rental test, glossary marks, and two typed scenarios (baseline, fails) rounding the scenario set out to five types.
- Business travel, meals, and gift expenses: Added a plain-language summary, a threshold diagram of the gift-expense lines, and two typed scenarios (fails, procedural) rounding the scenario set out to five types.
- Casualties, thefts, and condemnations: Added a plain-language summary, glossary marks, and two typed scenarios.
- Depreciation, amortization, IRC Section 179, depletion and bonus depreciation: Added a plain-language summary, glossary marks, and two typed scenarios.
- General business credits: Added a plain-language summary, glossary marks, and two typed scenarios.
- Employment taxes: Added a plain-language summary, glossary marks, and two typed scenarios.
- Home office: Added a plain-language summary, a decision diagram of the exclusive-and-regular-use gate, glossary marks, and two typed scenarios.
- Insurance expense: Added a plain-language summary, glossary marks, and two typed scenarios.
- Business interest expense: Added a plain-language summary, glossary marks, and two typed scenarios (fails, interaction) alongside the three existing ones now typed baseline/boundary/timing.
- Net operating loss deduction: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, fails) alongside the three existing ones now typed baseline/interaction/procedural.
- Officers and employees' compensation: Added a plain-language summary, glossary marks, and two typed scenarios (timing, interaction) alongside the three existing ones now typed boundary/baseline/fails.
- Qualified business income: Added a plain-language summary, a decision diagram of the specified-service gates, glossary marks, and two typed scenarios (interaction, timing) alongside the three existing ones now typed boundary/baseline/fails.
- Taxes, assessments and penalties: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, timing) alongside the three existing ones now typed baseline/procedural/fails.
- Applying for IRS tax-exempt status (e.g., Form 1023, Form 1024): Added a plain-language summary, typed the three scenarios, and marked one glossary term.
- Filing requirements (e.g., Form 990 series): Added a plain-language summary, typed the three scenarios, and marked two glossary terms.
- Vehicle use and expenses: Added a plain-language summary, glossary marks, and two typed scenarios (timing, interaction) alongside the three existing ones now typed baseline/boundary/fails.
- Qualifying for and maintaining tax-exempt status (e.g., IRC 501(c)): Added a plain-language summary, a decision diagram of the qualification gates, typed the three scenarios, and marked two glossary terms.
- Unrelated business taxable income: Added a plain-language summary, typed the three scenarios, and marked one glossary term.
- Cancellation of business debt: Added a plain-language summary, a decision diagram of which exclusion applies and in what order, glossary marks, and a fourth typed scenario at the insolvency cap.
- Cost of goods sold: Added a plain-language summary, glossary marks, and a fourth typed scenario on the IRC § 263A / IRC § 174A capitalization interaction. No diagram: the content is a computation and a title-based membership test, not a fit for the built archetypes.
- Net income, net operating losses, and loss limitations: Added a plain-language summary, a decision diagram of the four gates in order, glossary marks, and a fourth typed scenario on two vintages of net operating loss.
- Gross receipts and other income: Added a plain-language summary, glossary marks, and a fourth typed scenario on the IRC § 451(b) financial statement conformity ceiling. No diagram: the cash-method and accrual-method timing rules branch rather than form a single gate sequence, and none of the built archetypes fits a branch.
- Disaster-area provisions (drought, flood, other weather-related conditions): Added a plain-language summary, a timeline diagram of the four reliefs, typed the three scenarios, and marked two glossary terms.
- Depreciation for farmers: Added a plain-language summary, typed the three scenarios, and marked one glossary term.
- Farm income (e.g., self-raised livestock, crop insurance proceeds, subsidies, patronage dividends, conservation payments): Added a plain-language summary, glossary marks, and typed scenarios.
- Farm rental: Added a plain-language summary, glossary marks, and typed scenarios.
- Farm tax computation (e.g., Schedule J, Schedule SE, estimated tax): Added a plain-language summary, glossary marks, and typed scenarios.
- Employer and employee contributions: Added a plain-language summary, typed scenarios, and a glossary mark.
- Non-discrimination rules: Added a plain-language summary and typed scenarios.
- Prohibited transactions: Added a plain-language summary, glossary marks, and typed scenarios.
- Qualified and non-qualified plans: Added a plain-language summary, glossary marks, and typed scenarios.
- Plans for self-employed persons (e.g., SEP and SIMPLE): Added a plain-language summary, typed scenarios, and glossary marks.
- Reporting requirements: Added a plain-language summary, glossary marks, and typed scenarios.
- Commercial rentals versus residential rentals: Added a plain-language summary, glossary marks, and typed scenarios.
- Mixed used property/vacation home: Added a plain-language summary, a decision diagram of the three regimes, a glossary mark, and typed scenarios.
- Passive loss limitation (e.g., special $25,000 allowance, MAGI limits): Added a plain-language summary, glossary marks, and typed scenarios.
- Real estate professional qualifications: Added a plain-language summary, a decision diagram of the two-part test, glossary marks, and a fourth typed scenario showing the test satisfied end to end.
- Rental expenses (e.g., allocation between personal and rental, repair versus capitalized): Added a plain-language summary, typed scenarios, and glossary marks.
- Rental income (e.g., deposits, pre-paid rent, not rented for profit): Added a plain-language summary, typed scenarios, and glossary marks.
- Distributable net income and accounting income: Added a plain-language summary, glossary marks, and typed scenarios.
- Filing requirements, tax years, and penalties: Added a plain-language summary, glossary marks, and typed scenarios.
- Exclusions, exemptions, and deductions: Added a plain-language summary, glossary marks, and typed scenarios.
- Income (e.g., allocations, corpus versus income): Added a plain-language summary, glossary marks, and typed scenarios (fails, baseline, interaction).
- Fraudulent trusts: Added a plain-language summary, glossary marks, and typed scenarios (fails, interaction, procedural).
- Separately stated items (items reported on the K-1): Added a plain-language summary, glossary marks, and typed scenarios (baseline, boundary, fails).
- Trust types (e.g., simple/complex, grantor, irrevocable, tax shelters, foreign): Added a plain-language summary, a decision diagram of the domestic/foreign test, glossary marks, and typed scenarios (timing, fails, boundary).
- ACA net premium tax credit: Added a plain-language summary, a threshold diagram of the 2026 applicable-percentage and 400-percent-of-poverty-line figures, glossary marks, and two typed scenarios (fails, procedural) alongside retyped existing ones.
- Adoption credits: Added a plain-language summary, a threshold diagram of the 2026 income phase-out band, glossary marks, and two typed scenarios (boundary, procedural) alongside retyped existing ones.
- Child and dependent care credit: Added a plain-language summary, a threshold diagram of the 2026 applicable-percentage staircase, glossary marks, and two typed scenarios (fails, procedural) alongside retyped existing ones.
- Child tax credit and credit for other dependents: Added a plain-language summary, a decision diagram of the qualifying-child-versus-other-dependent split, glossary marks, and two typed scenarios (interaction, procedural) alongside retyped existing ones.
- Earned income tax credit: Added a plain-language summary, typed scenarios, and glossary marks as part of the comprehension-layer rollout.
- Education credits: Added a plain-language summary, typed scenarios, and glossary marks as part of the comprehension-layer rollout.
- Foreign tax credit: Added a plain-language summary, typed scenarios, and glossary marks as part of the comprehension-layer rollout.
- Other credits (refundable and nonrefundable): Added a plain-language summary, typed scenarios, and glossary marks as part of the comprehension-layer rollout.
- Allowed itemized deductions for Form 1040-NR: Added a plain-language summary, two glossary marks, a decision diagram of the deductibility test, and a fourth typed scenario on the contiguous-country exemption.
- Charitable contributions: Added a plain-language summary, three glossary marks, two typed scenarios (baseline, timing), and a threshold diagram of the floor and the cash ceiling.
- Interest expense deductions for individuals: Added a plain-language summary, two glossary marks, a timeline diagram of the dated changes, and two typed scenarios (baseline, timing) alongside the existing three.
- Medical, dental, vision and long-term care expenses: Added a plain-language summary, four glossary marks, a threshold diagram of the AGI floor, and two typed scenarios (baseline, procedural) alongside the existing three.
- Qualified Business Income Deduction: Added a plain-language summary, a decision diagram of the threshold/phase-in/SSTB gates, glossary marks, and two typed scenarios (the employee-wage exclusion and the owner-level filing mechanics).
- Other itemized deductions: Added a plain-language summary, glossary marks, and two typed scenarios (the § 1341 threshold boundary and a surviving deduction that still loses to the standard deduction).
- Nonbusiness casualty and theft losses in declared disaster areas: Added a plain-language summary, glossary marks, and two typed scenarios (a baseline declared-disaster deduction and the boundary where gains cross losses by a dollar).
- Various taxes: Added a plain-language summary, glossary marks, and three typed scenarios (the ordinary case under the cap, the phasedown threshold, and the cap's scheduled reversion after 2029).
- Health savings accounts: Added a plain-language summary, a decision diagram of the monthly eligibility test, glossary marks, and two typed scenarios.
- Other adjustments to income: Added a plain-language summary, glossary marks, and two typed scenarios.
- Retirement contribution limits and deductibility: Added a plain-language summary, a decision diagram of the order the IRA limits bind, glossary marks, and two typed scenarios.
- Self-employed health insurance: Added a plain-language summary, a decision diagram of the three gates that decide the deduction, glossary marks, and two typed scenarios.
- Self-employment tax deduction and the two halvings: Added a plain-language summary, a threshold diagram of the $400 floor, glossary marks, and two new typed scenarios.
- Forms 1099-MISC, 1099-NEC and 1099-K — reporting, irregularities and corrections: Added a plain-language summary, glossary marks, and two typed scenarios.
- Constructive dividends: Added a plain-language summary, glossary marks, and two typed scenarios (fails, procedural) alongside the existing three.
- Constructive receipt of income: Added a plain-language summary, a decision diagram of the availability/restriction test, glossary marks, and two typed scenarios (timing, fails) alongside the existing three.
- Dividends and other distributions from mutual funds, corporations, and other entities: Added a plain-language summary, a decision diagram of the qualified-dividend holding-period test, glossary marks, and two typed scenarios (interaction, timing) alongside the existing three.
- Interest income: Added a plain-language summary, a decision diagram of the below-market loan gating rules, glossary marks, and two typed scenarios (fails, timing) alongside the existing three.
- Gambling income and allowable deductions: Added a plain-language summary, a decision diagram of the itemizing and two-ceiling tests, glossary marks, and two typed scenarios (boundary, fails) alongside the existing three.
- Other income: Added a plain-language summary, glossary marks, and two typed scenarios (fails, procedural) alongside the existing three.
- Passive income and loss: Added a plain-language summary, glossary marks, a decision diagram of the rental-loss escape routes, and two typed scenarios (boundary, timing) alongside the existing three.
- Pass-through income items: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, timing) alongside the existing three.
- Personal property rental: Added a plain-language summary, glossary marks, and two typed scenarios (procedural, timing) alongside the existing three.
- Royalties and related expenses: Added a plain-language summary, glossary marks, and two typed scenarios (fails, procedural) alongside the existing three.
- State and local income tax refunds and other itemized deduction recoveries: Added a plain-language summary, glossary marks, and two typed scenarios (timing, procedural) alongside the existing three.
- Tax treatment of a U.S. citizen or resident with foreign income: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, timing) alongside the existing three.
- Taxability of wages, salaries and other earnings: Added a plain-language summary, glossary marks, and typed scenarios.
- Tax treatment of forgiveness of debt: Added a plain-language summary, a decision diagram of the exclusion order, glossary marks, and typed scenarios.
- Basis of assets for individuals: Added a plain-language summary, glossary marks, and typed scenarios.
- Basis of stock after stock splits and stock dividends: Added a plain-language summary, glossary marks, and typed scenarios.
- Capital gains and losses: Added a plain-language summary, glossary marks, and typed scenarios.
- Installment sales: Added a plain-language summary, glossary marks, and typed scenarios.
- Investor versus trader: Added a plain-language summary, glossary marks, and two typed scenarios (procedural, timing) rounding out the scenario taxonomy. No diagram: the investor-versus-trader line is an explicit facts-and-circumstances test with no statutory checklist, and a decision diagram would overstate how mechanical it is.
- Like-kind exchange of real property: Added a plain-language summary, a timeline diagram of the identification and exchange deadlines, glossary marks, and two typed scenarios (fails, procedural) rounding out the scenario taxonomy.
- Non-business bad debts: Added a plain-language summary, a decision diagram of the three qualifying tests, glossary marks, and two typed scenarios (boundary, procedural) rounding out the scenario taxonomy.
- Options — statutory, non-statutory, and traded: Added a plain-language summary, a decision diagram of the ISO qualifying-disposition tests, glossary marks, and a boundary scenario.
- Publicly traded partnerships: Added a plain-language summary, a decision diagram of the § 7704(c) escape test, glossary marks, and a procedural scenario on transferee withholding.
- Sale of a personal residence: Added a plain-language summary, a decision diagram of the ownership/use/frequency tests, glossary marks, and a fails scenario rounding out the scenario taxonomy. No threshold diagram: the exclusion figure bundles the single and joint amounts into one string that a number-line parser would garble, so the eligibility tests are diagrammed instead.
- Sale or disposition of property and depreciation recapture: Added a plain-language summary, two typed scenarios (timing, fails), and glossary marks.
- Basis in a traditional IRA: Added a plain-language summary, two typed scenarios (interaction, boundary), and glossary marks.
- Traditional and Roth IRAs compared, and their distributions: Added a plain-language summary, a decision diagram of the qualified-distribution test, two typed scenarios (timing, procedural), and glossary marks.
- Distributions from qualified and nonqualified plans: Added a plain-language summary, two typed scenarios (boundary, procedural), and glossary marks.
- Excess contributions and their tax treatment: Added a plain-language summary, two typed scenarios (boundary, fails), and glossary marks.
- Foreign pensions and retirement income: Added a plain-language summary, two typed scenarios (timing, procedural), and glossary marks.
- Loans from qualified plans: Added a plain-language summary, glossary marks, and two typed scenarios (baseline, interaction) alongside the three existing ones.
- Penalties and exceptions on premature distributions: Added a plain-language summary, glossary marks, a decision diagram of the general/IRA-only/plan-only exception paths, and two typed scenarios (boundary, fails) alongside the three existing ones.
- IRA conversions and recharacterization: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, procedural) alongside the three existing ones.
- Inherited retirement accounts: Added a plain-language summary, glossary marks, and three typed scenarios (baseline, boundary, procedural) alongside the three existing ones.
- Prohibited transactions and their tax effects: Added a plain-language summary, glossary marks, and two typed scenarios (baseline, procedural) alongside the three existing ones.
- Required minimum distributions and excess accumulations: Added a plain-language summary, a timeline diagram of the required-beginning-date sequence, glossary marks, and two typed scenarios (baseline, boundary) alongside the three existing ones.
- Taxability of net unrealized appreciation (NUA): Added a plain-language summary, glossary marks, and three typed scenarios (boundary, interaction, procedural) alongside the existing three.
- Taxability of Social Security and Railroad Retirement benefits: Added a plain-language summary, glossary marks, and three typed scenarios (baseline, fails, procedural) alongside the existing three. A threshold diagram of the base-amount figures was evaluated and skipped because those figures bundle single, joint, and zero-for-MFS values into one string.
- Estate filing requirements and due dates (Form 706, Form 1041): Added a plain-language summary, a timeline diagram of the three filing deadlines, glossary marks, and typed scenarios.
- Gross estate, taxable estate (calculations and payments), unified credit, life insurance, and filing requirements: Added a plain-language summary, glossary marks, and typed scenarios.
- Jointly-held property: Added a plain-language summary, glossary marks, and typed scenarios.
- Life insurance, IRAs and retirement plans: Added a plain-language summary, glossary marks, and typed scenarios.
- Marital deduction and other marital issues (e.g., portability election): Added a plain-language summary, glossary marks, and typed scenarios.
- Annual exclusion: Added a plain-language summary, glossary marks, and typed scenarios.
- Effect on estate tax (e.g., Generation skipping transfer tax): Added a plain-language summary, typed scenarios, and glossary marks under the comprehension-layer rollout.
- Filing requirements (Form 709): Added a plain-language summary, typed scenarios, and glossary marks under the comprehension-layer rollout.
- Gift-splitting: Added a plain-language summary, typed scenarios, and glossary marks under the comprehension-layer rollout.
- Unified credit: Added a plain-language summary, typed scenarios, and glossary marks under the comprehension-layer rollout.
- ACA requirements: Added a plain-language summary, a threshold diagram of the premium tax credit's income range, glossary marks, and typed scenarios.
- Additional required returns filed and taxes paid: Added a plain-language summary, glossary marks, and typed scenarios.
- Filing requirements and due date: Added a plain-language summary, a timeline diagram of the filing due dates and automatic extensions, glossary marks, and typed scenarios.
- Foreign account and asset reporting: Added a plain-language summary, a threshold diagram comparing the FBAR and Form 8938 triggers, glossary marks, and a typed scenario.
- Minor children's unearned income — the kiddie tax: Added a plain-language summary, a threshold diagram of the two-layer figure, glossary marks, and typed scenarios.
- Previous IRS correspondence with taxpayer: Added a plain-language summary, a timeline diagram of the math error notice's abatement window, glossary marks, and two typed scenarios.
- Qualifications for dependency: Added a plain-language summary, glossary marks, typed scenarios, and a decision diagram of the five qualifying child tests.
- Sources of all worldwide taxable and nontaxable income: Added a plain-language summary, glossary marks, and typed scenarios.
- Sources of applicable credits: Added a plain-language summary, a threshold diagram of the 2026 child and dependent care percentage step-downs, glossary marks, and a baseline scenario.
- Sources of tax payments and refundable credits: Added a plain-language summary, a threshold diagram of the 2026 earned income credit phase-in and phase-out, glossary marks, and a timing scenario.
- Special filing requirements: Added a plain-language summary, a decision diagram of which special filing rule applies, glossary marks, and a typed scenario.
- Taxpayer filing status: Added a plain-language summary, a decision diagram for which filing status applies, glossary marks, and typed scenarios.
- Covered accounts (e.g., FBAR, Form 8938): Added a plain-language summary, typed scenarios, and glossary marks under the comprehension-layer rollout.
- Distinctions between FBAR and Form 8938 requirements: Added a plain-language summary, a decision diagram walking through which form a holding lands on, typed scenarios, and glossary marks under the comprehension-layer rollout.
- Filing and reporting requirements and due dates (e.g., FBAR, Form 8938, Form 8865, Form 5471, Form 3520): Added a plain-language summary, glossary marks, and typed scenarios.
- International voluntary disclosure options: Added a plain-language summary, a decision diagram showing which route applies and what closes it, glossary marks, and typed scenarios.
- Ownership of a foreign corporation (GILTI, IRC Section 965 transition tax): Added a plain-language summary, glossary marks, and typed scenarios.
- Potential penalties (e.g., failure to file, underreporting, substantially incomplete, statute of limitations, reduction of tax attributes): Added a plain-language summary, glossary marks, and typed scenarios.
- Miscalculations and recognition of duplicate entries: Added a plain-language summary, typed scenarios, and glossary marks (comprehension layer).
- Reliance on software: Added a plain-language summary, typed scenarios, and glossary marks (comprehension layer).
- Additional Medicare tax: Added a plain-language summary, two typed scenarios (timing, procedural), and glossary marks.
- Alternative minimum tax and credit for prior year: Added a plain-language summary, two typed scenarios (fails, procedural), and a glossary mark.
- Excess Social Security withholding: Added a plain-language summary, a decision diagram, two typed scenarios (boundary, procedural), and glossary marks.
- Household employees: Added a plain-language summary, a decision diagram, two typed scenarios (boundary, procedural), and glossary marks.
- Income in respect of decedent: Added a plain-language summary, two typed scenarios (fails, boundary), and glossary marks.
- Net investment income tax: Added a plain-language summary, two typed scenarios (fails, procedural), and glossary marks.
- Self-employment tax: who owes it and the optional methods: Added a plain-language summary, glossary marks, and two typed scenarios (boundary, fails) on the optional-method limits, alongside the three existing ones, now typed procedural, baseline, and interaction.
- Tax provisions for members of the clergy: Added a plain-language summary, glossary marks, two typed scenarios (timing, procedural) alongside the three existing ones now typed baseline/fails/interaction, and a decision diagram of the two self-employment tax exemptions.
- Other taxes: Added a plain-language summary, glossary marks, and two typed scenarios (baseline, fails) alongside the three existing ones, now typed boundary, timing, and interaction.
- Uncollected Social Security and Medicare tax: Added a plain-language summary, glossary marks, two typed scenarios (baseline, fails) alongside the three existing ones now typed boundary/procedural/timing, and a decision diagram of the reported-versus-collected pathway.
- Underpayment penalties and interest: Added a plain-language summary, glossary marks, two typed scenarios (fails, procedural) alongside the three existing ones now typed boundary/timing/interaction, and a decision diagram of the § 6654 exceptions. The threshold archetype was considered and rejected: the relevant figures bundle several numbers into one string and would garble on the number line.
- Data security: Added a plain-language summary, glossary marks, and two typed scenarios. No diagram: the content is a concurrent checklist, not a decision chain, threshold, or dated sequence.
- Tax provisions for members of the military: Added a plain-language summary, glossary marks, two typed scenarios (fails, timing) alongside the three existing ones now typed baseline/boundary/interaction, and a timeline diagram of the § 7508 deadline suspension.
- Length of time to retain returns and records: Added a plain-language summary, glossary marks, two typed scenarios, and a timeline diagram of the retention periods by triggering fact.
- Advertising standards: Added a plain-language summary and typed scenarios (comprehension layer).
- Application process to be an e-file provider: Added a plain-language summary, typed scenarios, and glossary marks (comprehension layer).
- Compliance requirements to continue in the program: Added a plain-language summary, typed the existing scenarios, added a baseline scenario, and marked two glossary terms.
- Definition and responsibilities of an ERO: Added a plain-language summary, typed the existing scenarios, and marked two glossary terms.
- E-file authorization and supporting documentation: Added a plain-language summary, typed the existing scenarios, added a baseline scenario, and marked one glossary term.
- EFIN revocation appeal process: Added a plain-language summary, a timeline diagram of the two-step review deadline, glossary marks, and typed scenarios.
- Rejected returns and resolution: Added a plain-language summary, glossary marks, two typed scenarios, and a timeline diagram of the perfection-period sequence.
- Levels of infractions: Added a plain-language summary, glossary marks, and typed scenarios.
- Conflict of interest: Added a plain-language summary, a glossary mark, and typed scenarios.
- Continuing education requirements: Added a plain-language summary, a glossary mark, and typed scenarios.
- Due diligence requirements: Added a plain-language summary, a glossary mark, and typed scenarios.
- Enrollment cycle and renewal: Added a plain-language summary, a glossary mark, and typed scenarios.
- Information to be furnished to the IRS: Added a plain-language summary, glossary marks, and typed scenarios.
- Omission or error on return, document, or affidavit: Added a plain-language summary, glossary marks, and typed scenarios.
- Practitioner supervisory responsibilities (Circular 230): Added a plain-language summary, glossary marks, and typed scenarios.
- Fee rules (e.g., contingent, unconscionable): Added a plain-language summary, glossary marks, and typed scenarios.
- PTIN requirements: Added a plain-language summary, glossary marks, and typed scenarios.
- Rules for employing or accepting assistance from former IRS employees or disbarred/suspended persons: Added a plain-language summary, glossary marks, and typed scenarios.
- Rules for prompt disposition of matters before the IRS: Added a plain-language summary, glossary marks, and typed scenarios.
- Rules for refund check negotiation: Added a plain-language summary, a glossary mark, and typed scenarios.
- Rules for restrictions on advertising, solicitation and fee information: Added a plain-language summary, glossary marks, and typed scenarios.
- Rules for returning a client's records and documents: Added a plain-language summary, a glossary mark, and typed scenarios.
- Standards for written advice, covered opinions, tax return positions and preparing returns: Added a plain-language summary, glossary marks, and typed scenarios.
- Tax shelters: Added a plain-language summary, a decision diagram for the material advisor test, glossary marks, and typed scenarios.
- Assessment and appeal procedures for preparer penalties: Added a plain-language summary, a timeline diagram of the assessment and appeal sequence, glossary marks, and typed scenarios.
- Employees engaged or employed during a return period (e.g. IRC Section 6060): Added a plain-language summary, glossary marks, and typed scenarios.
- Furnishing a copy of a return to a taxpayer: Added a plain-language summary, a glossary mark, and typed scenarios.
- Keeping copies or lists of returns prepared: Added a plain-language summary, a glossary mark, and typed scenarios.
- Preparer due diligence and penalties (e.g., refundable credits, head of household status): Added a plain-language summary, a decision diagram testing the isolated-failure exception, glossary marks, and typed scenarios.
- Signing returns and furnishing identifying numbers: Added a plain-language summary, glossary marks, and typed scenarios.
- Types of penalties a preparer faces: Added a plain-language summary, a decision diagram sorting a fact pattern into the right penalty family, glossary marks, and typed scenarios.
- What constitutes practice before the IRS: Added a plain-language summary, glossary marks, and typed scenarios.
- Who may practice before the IRS, and how far their rights extend: Added a plain-language summary, a decision diagram of the category chain, glossary marks, and typed scenarios.
- Fraudulent transactions (e.g., badges of fraud): Added a plain-language summary, glossary marks, and typed scenarios.
- Frivolous submissions (returns and documents): Added a plain-language summary, glossary marks, and typed scenarios.
- Incompetence and disreputable conduct that may result in a disciplinary proceeding: Added a plain-language summary, glossary marks, and typed scenarios.
- Sanctions imposed by the Office of Professional Responsibility: Added a plain-language summary, glossary marks, and typed scenarios.
- Competence, expertise and time to handle issue: Added a plain-language summary, typed scenarios, and glossary marks.
- Identification of tax issue(s) with supporting details: Added a plain-language summary, typed scenarios, and a glossary mark.
- Conflict of interest in regards to representation: Added a plain-language summary, typed scenarios, and glossary marks.
- Potential for criminal aspects: Added a plain-language summary, typed scenarios, and glossary marks.
- Transcripts from IRS (e.g., access to and use of e-services): Added a plain-language summary, typed scenarios, and glossary marks.
- Authoritative versus non-authoritative source material: Added a plain-language summary, a decision diagram, typed scenarios, and glossary marks.
- Case law: Added a plain-language summary, a glossary mark, and typed scenarios.
- Internal Revenue Manual: Added a plain-language summary, glossary marks, and typed scenarios.
- IRS forms, instructions and publications: Added a plain-language summary, glossary marks, and typed scenarios.
- Internal Revenue Code and income tax regulations: Added a plain-language summary, glossary marks, and typed scenarios.
- Private letter ruling: Added a plain-language summary, a glossary mark, and typed scenarios.
- Revenue rulings and revenue procedures: Added a plain-language summary, glossary marks, and typed scenarios.
- Tax treaties: Added a plain-language summary, typed scenarios, and glossary marks.
- Deadlines and timeliness requirements: Added a plain-language summary, a timeline diagram of the deadline rules, a glossary mark, and typed scenarios.
- Freedom of Information Act (FOIA) requests: Added a plain-language summary, glossary marks, and typed scenarios.
- Judicial levels of representation beyond the scope of EA representation: Added a plain-language summary, glossary marks, and typed scenarios.
- Identity Theft: Added a plain-language summary, glossary marks, and typed scenarios.
- Post-filing correspondence (e.g., math error notices, under-reporting notices): Added a plain-language summary, glossary marks, and typed scenarios.
- Statute of limitations: assessment, refund, and collection: Added a plain-language summary, glossary marks, and typed scenarios.
- Tax avoidance vs. tax evasion: Added a plain-language summary, a decision diagram on the willfulness/affirmative-act line, typed scenarios, and glossary marks.
- Tax return disclosure statements: Added a plain-language summary, typed scenarios, and glossary marks.
- Taxpayer Advocate Service (e.g., criteria for requesting assistance): Added a plain-language summary, typed scenarios, and glossary marks.
- Third-party correspondence (e.g., witness communications, employment records): Added a plain-language summary, typed scenarios, and a glossary mark.
- Alternate forms of power of attorney (durable): Added a plain-language summary, a third typed scenario, and glossary marks.
- Authority granted by the taxpayer, and its boundaries: Added a plain-language summary, typed scenarios, and glossary marks.
- Conference and practice requirements (Publication 216): Added a plain-language summary, typed scenarios, and glossary marks.
- Distinctions between power of attorney (Form 2848) and tax information authorization (Form 8821): Added a plain-language summary, typed scenarios, glossary marks, and a decision diagram for choosing between the two forms.
- Limitations on signing a tax return for a taxpayer: Added a plain-language summary, typed scenarios, and a glossary mark.
- Proper completion of power of attorney (Form 2848): Added a plain-language summary, typed scenarios, and a glossary mark.
- Purpose of a Centralized Authorization File (CAF) number: Added a plain-language summary, typed scenarios, and glossary marks.
- Purpose of a power of attorney before the IRS: Added a plain-language summary, typed scenarios, and glossary marks.
- Requirements to be met when changing or dropping representatives or withdrawal of representative: Added a plain-language summary, typed scenarios, and glossary marks.
- Rules for client privacy and consent to disclose: Added a plain-language summary and typed scenarios.
- Signature authority: consents, closing agreements, and refund checks: Added a plain-language summary, typed scenarios, and glossary marks.
- Business entity supporting documents: Added a plain-language summary, typed scenarios, and glossary marks.
- Legal documents: Added a plain-language summary, a glossary mark, and typed scenarios.
- Financial documents and expense records: Added a plain-language summary, typed scenarios, and glossary marks.
- Other substantive and contemporaneous documentation: Added a plain-language summary, glossary marks, and typed scenarios.
- Prior and subsequent tax returns: Added a plain-language summary, glossary marks, and typed scenarios.
- Discharge of the tax liability in bankruptcy: Added a plain-language summary, a decision diagram of the discharge tests, glossary marks, and typed scenarios.
- General financial health: Added a plain-language summary, glossary marks, and typed scenarios.
- IRS Collection Financial Standards: Added a plain-language summary, a threshold diagram of the national standard by family size, glossary marks, and typed scenarios.
- Taxpayer's ability to pay the tax: Added a plain-language summary, a decision diagram of the ability-to-pay resolution sequence, glossary marks, and typed scenarios.
- Third-party research: Added a plain-language summary, glossary marks, and typed scenarios.
- Basis for having interest abated or refunded: Added a plain-language summary, typed scenarios, and glossary marks.
- Which penalties can be abated: Added a plain-language summary, typed scenarios, and glossary marks.
- Grounds for abating or refunding a penalty: Added a plain-language summary, a baseline scenario, typed scenarios, and glossary marks.
- Procedures for requesting abatement: Added a plain-language summary, a decision diagram of the Form 843 eligibility gates, typed scenarios, and a glossary mark.
- Enrolled agent appearance at an Appeals conference: Added a plain-language summary, typed scenarios, and glossary marks.
- Interest recalculation: Added a plain-language summary, typed scenarios, and a glossary mark.
- Issuance of the 90-day letter: Added a plain-language summary, a timeline diagram of the petition window, glossary marks, and typed scenarios.
- Request for Appeals consideration: Added a plain-language summary, glossary marks, and typed scenarios.
- Right to appeal: Added a plain-language summary, glossary marks, and typed scenarios.
- Settlement function of the Appeals process: Added a plain-language summary, glossary marks, and typed scenarios.
- Explanations of taxpayer options (e.g. agree or appeal): Added a plain-language summary, glossary marks, and typed scenarios.
- Interpretation and analysis of Revenue Agent Report (RAR) (e.g., 30-day letter): Added a plain-language summary, a timeline diagram from the report to the Tax Court petition deadline, glossary marks, and typed scenarios.
- Interpretation and analysis of CP-2000 notice and correspondence audits: Added a plain-language summary, glossary marks, and typed scenarios.
- IRS authority to investigate: Added a plain-language summary, a threshold diagram of the two most-tested notice periods, a glossary mark, and typed scenarios.
- IRS authority to fix time and place of investigation: Added a plain-language summary, a glossary mark, and typed scenarios.
- Limited practitioner privilege (e.g., IRC Section 7525): Added a plain-language summary, a decision diagram of the three gates on the privilege, glossary marks, and typed scenarios.
- Steps in the process: Added a plain-language summary, a timeline diagram of the examination's shape, a glossary mark, and typed scenarios.
- Taxpayer's burden of proof: Added a plain-language summary, a decision diagram of the § 7491(a) shift, a glossary mark, and typed scenarios.
- Verification and substantiation of entries on the return: Added a plain-language summary, a decision diagram of the § 274(d) substantiation test, a glossary mark, and typed scenarios.
- Collection due process: lien and levy hearings: Added a plain-language summary, a timeline diagram of the notice-to-Tax-Court clock, glossary marks, and typed scenarios.
- Collection notice and Notice of Federal Tax Lien: Added a plain-language summary, a timeline diagram of the notice-to-exit sequence, glossary marks, and a fifth typed scenario.
- Currently Not Collectable (e.g., reasons and reactivation): Added a plain-language summary, glossary marks, and two typed scenarios. No diagram: the closing-code taxonomy and multi-condition compliance check read as a procedural enumeration rather than a linear decision or clock.
- Extension of time to pay (e.g., Form 1127): Added a plain-language summary, glossary marks, and two typed scenarios. No diagram: the three maximum periods sit on wildly different scales (6 months, 18 months, 10 years), so a single scaled diagram would either flatten the short ones together or exaggerate the estate-tax outlier — the table above already carries this cleanly.
- Collections statute of limitations: Added a plain-language summary, a timeline diagram of the ten-year clock and its suspensions, glossary marks, and two typed scenarios.
- Requesting an audit reconsideration (e.g., documents and forms): Added a plain-language summary, a decision diagram of the eligibility gates, glossary marks, and two typed scenarios covering a substitute-for-return case and the 30-day documentation window.
- Trust fund recovery penalty: Added a plain-language summary, a decision diagram of the two-element test, glossary marks, and two typed scenarios covering the Form 4180 interview pause and the divisible-tax refund route.
- Adjustments, deductions, and credits for tax planning (e.g., timing of income and expenses): Added a plain-language summary, glossary marks, and typed scenarios.
- Representing a decedent: Added a plain-language summary, glossary marks, and two typed scenarios covering the discharge window and the prompt-assessment exclusion for the estate tax return.
- Advantages and disadvantages of MFJ/MFS/HOH filing statuses in various scenarios. (joint and several liability): Added a plain-language summary, a decision diagram for the considered-unmarried route to head of household, glossary marks, and typed scenarios, including a new baseline scenario.
- Character of transaction (e.g., use of capital gain rates versus ordinary income rates): Added a plain-language summary, glossary marks, and typed scenarios, including a new baseline scenario.
- Conditions for filing a claim for refund (amended returns): Added a plain-language summary, a timeline diagram of the filing periods, glossary marks, and typed scenarios, including a new baseline scenario.
- Education planning: Added a plain-language summary, a timeline diagram of the 2025 Act's staggered effective dates, glossary marks, and a new boundary scenario.
- Estate planning: Added a plain-language summary, glossary marks, and typed scenarios, including a new boundary scenario.
- Estimated tax and penalty avoidance (mid-year estimated tax planning): Added a plain-language summary, glossary marks, and a fifth typed scenario (comprehension layer).
- Injured spouse: Added a plain-language summary, glossary marks, and a fourth typed scenario (comprehension layer).
- Items that will affect future and past returns: Added a plain-language summary, glossary marks, and a fourth typed scenario (comprehension layer).
- Innocent spouse: Added a plain-language summary, a decision diagram of the three routes, glossary marks, and two typed scenarios (comprehension layer).
- Marriage and divorce: Added a plain-language summary, glossary marks, and two typed scenarios (comprehension layer).
- Penalty of perjury: Added a plain-language summary, glossary marks, and a fifth typed scenario (comprehension layer).
- Property sales: Added a plain-language summary, glossary marks, and two additional typed scenarios (baseline, timing) alongside the existing three. No diagram added: the four-way rate classification and its compound, multi-filing-status figures do not fit the decision or threshold archetypes without distorting the content.
- Reporting obligations for individuals: Added a plain-language summary, a decision diagram of the Form 1099-K conjunctive test, glossary marks, and three additional typed scenarios (baseline, fails, boundary) alongside the existing three.
- Retirement planning: Added a plain-language summary, a decision diagram of the spousal-rollover rule, glossary marks, and three additional typed scenarios (baseline, boundary, timing) alongside the existing three.
- Installment agreements: simple payment plans and the CSED: Added a plain-language summary, a decision diagram of the payment-plan ladder, glossary marks, and typed scenarios.
- IRS Collection Summons (e.g., purposes): Added a plain-language summary, glossary marks, and typed scenarios.
- Levy and seizure of taxpayer's property: Added a plain-language summary, glossary marks, and typed scenarios.
- Offer in compromise: grounds, payment terms, and the 24-month rule: Added a plain-language summary, a threshold diagram of the payment and deadline figures, glossary marks, and typed scenarios.
- Passport revocation: Added a plain-language summary, a timeline diagram of certification through reversal, glossary marks, and typed scenarios.
- Corporations: Initial draft. Sets out the flat IRC § 11(b) rate, the § 6072(a) April filing date that distinguishes a C corporation from the § 6072(b) entities, the § 170(b)(2)(A) charitable limitation as rewritten by Pub. L. 119-21 § 70426 to add a 1 percent floor beneath the 10 percent ceiling for taxable years beginning after 2025, the § 170(d)(2) carryover rules that follow from it, and the § 59A base erosion tax at the 10.5 percent rate substituted by Pub. L. 119-21 § 70331.
- Employer identification number: Initial draft. Sets out the IRC § 6109(a) requirement to supply identifying numbers, the Reg. § 301.6109-1(a)(1)(ii) rules on which number each kind of person uses including the sole proprietor rule at (D), the Form SS-4 application and the Reg. § 301.6109-1(d)(2)(ii) duty to keep application information current, the Reg. § 301.6109-1(d)(2)(iii) rule that a partnership formed on an IRC § 708(b)(1)(B) termination keeps the old number, and the IRS guidance on responsible parties, nominees, the one-per-day limit and when each kind of entity needs a new number.
- Accounting methods: Initial draft. Sets out the IRC § 446(a) book conformity rule and the § 446(b) clear reflection override, the § 446(c) permissible methods, the § 446(d) rule that one taxpayer may use different methods for different trades or businesses, the § 446(e) consent requirement, the § 448(a) prohibition on the cash method for C corporations, partnerships with a C corporation partner and tax shelters with its exceptions, the § 448(c) gross receipts test at the 2026 inflation-adjusted figure with the aggregation and annualisation mechanics, the § 461(h) economic performance requirement and recurring item exception, the § 471(c) and § 263A(i) small business exemptions that ride on the same test, and the § 481(a) adjustment on a change.
- Accounting periods (tax year): Initial draft. Sets out the IRC § 441 definition of the taxable year and the § 441(g) default to the calendar year, the § 442 requirement of approval for a change, the § 443 short period return and its annualisation, the § 706(b) required year for partnerships with the majority interest and principal partner tests, the § 1378 permitted year for S corporations, the § 444 election with its 3-month cap and the § 7519 and § 280H costs it carries, and the Rev. Proc. 2006-46 25-percent gross receipts test for a natural business year.
- Entity type default classifications and elections: Initial draft. Sets out the Reg. § 301.7701-3(b) default classifications for domestic and foreign eligible entities, the Reg. § 301.7701-3(c)(2) signature requirements including the rule that former owners must sign a retroactive or changing election, the Reg. § 301.7701-3(d) relevance rules for foreign entities and the 60-month lapse, and the Reg. § 301.7701-3(g) deemed transactions on an elective change of classification with their timing, the Reg. § 301.7701-3(g)(2)(ii) deemed adoption of a plan of liquidation for IRC § 332, and the ordering rule for tiered entities.
- Hobby versus business determination and loss limitations: Initial draft. Sets out the IRC § 183(a) disallowance and the § 183(c) definition by reference to §§ 162 and 212, the § 183(b) two-tier allowance and the Reg. § 1.183-1(b)(1) ordering that implements it, the § 183(d) presumption with its 3-of-5 and 2-of-7 tests and the § 183(e) election to postpone the determination, the nine Reg. § 1.183-2(b) factors with the regulation's own warning that they are not a scorecard, and the effect of IRC § 67(h) — the miscellaneous itemized deduction suspension made permanent by Pub. L. 119-21 § 70110(a) and redesignated by § 70110(b)(2) — which leaves the § 183(b)(2) tier without practical effect for an individual.
- LLCs: Initial draft. Sets out the Reg. § 301.7701-1(a)(1) rule that federal classification does not follow local law, the Reg. § 301.7701-2(b) list of per se corporations, the Reg. § 301.7701-3(b)(1) default classifications, the Form 8832 election with its 75-day and 12-month effective-date limits and the 60-month re-election bar, the Reg. § 301.7701-3(c)(1)(v)(C) deemed association election on a timely S corporation election, and the Reg. § 301.7701-2(c)(2)(iv) split under which a disregarded entity is a corporation for employment tax but still disregarded for the self-employment tax of its own owner.
- Partnerships and qualified joint ventures (QJV): Initial draft. Sets out the IRC § 761(a) and § 7701(a)(2) definition of a partnership, the § 701 rule that the entity is not taxed, the § 702(a) separately stated items, the § 6031 return requirement with its § 6072(b) date and the § 6698 per-partner per-month penalty as indexed by Rev. Proc. 2025-32 § 3.55, the § 761(a) election out of subchapter K, and the three conditions of the § 761(f) qualified joint venture election.
- S corporations: Initial draft. Sets out the IRC § 1361(b)(1) eligibility conditions and the § 1361(c)(1) family aggregation rule, the § 1362(b) election window and the § 1362(d) and (f) termination and inadvertent-termination rules, the § 1363(a) absence of entity-level tax with the § 1366(d)(1) basis limitation on losses, the § 1368(b) treatment of distributions, the § 1372 fringe benefit rule for 2-percent shareholders, the § 1377(a)(2) terminating-interest election, and the Reg. § 301.6037-2(a) electronic filing requirement as rewritten to a 10-return test with no asset threshold.
- Reporting requirements (e.g. Forms W2, W-4, Form 1099): Initial draft. Sets out the IRC § 6041(a) information-at-source threshold as raised by Pub. L. 119-21 § 70433(a) for payments made after 31 December 2025 and indexed by the new § 6041(h), the § 6041A(a) cross-reference that ties nonemployee compensation to the same figure, the § 6050W(e) 1099-K thresholds restored by Pub. L. 119-21 § 70432 as if included in the 2021 Act, the § 6051(a) employee statement and the § 6071(b) and (c) filing dates, the Reg. § 301.6011-2(c) 10-return electronic filing threshold, the § 6050I cash reporting return and its 15-day filing and January statement deadlines, and the § 6721 and § 6722 penalties at the amounts applying to returns and statements required in 2027.
- Sole proprietorships: Initial draft. Sets out the sole proprietorship as the absence of an entity — disregarded under Reg. § 301.7701-2(c)(2)(i), reported on the owner's return with no separate filing date under IRC § 6072, subject to self-employment tax under §§ 1401 and 1402 with the § 6017 return requirement and the unindexed $400 floor, and deducting under the ordinary § 162 standard.
- Tax-exempt entities and associations: Initial draft. Sets out the IRC § 501(a) grant of exemption and the § 501(b) carve-out for unrelated business income, the § 501(c)(3) organisational and operational conditions with the inurement, lobbying and campaign prohibitions, the neighbouring § 501(c)(4) and (c)(7) categories, the § 508(a) notice requirement and § 508(b) private foundation presumption, the § 6033 annual return with its church and small-receipts exceptions, the § 6033(i) electronic notice and § 6033(j) automatic revocation after three consecutive missed years, and the §§ 511 to 513 unrelated business income tax including the § 512(a)(6) separate computation and the § 512(b)(12) specific deduction.
- Closely held corporations: Initial draft. Sets out the IRC § 542(a)(2) stock ownership test that IRC §§ 465(a)(1)(B) and 469(j)(1) both borrow, the § 469(a)(2) list of persons subject to the passive activity rules and the exclusion of widely held C corporations, the § 469(e)(2)(A) concession allowing a closely held C corporation other than a personal service corporation to deduct passive activity losses against net active income, the § 469(j)(2) and § 269A(b) definition of a personal service corporation, and the § 465(a) at-risk limitation.
- IRC Section 351 exchange: Initial draft. Sets out the IRC § 351(a) nonrecognition conditions, the IRC § 368(c) definition of control with its two separate 80 percent tests, the § 351(d) exclusion of services and certain indebtedness from property, the § 358(a)(1) substituted basis in the stock received, the § 362(a) transferred basis in the corporation's hands with the § 362(e)(2) cap where aggregate bases would exceed fair market value, and the § 357(a) rule that an assumed liability is not boot.
- Controlled groups: Initial draft. Sets out the IRC § 1563(a)(1) parent-subsidiary test at 80 percent of voting power or value, the § 1563(a)(2) brother-sister test at more than 50 percent held identically by five or fewer individuals, estates or trusts, the § 1563(a)(3) and (4) combined group and insurance company rules, the § 1563(b)(1) fixing of component membership on a 31 December with the § 1563(b)(2) excluded members including a foreign corporation subject to IRC § 881, and the § 1561(a) sharing of a single accumulated earnings credit among the component members.
- Services rendered to a corporation in return for stock: Initial draft. Sets out the IRC § 351(d)(1) exclusion of services from property and the matching rule in Reg. § 1.351-1(a)(1)(i), the Reg. § 1.351-1(a)(1)(ii) accommodation-transferor rule that denies property treatment to a token contribution made primarily to qualify others, the IRC § 83(a) inclusion of the value of stock received for services with the § 83(b) election and the § 83(h) matching deduction to the corporation, and the Reg. § 1.351-1(a)(1) gloss on "immediately after the exchange".
- Transfer and/or receipt of money or property in addition to corporate stock: Initial draft. Sets out the IRC § 351(b) recognition of gain up to the money and fair market value of other property received with no recognition of loss, the § 358(a)(1) computation of stock basis through boot and recognised gain, the § 362(a) increase in the corporation's basis by the gain recognised, and the § 1223(1) and (2) holding period rules under which the shareholder tacks the holding period of the property given up and the corporation tacks the transferor's.
- Transfer of property subject to indebtedness: Initial draft. Sets out the IRC § 357(a) rule that an assumed liability is not money or other property, the § 357(b) recharacterisation of the whole of the liabilities where the principal purpose was tax avoidance or was not a bona fide business purpose, the § 357(c)(1) treatment of liabilities exceeding the aggregate adjusted basis of the property transferred as gain, the § 357(c)(3) exclusion of liabilities whose payment would give rise to a deduction, and the § 358(d) treatment of an assumed liability as money received for basis purposes with its matching exception.
- Basis of partner's interest: Initial draft. Sets out the three starting points for outside basis — IRC § 722 on contribution, IRC § 742 with IRC § 1012 on acquisition otherwise, and the § 705(b) alternative rule — the § 705(a) running adjustments including tax-exempt income and non-deductible expenditures, the § 733 reduction for current distributions, the § 752 treatment of liabilities as contributions and distributions, the zero floor and its consequences under § 731(a)(1), and the § 704(d) loss ceiling with its carryover. Records that IRC § 723 gives the partnership a transferred basis equal to the contributor's adjusted basis, not fair market value.
- Contribution of property and/or services to partnership (e.g., partnership's basis, property subject to indebtedness): Initial draft. Sets out the IRC § 721(a) nonrecognition rule and its § 721(b) investment company exception, the § 722 and § 723 substituted and transferred bases, the Reg. § 1.721-1(b) treatment of a capital interest received for services as income under § 61 and as a § 707(c) guaranteed payment where the services were rendered to the partnership, the § 704(c)(1)(A) requirement to allocate built-in gain and loss to the contributor and the § 704(c)(1)(B) seven-year rule on distribution to another partner, the § 724 character preservation rules for unrealized receivables, inventory and capital loss property, and the § 752 consequences of contributing property subject to a liability.
- Disposition of partner's interest: Initial draft. Sets out the IRC § 741 default of capital treatment, the IRC § 751(a) recharacterisation of amounts attributable to unrealized receivables and inventory items with the § 751(c) and (d) definitions, the effect of Pub. L. 107-147 § 417(12) in striking the substantial appreciation test from § 741 in 2002 so that it now survives only in § 751(b), the treatment of relieved liabilities as amount realised under § 752, the buyer's cost basis under §§ 742 and 1012 against an unchanged inside basis unless § 754 is elected or § 743(d) applies, the § 743(b) adjustment and the § 743(d)(1) substantial built-in loss threshold, and the § 6050K reporting obligation.
- Dissolution of partnership (e.g., sale, death of partner): Initial draft. Records that Pub. L. 115-97 struck the technical termination in IRC § 708(b)(1)(B) for partnership taxable years beginning after 31 December 2017, so a partnership now terminates only where no part of its business continues to be carried on by any partner in a partnership. Sets out the § 708(b)(2) merger and division rules, the § 706(c) rule that the partnership year closes only as to a partner whose entire interest terminates, the § 736(a) and (b) division of liquidation payments between distributive share or guaranteed payment and payment for an interest in partnership property with the § 736(b)(2) and (3) carve-outs for unrealized receivables and goodwill, and the § 731 and § 732 recognition and basis consequences of liquidating distributions.
- Family partnerships: Initial draft. Records that Pub. L. 114-74 § 1102 struck the recognition rule out of IRC § 704(e)(1) and inserted it in different words in IRC § 761(b) for partnership taxable years beginning after 31 December 2015, renumbering the donee distributive share rule from § 704(e)(2) to § 704(e)(1), and that Reg. § 1.704-1(e) has not been conformed and still cross-refers to the pre-2016 numbering. Sets out the surviving rules: the § 704(e)(1) reasonable compensation and proportionality limits on a donee share, the § 704(e)(2) treatment of an intra-family purchase as a gift, and the regulation's tests for capital as a material income-producing factor, for what counts as a capital interest, and for real ownership.
- Filing requirements, due dates, penalties, and audit notice requirements: Initial draft. Sets out the IRC § 6031(a) return requirement and the § 6031(b) obligation to furnish partner statements by the return due date with the four exceptions to the bar on amending them, the § 6072(b) filing date, the § 6698 penalty computed per partner per month with its 12-month cap and reasonable cause defence at the amount applying to returns required to be filed in 2027, the § 6222 consistency requirement enforced as a math error with the § 6213(b)(2) abatement right disapplied, the § 6223 designation of a partnership representative with sole authority, and the repeal by Pub. L. 114-74 § 1101 of the former §§ 6223 and 6224 partner notice and participation rights for years beginning after 2017.
- Partner's dealings with partnership (e.g., exchange of property, guaranteed payments): Initial draft. Sets out the IRC § 707(a)(1) rule for a partner transacting other than as a partner and the § 707(a)(2) disguised sale and disguised payment rules, the § 707(c) definition of a guaranteed payment and its limitation to IRC §§ 61(a) and 162(a), the Reg. § 1.707-1(c) timing rule tying the partner's inclusion to the partnership year of deduction and the rule that a guaranteed payment is a distributive share of ordinary income for every other purpose, and the § 707(b)(1) disallowance of losses and § 707(b)(2) ordinary income treatment of gains in more-than-50-percent controlled partnership transactions.
- Partnership formation (e.g., partnership agreement, general vs. limited partners, capital contributions): Initial draft. Sets out the IRC § 761(a) definition of a partnership and the election to exclude an unincorporated organization from subchapter K, the § 761(c) rule that a partnership agreement includes modifications made up to the unextended return due date, the § 704(a) primacy of the agreement in fixing distributive shares, the § 709(a) denial of any deduction for organization and syndication costs with the § 709(b) election allowing $5,000 plus 180-month amortisation of organizational expenses only, the § 709(b)(3) definition of an organizational expense, the § 709(b)(2) treatment on early liquidation, and the distinction between general and limited partners with its § 1402(a)(13) consequence.
- Partnership cancellation of debt: Initial draft. Sets out the IRC § 61(a)(11) inclusion of discharge income, the IRC § 108(a)(1) exclusions, the § 108(b) attribute reduction order, and the § 108(d)(6) rule that the exclusions and attribute reductions are applied at the partner level — contrasted with the § 108(d)(7)(A) corporate-level treatment for an S corporation, under which no basis increase reaches the shareholder. Explains the interaction with § 752, under which the discharge also reduces the partner's share of liabilities, and with § 703(b), under which the § 108(b)(5) and (c)(3) elections belong to each partner rather than to the partnership.
- Partnership income, expenses, distributions, and flow-through (e.g.,self- employment income): Initial draft. Sets out the IRC § 701 absence of entity tax, the IRC § 702(a) separately stated items and the § 702(b) conduit rule for character, the § 703(a) computation of partnership taxable income and the deductions denied to it, the § 703(b) allocation of elections between partnership and partner, the § 704(a) and (b) determination of distributive share and the § 704(d) basis limitation on losses, the § 705(a) outside basis mechanics and the § 752 treatment of liabilities as contributions and distributions, the § 731 recognition rules on distributions, and the IRC § 1402(a)(13) limited partner exclusion from self-employment income.
- Partnership level audit and opt-out: Initial draft. Sets out the IRC § 6221(a) rule that partnership-related adjustments, the tax attributable to them and any related penalties are determined at the partnership level; the § 6221(b) election out with its five conditions, its 100-statement limit and its eligible-partner list, and the § 6221(b)(2)(A) treatment of S corporation partners; the § 6225 imputed underpayment computed by netting adjustments and applying the highest rate for the reviewed year, payable by the partnership in the adjustment year; the § 6225(c) modification procedures; the § 6226 push-out election within 45 days of the notice of final partnership adjustment; and the § 6227 administrative adjustment request.
- Accumulated earnings tax: Initial draft. Sets out the IRC § 531 rate and the fact that it applies to accumulated taxable income as defined in § 535 rather than to the accumulated balance of earnings and profits, the § 532 corporations reached and excepted, the § 533 evidentiary presumptions, the § 535(a) computation with the dividends paid deduction and the accumulated earnings credit, the § 535(c)(1) reasonable-needs credit and the § 535(c)(2) and (3) minimum credits including the reduced figure for listed service corporations and the denial of a reasonable-needs credit to a mere holding or investment company, and the § 537(a) meaning of reasonable needs.
- Corporate minimum tax credit: Initial draft. Sets out the IRC § 53(a) and (b) minimum tax credit as the excess of prior years' minimum tax over credits already taken, the § 53(c) limitation to the excess of regular tax over tentative minimum tax, the § 53(e) modifications for corporations substituting years beginning after 2022 and adding the § 59A tax to the regular tax figure, the § 55(a) imposition and the § 55(b)(2) tentative minimum tax at 15 percent of adjusted financial statement income for an applicable corporation and zero for every other corporation, and the § 59(k)(1) definition of an applicable corporation with the billion-dollar three-year average test and the fact that the status once acquired is not re-tested from scratch.
- Earnings and profits: Initial draft. Sets out the IRC § 316(a) definition of a dividend by reference to current and accumulated earnings and profits with the rule that a distribution comes from the most recently accumulated earnings and profits, the § 312(a) reduction on a distribution and the § 312(b) treatment of appreciated property, the § 312(k) straight-line depreciation override and the § 312(n) economic adjustments, and the Reg. § 1.312-6 rules that the computation follows the corporation's accounting method and that tax-exempt income is included.
- Estimated tax payments: Initial draft. Sets out the IRC § 6655(a) addition to tax computed at the § 6621 underpayment rate, the § 6655(b) measurement of the underpayment and the period running to the fifteenth day of the fourth month after the year end, the § 6655(c) four instalments with the December fourth date, the § 6655(d) required annual payment at the lesser of the current or prior year figure, the § 6655(g)(2) definition of a large corporation by reference to $1,000,000 of taxable income in any of the three preceding years and the § 6655(d)(2) denial of the prior-year branch with the first-instalment exception and its recapture, the § 6655(e) annualised income and adjusted seasonal installments with their own recapture, the § 6655(f) de minimis rule, and the § 6655(g)(1) definition of tax.
- Filing requirements, due dates, and penalties: Initial draft. Sets out the IRC § 6072(a) fourth-month filing date for C corporations, the Pub. L. 114-41 § 2006(a)(3)(B) deferral that kept June 30 corporations on the third-month date for taxable years beginning before 1 January 2026 and the fact that it expires with the year beginning 1 July 2026, the Reg. § 1.6081-3(a) automatic six-month extension with the Reg. § 1.6081-3(e) seven-month exception expiring on the same terms, the IRC § 6651(a)(1) and (a)(2) additions to tax, the § 6651(c)(1) coordination that stops them accumulating, the minimum addition for a return more than 60 days late at the amount applying to returns required to be filed in 2027, and the Reg. § 301.6011-5 electronic filing requirement.
- Liquidations and stock redemptions: Initial draft. Sets out the IRC § 302(a) exchange treatment conditional on one of the five § 302(b) tests, the § 302(b)(1) meaningful reduction test, the § 302(b)(2) substantially disproportionate test with its two 80 percent ratios and 50 percent voting limitation, the § 302(b)(3) complete termination with the § 302(c)(2) family attribution waiver and its ten-year condition, the § 318(a) attribution rules that decide most redemption questions, and on the liquidation side the § 331 and § 336 double recognition, the § 334(a) fair market value basis, and the § 332 and § 337 nonrecognition for a subsidiary liquidating into an 80-percent distributee.
- Shareholder dividends, distributions, and recognition requirements: Initial draft. Sets out the IRC § 301(b) measurement of the amount distributed with its reduction for liabilities, the § 301(c) three tiers of dividend, return of capital and gain, the § 301(d) fair market value basis to the recipient, the § 311(a) and (b) asymmetry under which a corporation recognises gain on appreciated property and no loss on depreciated property, the § 305(a) exclusion for stock dividends with the § 305(b) exceptions, the § 1(h)(11) definition of qualified dividend income, and the § 246(c) holding period condition that qualified dividend treatment borrows.
- Special deductions and credits (e.g., dividends received deduction, charitable deduction): Initial draft. Sets out the IRC § 243(a) and (c) dividends received deduction rates, the § 243(c)(2) definition of a 20-percent owned corporation which begins at exactly 20 percent by vote and value, the § 243(b) conditions for a qualifying dividend on which the 100 percent rate depends — affiliated group membership and an election binding on every member — the § 246(b) taxable income limitation applied separately at 65 and 50 percent with the § 246(b)(2) net operating loss exception, the § 246(c) holding period, and the corporate charitable deduction as rewritten by Pub. L. 119-21 § 70426 to add a 1 percent floor beneath the 10 percent ceiling for taxable years beginning after 2025.
- Debt discharge: Initial draft. Sets out IRC § 108(d)(7)(A), under which the exclusions and attribute reductions are applied at the corporate level and an excluded amount is not taken into account under IRC § 1366(a), the IRC § 108(d)(7)(B) rule treating a loss suspended under IRC § 1366(d)(1) as a net operating loss for attribute reduction, and IRC § 108(d)(7)(C) on debt basis for the purposes of IRC § 108(e)(6). Records that the words closing IRC § 108(d)(7)(A) were added by Pub. L. 107-147 § 402(a) to reverse Gitlitz v. Commissioner.
- Election procedure: Initial draft. Sets out the IRC § 1362(a) election and the requirement that all shareholders on the day of the election consent, the § 1362(b) timing with its rule that a late election is an election for the following year, the § 1362(b)(5) authority to treat a late election as timely for reasonable cause, the Reg. § 1.1362-6 mechanics of Form 2553 and the contents of a shareholder consent, and the Reg. § 1.1362-6(a)(2)(ii) rule that a new corporation's taxable year begins when it first has shareholders, acquires assets or begins doing business.
- Income, expenses and separately stated items: Initial draft. Sets out IRC § 1363(a) and (b) on the corporation's own computation, the deductions denied to it through IRC § 703(a)(2), the IRC § 1366(a) split between separately stated and nonseparately computed items with the character and gross-income rules of § 1366(b) and (c), the working list in Reg. § 1.1366-1(a)(2), the per-day allocation and terminating election of IRC § 1377(a), and the IRC § 1372 fringe benefit rule. Records the general amendment of IRC § 68 by Pub. L. 119-21 § 70111, which first operates in taxable years beginning after 31 December 2025.
- Non-cash distributions: Initial draft. Sets out the route by which IRC § 1371(a) brings IRC § 311 to bear on an S corporation distribution of property: gain recognised under IRC § 311(b)(1) as if the property were sold at fair market value and passed through under IRC § 1366, no loss recognised under IRC § 311(a), the amount of the distribution measured under IRC § 301(b) with the reduction for liabilities and the IRC § 336(b) floor, and the shareholder's fair market value basis under IRC § 301(d).
- Shareholder's basis: Initial draft. Sets out the IRC § 1367(a) increases and decreases with the Reg. § 1.1367-1(f) ordering and the Reg. § 1.1367-1(g) elective ordering, the IRC § 1366(d) loss limitation and its indefinite carryover, the reduction and restoration of debt basis under IRC § 1367(b)(2) and Reg. § 1.1367-2, the Reg. § 1.1366-2(a)(2) bona fide indebtedness test and the rule that a guarantee creates no basis, the open account debt threshold, and the starting basis of stock taken for services under IRC § 83(a) or inherited under IRC § 1014 as modified by IRC § 1367(a)(4).
- Treatment of distributions: Initial draft. Sets out IRC § 1368(a) to (e) — the basis-recovery rule where the corporation has no accumulated earnings and profits, the three-tier ordering where it has them, the accumulated adjustments account and its net negative adjustment rule, the proration of the account among distributions, and the election to distribute earnings first — with the Reg. § 1.1368-2(a)(5) ordering of adjustments to the account and the Reg. § 1.1368-1(f) elections, and IRC § 1371(c) and (e) on earnings and profits and post-termination distributions.
- Requirements to qualify (e.g., qualifying shareholders): Initial draft. Sets out the five conditions in IRC § 1361(b)(1) — domestic corporation, not an ineligible corporation, no more than 100 shareholders, only permitted shareholders, one class of stock — with the § 1361(c)(1) family aggregation rule, the § 1361(c)(2)(A) list of eligible trusts, and the § 1361(c)(4) rule that differences in voting rights alone do not create a second class.
- Revocation, termination and reinstatement: Initial draft. Sets out the three ways an election ends under IRC § 1362(d) — revocation by more than one-half of the shares, cessation of small business corporation status effective on the date of cessation, and the three-year passive investment income test — with the IRC § 1362(e) S termination year and its daily allocation, closing-of-the-books election and mandatory close on a 50 percent ownership change, the IRC § 1362(f) inadvertent termination relief, and the IRC § 1362(g) five-year waiting period. Records that the IRC § 481(d) and IRC § 1371(f) eligible terminated S corporation rules are confined to revocations made in the two-year window that closed on 21 December 2019.
- ACA compliance: Initial draft. Sets out the IRC § 4980H(c)(2) applicable large employer test measured on the preceding calendar year with its seasonal worker exception and IRC § 414 aggregation, the IRC § 4980H(c)(4) 30-hour definition of a full-time employee, the two assessable payments in § 4980H(a) and (b) with the reduction by 30 and the indexation in § 4980H(c)(5), the IRC §§ 6055 and 6056 reporting obligations, and the IRC § 45R small employer credit with its 2026 figure from Rev. Proc. 2025-32 § 3.09.
- Advice on accounting methods and procedures (e.g., explanation of requirements): Initial draft. The advisory counterpart to 2.2.4.d. Sets out the Reg. § 1.446-1(a)(2) clear reflection standard and the generally accepted accounting principles safe harbour with its consistency condition, the practical sequence for advising on a method change, the IRC § 481(b)(1) three-year allocation limit on tax where the adjustment is substantial, and what the automatic consent procedures buy that a self-help correction does not.
- Comingling (e.g., personal usage of business accounts, separation of business and personal accounts): Initial draft. Sets out the IRC § 262(a) bar on personal expenses and the Reg. § 1.183-2(b)(1) businesslike-manner factor that makes separate accounts evidence of profit motive, the IRC § 183(d) presumption and its horse variant, the IRC § 280A(a) dwelling unit rule, the constructive distribution consequence of personal payments from a corporation, and the IRM bank record reconciliation an examiner runs where the accounts are mixed.
- Deductions and credits for tax planning (e.g., timing of income and expenses, NOL, depreciation versus IRC Section 179 versus bonus depreciation): Initial draft. Sets out the order in which the loss limitations operate — basis, at-risk, passive activity, then IRC § 461(l) — and the three ways to recover asset cost with the reasons to prefer each, together with the IRC § 172 carryforward and 80 percent rules with their ordering, the IRC § 179(b)(3) income limitation, the IRC § 168(k)(7) election out, and the IRC § 38 credit ordering and carryover.
- Life cycle of the business (e.g., formation, dissolution): Initial draft. Follows the business through formation, election, operation and exit — the IRC § 195 and § 248 start-up and organisational rules with their common structure, the IRC § 1362(b) election window and the trap where an election in it is treated as made for the following year, the IRC § 1362(d) revocation timing and the § 1362(g) five-year bar, and the divergence at dissolution between IRC §§ 336 and 331 for a corporation and IRC §§ 708 and 731 for a partnership.
- Payments and deposit obligations (e.g., employment tax, excise tax): Initial draft. Sets out the IRC § 3301 FUTA rate on the IRC § 3306(b)(1) wage base with the IRC § 3302 state credit and its 90 percent ceiling and credit reduction mechanism, the Reg. § 31.6302-1 monthly and semi-weekly deposit schedules with the lookback period that fixes them, the $100,000 next-day rule and the status change it forces, the $2,500 de minimis relief, and the IRC § 6656 penalty tiers.
- Record-keeping requirements (e.g., mileage log, accountable plans): Initial draft. Sets out the Reg. § 1.62-2 accountable plan requirements of business connection, substantiation to the payor and return of excess, with the two reasonable period safe harbours and the rule that an employee cannot convert a nonaccountable plan by voluntary substantiation, together with the Reg. § 1.274-5T adequate records standard, the contemporaneous recording requirement and the two-part alternative where records fall short.
- Related party transactions: Initial draft. The advisory counterpart to 2.2.4.h. Sets out the IRC § 482 allocation power and the Reg. § 1.482-1(b)(1) arm's length standard, the IRC § 162(a)(1) reasonable compensation limit and the IRC § 301(c) constructive distribution that follows a failed deduction, the IRC § 707(a)(2) disguised payment and disguised sale rules, and the Reg. § 1.469-2(f)(6) self-rental rule that recharacterises income without recharacterising loss.
- Reporting and filing obligations (e.g., extended returns and potential penalties, international information returns, Form 1099 series, Form 8300): Initial draft. Sets out the IRC § 6072 due dates and the IRC § 6081 extension with its payment condition, the per-owner per-month late filing penalties in IRC §§ 6698 and 6699 at the Rev. Proc. 2025-32 figures for returns filed in 2027, the IRC § 6721 and § 6722 information return and payee statement penalties with their correction tiers and intentional disregard floor, the IRC § 6050I cash reporting requirement, and the international information return penalties in IRC §§ 6038, 6038A and 6038D.
- Selection of business entity (e.g., benefits and detriments): Initial draft. Sets out the four axes on which entity choice actually turns — the IRC § 11(b) corporate rate against single-level taxation, the IRC § 1402 self-employment tax treatment of each form, the IRC § 199A computation and its different mechanics by entity, and the flexibility differences in allocation, basis and exit — together with the IRC § 1361(b) eligibility limits that decide whether the S election is available at all.
- Transfer of property in or out of the business (e.g., contributed property, distributions): Initial draft. Sets out IRC § 351 with its control requirement, boot rule and the IRC § 357(c) trap where liabilities exceed basis, against IRC § 721 with neither a control requirement nor a time limit; the carryover basis rules in IRC §§ 362 and 723; the IRC § 704(c) allocation of built-in gain and its seven-year distribution rule; and the exit asymmetry between IRC § 311(b) corporate gain recognition and the IRC §§ 731 and 732 partnership rules.
- Type of industry (e.g., specified service business owners): Initial draft. Sets out the three different industry lists that operate in the Code and shows they are not interchangeable — the IRC § 199A(d)(2) specified service trade or business list, the IRC § 1202(e)(3) exclusions from a qualified trade or business, and the Reg. § 1.448-1T(e)(4) qualified personal service corporation fields — with the IRC § 199A(d)(3) applicable percentage phase-out, and the industry-specific regimes in IRC §§ 460, 613 and 263A.
- Worker classification (i.e. independent contractor versus employee, outside sales, full-time vs part-time): Initial draft. Sets out the IRC § 3121(d) definition of employee in its three limbs — corporate officers, the common law test, and the four statutory employee categories with their two conditions and two exclusions — the IRC § 3508 statutory nonemployee treatment of qualified real estate agents and direct sellers with its written contract requirement, and the IRC § 3509 reduced-rate assessment for a misclassification with the doubling where reporting requirements were also missed.
- Balance sheet (e.g., proofing beginning and ending balances, relationship to income statement and depreciation): Initial draft. Sets out the IRM 4.10.3.10.1 accounting equation and definitions, the Schedule L requirement that the balance sheet agree with the books and the under-$250,000 exception, the IRM 4.10.3.10.2 first step of determining whether a balance sheet is tax based or book based with its three proofs, the IRM 4.10.3.10.3 criteria for selecting accounts, and the depreciation roll-forward and liability-account techniques that find omitted income and omitted Schedule M-1 items.
- Depreciation recovery (e.g., recapture, IRC Section 280F): Initial draft. Sets out the IRC § 1016(a)(2) allowed-or-allowable rule and the IRC § 1245(a)(2) recomputed basis that follows from it, the IRC § 1245 and § 1250 recapture provisions with their different mechanics, the IRC § 280F(b) drop to the alternative depreciation system and its excess depreciation recapture when qualified business use falls to half or less, the Reg. § 1.179-1(e)(1) recapture of an expensing election, and the 2026 IRC § 280F(a) limitation tables from Rev. Proc. 2026-15.
- Income statement: Initial draft. Sets out the IRM 4.10.3.7.6 definition of the profit and loss statement and the document chain from general ledger to return, the Reg. § 1.6001-1(a) and Reg. § 1.446-1(a)(4) records requirements, the Reg. § 1.61-3(a) definition of gross income from a business as sales less cost of goods sold, the limits on what cost of goods sold may absorb, and the IRM 4.10.4.2.3.5 and 4.10.4.2.3.6 reconciliation and gross receipts tests with the gross profit ratio.
- Loans to and from owners: Initial draft. Sets out the IRC § 7872 treatment of below-market gift, compensation-related and corporation-shareholder loans with the two $10,000 de minimis exceptions and the $100,000 net investment income cap on gift loans, the IRC § 1367(b)(2) reduction and restoration of an S corporation shareholder's debt basis with the Reg. § 1.1367-2 open account debt rule, and the IRM 4.10.3.10.4 examination technique for related party balances in receivables.
- Method of accounting and changes (e.g., accrual, cash, hybrid, Form 3115): Initial draft. Sets out the IRC § 446(a) book conformity rule and the § 448(a) prohibition with its farming, qualified personal service corporation and gross receipts exceptions at the 2026 figure from Rev. Proc. 2025-32 § 3.30, the Reg. § 1.448-1T(e)(4) and (e)(5) function and ownership tests, the Reg. § 1.446-1(e)(2) definition of a change in method and the list of what is not one, the Form 3115 consent procedure with its terms and conditions, and the IRC § 481(a) adjustment.
- Pass-through activity (e.g., K-1, separately stated items, non-deductible expenses): Initial draft. Sets out the IRC § 702(a) and § 1366(a)(1) separately stated items with the test that decides which items qualify, the IRC § 703(a)(2) deductions a partnership may not take, the IRC § 705 and § 1367 basis adjustments including the reduction for nondeductible non-capital expenditures, the IRC § 704(d) and § 1366(d) loss limitations and the debt basis tier that only subchapter S provides, and the IRC § 6222 consistency requirement enforced by math error assessment.
- Proper business type, and the use of classification codes and year to year comparison: Initial draft. Sets out the Reg. § 301.7701-2(b) per se corporation list and the Reg. § 301.7701-3(b) default classifications, the Form 8832 election with its 75-day and 12-month effective-date window and the 60-month limitation, the disregarded entity rule and its employment tax exception, the six-digit NAICS-based principal business activity code chosen by largest percentage of total receipts, and the IRM 4.10.4 horizontal and vertical ratio analyses with their 5 percent and 10 percent thresholds.
- Related party activity: Initial draft. Sets out the IRC § 267(a)(1) loss disallowance and the § 267(a)(2) matching rule for accrued expenses, the § 267(b) relationships with the § 267(c) attribution rules and the narrow § 267(c)(4) family definition, the § 267(d) transferee relief that makes a disallowed loss useless to the seller, the parallel partnership rules in § 707(b), the § 1239 conversion of gain to ordinary income on sales of depreciable property, the § 1031(f) two-year rule on related-party exchanges, and § 7872 on below-market loans.
- Basis of business assets: Initial draft. Sets out the IRC § 1012 cost rule and what enters cost under Reg. § 1.1012-1, the IRC § 1016(a) adjustments including the rule that depreciation reduces basis by the amount allowed but not less than the amount allowable, the IRC § 1014(a) date-of-death rule with its two elective valuation alternatives, and the IRC § 1015(a) dual basis for a gift that can produce neither gain nor loss.
- Capitalization and repair regulations (e.g., elections): Initial draft. Sets out the Reg. § 1.263(a)-3(d) betterment-restoration-adaptation test, the Reg. § 1.263(a)-3(e) unit of property rules that apply it to the building structure and to each building system separately, the three elections — de minimis under Reg. § 1.263(a)-1(f), small taxpayer under Reg. § 1.263(a)-3(h) and capitalisation consistent with books under Reg. § 1.263(a)-3(n) — the Reg. § 1.263(a)-3(i) routine maintenance safe harbor, and the Reg. § 1.168(i)-8(d)(2) partial disposition election that keeps a replaced component from being depreciated twice.
- Reconciliation of tax versus books (e.g., M-1, M-2, M-3): Initial draft. Sets out the IRM 4.10.3.8.1 statement of what Schedule M-1 reconciles and the different endpoint it has for a C corporation and for a pass-through, the Schedule M-3 triggers for corporations and partnerships including the partnership receipts test the corporate rule lacks, the partial relief for entities between $10 million and $50 million of assets, the three different things Schedule M-2 reports depending on the return, and the IRM audit techniques including the netting check and the prior and subsequent year comparison.
- Converted property: Initial draft. Sets out the Reg. § 1.167(g)-1 rule capping the depreciation basis of converted property at fair market value where that is lower, the Reg. § 1.165-9(b)(2) separate basis for determining loss on a later sale, the Reg. § 1.165-7(a)(5) parallel rule for a casualty, and the Reg. § 1.168(i)-4 treatment of a conversion in each direction — a fresh placed-in-service date on conversion to business use, and a deemed disposition without recapture on conversion to personal use.
- Disposition of property or assets: Initial draft. Sets out the IRC § 1001 computation of gain or loss and what enters the amount realised, the IRC § 1231(b) definition of property used in the trade or business and the IRC § 1231(a) netting that gives the best of both characters, the IRC § 1231(c) five-year lookback that recaptures earlier ordinary losses, and the IRC § 1245 and IRC § 1250 recapture rules with the IRC § 1(h)(6) unrecaptured gain that survives them.
- Like-kind exchange of business property: Initial draft. Covers IRC § 1031 from the business side: the confinement to real property by Pub. L. 115-97 § 13303 and what that means for a trade-in, the IRC § 1245(b)(4) ceiling on recapture in a deferred exchange, the Reg. § 1.168(i)-6 rule that the exchanged basis continues the relinquished property's recovery period while excess basis starts afresh, and the IRC § 1031(e) treatment of an interest in a partnership that has elected out of subchapter K.
- Business bad debts: Initial draft. Sets out IRC § 166(a) and the difference between a wholly worthless debt and a partially worthless one that requires a charge-off, the IRC § 166(b) basis measure, and the IRC § 166(d) recharacterisation of a non-corporate taxpayer's non-business debt as a short-term capital loss. Adds the Reg. § 1.166-5(b) proximate relation test, the Reg. § 1.166-1(e) prior inclusion requirement, and the Reg. § 1.166-2 evidence rules. Records that Reg. § 1.166-1(a)(2) still offers the reserve method that Pub. L. 99-514 § 805(a) repealed in 1986.
- Business rental deduction, including self-rentals: Initial draft. Sets out the IRC § 162(a)(3) rental deduction and its two conditions on title and equity, the IRC § 178 rule treating renewal options as part of the lease term where less than 75 percent of the acquisition cost is attributable to the remaining term, the IRC § 267(a)(2) matching rule for rent accrued to a related cash method landlord, and the Reg. § 1.469-2(f)(6) self-rental rule that recharacterises net rental income as non-passive without doing the same for a loss.
- Business travel, meals, and gift expenses: Initial draft. Sets out the IRC § 162(a)(2) travel deduction with the one-year rule that ends temporary status, the IRC § 274(a) disallowance of entertainment and club dues, the two IRC § 274(k) conditions on food and beverages and the IRC § 274(n) halving that follows, the IRC § 274(b) gift limit with its two exclusions and the partnership rule, and the IRC § 274(d) substantiation requirement. Records that IRC § 274(o) first bites in 2026: Pub. L. 115-97 § 13304(e)(2) applied it to amounts incurred or paid after 31 December 2025.
- Business travel, meals, and gift expenses: Adds the per diem substantiation rates from Notice 2025-54, opened at source today — the high-low rates and the meal portions of each, the federal per diem figure at which a locality becomes high-cost, the special transportation industry rates, and the incidental-expenses-only rate. Records that per diem substitutes for the amount only, leaving time, place and business purpose to be proved, and that the rates change on 1 October rather than 1 January.
- Casualties, thefts, and condemnations: Initial draft. Sets out the IRC § 165(a) deduction and the IRC § 165(c) limits on an individual, the Reg. § 1.165-7(b) measure of a casualty loss and the rule that business property is measured by each single identifiable item while a residence is not, the IRC § 165(e) year of a theft loss, and the IRC § 1033 deferral on an involuntary conversion with the wider like-kind test and three-year replacement period that IRC § 1033(g) gives to a condemnation of business real property.
- Depreciation, amortization, IRC Section 179, depletion and bonus depreciation: Initial draft. Sets out the IRC § 179 dollar limitation, phase-out and taxable income cap with the 2026 figures from Rev. Proc. 2025-32, the IRC § 168(k) bonus allowance and the conditions used property must meet, the IRC § 195 start-up rules and their interaction with IRC § 248, and the depletion regime under IRC §§ 611, 613 and 613A. Records that Pub. L. 119-21 § 70301 made bonus depreciation permanent at 100 percent by striking the phase-down table and the placed-in-service deadline.
- General business credits: Initial draft. Sets out the IRC § 38(a) structure and the IRC § 38(c)(1) limitation by reference to net income tax, the tentative minimum tax and a share of net regular tax liability above a floor, the IRC § 39(a)(1) one-year carryback and twenty-year carryforward, and three component credits — IRC § 44 disabled access, IRC § 41 research and IRC § 45R small employer health insurance. Records the IRC § 280C(c) rule that a research credit reduces the deduction for the same expenditure unless a reduced credit is elected, and that IRC § 280C(c)(1) now refers to IRC § 174A.
- Employment taxes: Initial draft. Sets out the IRC § 3101 and § 3111 FICA rates on employee and employer, the IRC § 3101(b)(2) additional hospital insurance tax that the employer does not match, the IRC § 3301 FUTA rate with the IRC § 3306(b)(1) wage base and successor rule and the IRC § 3302 credit structure with its 90 percent cap and credit reduction, and the IRC § 6672 penalty on a responsible person. Notes that only the employer's share is deductible under IRC § 164 and IRC § 275(a)(1).
- Home office: Initial draft. Sets out the IRC § 280A(a) disallowance and the IRC § 280A(c)(1) exception with its exclusive and regular use requirement, the convenience of the employer condition for an employee, and the administrative or management activities test, together with the IRC § 280A(c)(5) gross income limitation and its carryover. Sets out the Rev. Proc. 2013-13 safe harbor with its square footage cap, its year-by-year irrevocable election, and the depreciation and Schedule A consequences of using it.
- Insurance expense: Initial draft. Sets out the Reg. § 1.162-1(a) treatment of business insurance premiums with the two qualifications in the same sentence, the IRC § 264(a) disallowances where the taxpayer is a beneficiary or has borrowed against a policy, the IRC § 101(j) cap on the exclusion for an employer-owned life insurance contract with its notice and consent exception and the IRC § 6039I reporting duty, and the Reg. § 1.263(a)-4(f) twelve-month rule that governs a prepaid premium.
- Business interest expense: Initial draft. Sets out the Reg. § 1.163-8T tracing rule that allocates interest by the use of the borrowed funds, the IRC § 163(j)(1) limitation and its three components, the IRC § 163(j)(2) indefinite carryforward, the IRC § 163(j)(3) small business exemption keyed to IRC § 448(c), and the IRC § 163(j)(8) definition of adjusted taxable income. Records that Pub. L. 119-21 § 70303(a) restored the depreciation, amortization and depletion add-back permanently for taxable years beginning after 31 December 2024.
- Net operating loss deduction: Initial draft. Sets out the IRC § 172(c) definition and the IRC § 172(d) modifications that make a net operating loss different from a book or economic loss, in particular the IRC § 172(d)(4) restriction on non-business deductions of a non-corporate taxpayer and the items IRC § 172(d)(4)(A), (C) and (D) do and do not treat as attributable to the trade or business. Records the three carryover regimes since 2017, the IRC § 172(b)(1)(C) survival of the older rules for a non-life insurance company, and the IRC § 172(b)(3) waiver election that most taxpayers no longer need.
- Officers and employees' compensation: Initial draft. Sets out the two IRC § 162(a)(1) tests, the IRC § 162(m) cap on remuneration of a covered employee of a publicly held corporation with the expansion to the five highest paid employees for taxable years beginning after 31 December 2026, the IRC § 132(a) list of excludible fringe benefits and the IRC § 79(a) group-term life figure, the IRC § 3121(d)(3) statutory employee categories with their two disqualifying conditions, and the IRC § 267(a)(2) matching rule that defers a deduction for a payment to a related cash method payee.
- Qualified business income: Initial draft. Sets out the IRC § 199A(a) computation and the IRC § 199A(b)(2) wage and property limitation with the IRC § 199A(b)(3) threshold and phase-in, the IRC § 199A(d)(2) definition of a specified service trade or business, and the IRC § 199A(b)(6) definition of qualified property. Records three changes made by Pub. L. 119-21 § 70105: the deduction is permanent, the phase-in range widened from $50,000 and $100,000 to $75,000 and $150,000, and a new IRC § 199A(i) gives a minimum deduction to a taxpayer with active qualified business income above a floor.
- Taxes, assessments and penalties: Initial draft. Sets out the four categories of IRC § 164(a), the catch-all for other state, local and foreign taxes paid in carrying on a trade or business, and the rule capitalising a tax paid on an acquisition. Records that the IRC § 164(b)(6) cap excepts business property taxes and foreign income taxes by its own flush text, that its heading still says 2018 through 2025 although Pub. L. 119-21 § 70120(a)(1) struck the end date, the IRC § 275(a) list of taxes never deductible, and the IRC § 162(f) disallowance of government penalties with its three exceptions.
- Applying for IRS tax-exempt status (e.g., Form 1023, Form 1024): Initial draft. Sets out which form goes with which paragraph of IRC § 501(c) under Rev. Proc. 2026-5 § 6.06, the 15-month notice of Treas. Reg. § 1.508-1(a)(2) extended by the automatic 12 months of Treas. Reg. § 301.9100-2(a)(2)(iv) to make 27, the effective-date consequence of missing it, the Form 1023-EZ eligibility worksheet, the separate IRC § 506 Form 8976 notice for social welfare organisations, the 2026 user fee schedule, the 30-day protest of a proposed adverse determination, and IRC § 6104 public inspection.
- Filing requirements (e.g., Form 990 series): Initial draft. Sets out the IRC § 6033(a)(1) annual return, the gross receipts and asset tests that pick a form in the 990 series, the IRC § 6033(a)(3) mandatory exceptions, the IRC § 6072(e) due date and the automatic six-month Form 8868 extension, the separate Form 990-T obligation at $1,000 of UBTI gross income under Treas. Reg. § 1.6012-2(e), and the IRC § 6652(c) penalties at the inflation-adjusted amounts in Rev. Proc. 2025-32 § 3.53 for returns required to be filed in 2027.
- Vehicle use and expenses: Initial draft. Sets out the choice between actual expenses and the optional mileage method authorised by Reg. § 1.274-5(j)(2), what the mileage rate subsumes, the IRC § 280F(a) caps on depreciation of a passenger automobile with the treatment of unrecovered basis, and the IRC § 280F(b) rule that drops listed property to the alternative depreciation system and recaptures excess depreciation when qualified business use falls to half or less. The current-year figures are stated: the 2026 mileage rates and basis reduction from Notice 2026-10 and the 2026 IRC § 280F(a) limitation tables and lease inclusion figure from Rev. Proc. 2026-15.
- Vehicle use and expenses: Adds the 2026 annual figures, both opened at source today. Notice 2026-10 supplies the business, charitable and medical mileage rates, the portion of each business mile treated as depreciation, and the maximum standard automobile cost for a fixed and variable rate plan. Rev. Proc. 2026-15 supplies both IRC § 280F(a) limitation tables for automobiles placed in service in 2026 and the fair market value at which the lease inclusion table begins, and records that the two tables now differ only in the first year and only by the fixed IRC § 168(k)(2)(F)(i) amount.
- Qualifying for and maintaining tax-exempt status (e.g., IRC 501(c)): Initial draft. Sets out the two IRC § 501(c)(3) tests separately — the organizational test read off the articles under Treas. Reg. § 1.501(c)(3)-1(b), including the dedication-of-assets requirement, and the operational test read off activities under Treas. Reg. § 1.501(c)(3)-1(c) — then the inurement and private benefit limits, the substantial part test against the IRC § 501(h) expenditure election, the absolute campaign intervention ban, the IRC § 4958 intermediate sanctions, and automatic revocation under IRC § 6033(j).
- Unrelated business taxable income: Initial draft. Sets out the three cumulative tests of IRC § 513(a) and Treas. Reg. § 1.513-1, the statutory exceptions for volunteer labour, member convenience and donated merchandise, the IRC § 513(c) fragmentation rule, qualified sponsorship payments under IRC § 513(i), the IRC § 512(b) modifications that pull most investment income back out, the IRC § 512(b)(13) controlled entity rule, IRC § 514 debt-financed income, and the IRC § 512(a)(6) silo rule with the NAICS identification method of Treas. Reg. § 1.512(a)-6(b).
- Cancellation of business debt: Initial draft. Sets out IRC § 61(a)(11) and the IRC § 108(a) exclusions with their order of precedence and the insolvency cap, the IRC § 108(b) attribute reduction and the IRC § 108(b)(5) election, and the four IRC § 108(e) rules a business meets most often — no other insolvency exception, the lost deduction rule, the related-party acquisition rule and the purchase price adjustment. Adds the elective IRC § 108(c) exclusion for qualified real property business indebtedness and the IRC § 108(g) farm rules.
- Cost of goods sold: Initial draft. Sets out when inventories are required under Reg. § 1.471-1(a), the title test that decides what is in them, the two IRC § 471(a) tests and the valuation bases of Reg. § 1.471-2(c), the identification conventions with the FIFO default for commingled goods, the IRC § 472 LIFO mechanics with the conformity condition and the three-year spread on adoption, the IRC § 263A scope and exceptions, and the IRC § 471(c) and IRC § 263A(i) small business exemptions keyed to the IRC § 448(c) gross receipts test.
- Net income, net operating losses, and loss limitations: Initial draft. Sets out the four loss limitations in the order they apply — basis under IRC § 704(d) or IRC § 1366(d), amount at risk under IRC § 465, passive activity under IRC § 469, and excess business loss under IRC § 461(l) — with the IRC § 172 carryforward rules and the IRC § 172(a)(2) cap. Records that Pub. L. 119-21 § 70601(a) struck the expiry date from IRC § 461(l)(1), making the excess business loss limitation permanent, and that the rendered statutory text at LII is two amendments stale on that point.
- Gross receipts and other income: Initial draft. Sets out IRC § 61(a) and the Reg. § 1.61-3(a) computation of gross income from a manufacturing, merchandising or mining business, the prohibition on netting selling expenses into it, the constructive receipt rule of Reg. § 1.451-2(a) for cash method businesses, and the IRC § 451(b) financial statement conformity and IRC § 451(c) advance payment rules for accrual method businesses. Records the two 2026 information reporting changes that move in opposite directions: the IRC § 6041 threshold raised to $2,000 and the IRC § 6050W threshold restored as if the reduction had never been enacted.
- Disaster-area provisions (drought, flood, other weather-related conditions): Initial draft. Separates the four distinct reliefs a weather event can trigger — the IRC § 451(g) one-year deferral, IRC § 1033(e) involuntary conversion treatment with its four-year replacement period, the IRC § 165(i) election to claim a disaster loss in the preceding year, and the IRC § 7508A postponement of deadlines — and adds the IRC § 1033(f) rule allowing other farm property as replacement where reinvestment in livestock is not feasible, the IRC § 1033(h)(2) wide replacement rule for business property in a disaster area, and the IRC § 139 exclusion.
- Depreciation for farmers: Initial draft. Sets out the farm-specific MACRS classes — 5-year machinery under IRC § 168(e)(3)(B)(vii), 10-year single purpose agricultural structures and fruit- or nut-bearing trees and vines under IRC § 168(e)(3)(D) — the removal of the 150 percent declining balance requirement for farm property by Pub. L. 115-97 § 13203(b), the alternative depreciation system required of an electing farming business under IRC § 168(g)(1)(G), the IRC § 168(k)(5) specified plant election, and the IRC § 175 and § 180 expensing provisions.
- Farm income (e.g., self-raised livestock, crop insurance proceeds, subsidies, patronage dividends, conservation payments): Initial draft. Sets out gross income of farmers under Treas. Reg. § 1.61-4 with the raised-against-purchased distinction, the crop method and its deferred cost deduction, the IRC § 1231(b)(3) holding periods of 24 months for cattle and horses against 12 for other livestock with poultry excluded, the IRC § 451(f) crop insurance and IRC § 451(g) drought deferral elections, IRC § 1033(e) involuntary conversion treatment with its four-year replacement period, IRC § 126 conservation cost-sharing exclusion, IRC § 1385 patronage dividends, and the IRC § 77 Commodity Credit Corporation loan election.
- Farm rental: Initial draft. Sets out the IRC § 1402(a)(1) exclusion of real estate rentals from self-employment income and the two-condition exception for a farm landlord who materially participates — the arrangement must provide for it and it must in fact occur — then maps the three reporting outcomes: Schedule F with self-employment tax, Form 4835 for a non-participating crop-share landlord, and Schedule E for fixed cash rent. Adds the IRC § 469(c)(2) passive rule and the Treas. Reg. § 1.469-2(f)(6) self-rental rule.
- Farm tax computation (e.g., Schedule J, Schedule SE, estimated tax): Initial draft. Sets out the IRC § 6654(i) estimated tax regime for farmers — one installment due 15 January at 66⅔ percent of the current year's tax, the 1 March alternative substituted into IRC § 6654(h), and the express disregard of the prior-year safe harbour — the IRC § 6654(i)(2) two-thirds test measured on either year, the IRC § 1301 farm income averaging election, and self-employment tax on Schedule F income including the optional method.
- Employer and employee contributions: Initial draft. Separates the IRC § 402(g) elective deferral limit, which follows the individual across every employer, from the IRC § 415(c) annual additions limit, which applies per employer, and sets both against the IRC § 401(a)(17) compensation cap and the IRC § 404 employer deduction ceiling. Carries the 2026 amounts from Notice 2025-67, including the IRC § 414(v)(7) Roth catch-up wage threshold of $150,000 of 2025 wages.
- Non-discrimination rules: Initial draft. Separates the three tests a qualified plan must pass — IRC § 410(b) coverage, IRC § 401(k)(3) and § 401(m)(2) contribution testing, and IRC § 416 top-heavy testing — and sets out the IRC § 401(k)(12) safe harbours that buy an exemption from the second, the IRC § 414(q) highly compensated employee definition against the IRC § 416(i) key employee definition, and the IRC § 411(a)(2) vesting schedules.
- Prohibited transactions: Initial draft. Sets out the six categories of prohibited transaction in IRC § 4975(c)(1), the disqualified person definition in IRC § 4975(e)(2) with the narrow family definition of IRC § 4975(e)(6) that omits siblings, the 15 percent initial and 100 percent additional taxes with joint and several liability, the amount involved and correction definitions, the statutory exemptions of IRC § 4975(d) and their withdrawal for owner-employees under IRC § 4975(f)(6), and the wholly different IRA consequence under IRC § 408(e)(2).
- Qualified and non-qualified plans: Initial draft. Sets the three tax advantages of a qualified plan — employer deduction on contribution under IRC § 404, employee deferral until distribution under IRC § 402(a), and tax-free accumulation under IRC § 501(a) — against the conditions in IRC § 401(a), then the non-qualified alternative: IRC § 402(b) and IRC § 83 taxation of a funded arrangement, the IRC § 404(a)(5) matching deduction rule, and the IRC § 409A distribution, acceleration and election requirements with their 20 percent additional tax.
- Plans for self-employed persons (e.g., SEP and SIMPLE): Initial draft. Separates the SEP under IRC § 408(k), which is employer-funded with a three-of-five-years eligibility test and immediate vesting through the withdrawal rule of IRC § 408(k)(4), from the SIMPLE under IRC § 408(p), which is salary-reduction based with a two-preceding-years eligibility test, a required 3 percent match or elected 2 percent nonelective contribution, and the exclusive plan requirement. Carries the 2026 amounts from Notice 2025-67 and the SECURE 2.0 additions at IRC § 408(p)(2)(A)(iv) and the 4 percent applicable percentage for electing larger employers.
- Reporting requirements: Initial draft. Sets out the IRC § 6058(a) annual return and which of Form 5500, Form 5500-SF and Form 5500-EZ applies, the one-participant plan definition, the last-day-of-the-seventh-month due date and the Form 5558 extension, the Treas. Reg. § 301.6058-2 ten-return electronic filing threshold with its IRC § 414(b)-(o) aggregation, the IRC § 6057(a) registration statement on Form 8955-SSA, and the IRC § 6652(d) and (e) penalties as increased by SECURE Act § 403 for filings due after 2019.
- Commercial rentals versus residential rentals: Initial draft. Sets out the IRC § 168(e)(2)(A) 80 percent gross rental income test that decides residential status, the dwelling unit definition excluding transient establishments, the 27.5 and 39 year periods with their 30 and 40 year alternative depreciation system counterparts, the mid-month convention, and the asymmetry that qualified improvement property exists only for nonresidential buildings.
- Mixed used property/vacation home: Initial draft. Sets out the three regimes a mixed-use dwelling can fall into — the IRC § 280A(g) exclusion below 15 rental days, the IRC § 280A(c)(5) gross income cap where the unit is used as a residence, and ordinary rental treatment where it is not — with the IRC § 280A(d)(1) greater-of-14-days-or-10-percent test, the IRC § 280A(d)(2) personal use rules including the family and reciprocal use provisions, and the IRC § 280A(e) day-count allocation.
- Passive loss limitation (e.g., special $25,000 allowance, MAGI limits): Initial draft. Sets out the IRC § 469(a) disallowance with indefinite suspension under subsection (b), the IRC § 469(i) special allowance of $25,000 for active participation in rental real estate, its 50 percent phase-out above $100,000 of a modified adjusted gross income defined in IRC § 469(i)(3)(E), the $12,500 and $50,000 halving for married individuals filing separately with the living-apart condition, the 10 percent active participation floor, and the IRC § 469(g) release on a fully taxable disposition.
- Real estate professional qualifications: Initial draft. Sets out the two IRC § 469(c)(7)(B) tests — more than half of personal services in real property trades or businesses and more than 750 hours in them — the requirement that one spouse satisfy both separately on a joint return, the exclusion of employee services unless the employee is a 5-percent owner, and the point that qualifying only removes the per se passive rule, leaving material participation to be established property by property unless the Treas. Reg. § 1.469-9(g) aggregation election is made.
- Rental expenses (e.g., allocation between personal and rental, repair versus capitalized): Initial draft. Sets out the IRC § 212 authority for rental deductions and the Treas. Reg. § 1.212-1(b) rule that a vacant building held for rent still generates deductions, the Treas. Reg. § 1.167(a)-10(b) placed-in-service point measured by readiness rather than occupancy, the IRC § 280A(e) day-count allocation for mixed use, and the Treas. Reg. § 1.263(a)-3 improvement framework of betterment, restoration and adaptation with its three safe harbours.
- Rental income (e.g., deposits, pre-paid rent, not rented for profit): Initial draft. Sets out gross rental income under Treas. Reg. § 1.61-8 including the advance rental rule that overrides the accrual method, lease cancellation payments, lessee-paid expenses and lessee improvements as rent, against the IRC § 109 exclusion for improvements on lease termination with the IRC § 1019 basis consequence. Adds the security deposit analysis, the IRC § 467 accrual regime with its $250,000 threshold, and the IRC § 183(d) profit presumption.
- Distributable net income and accounting income: Initial draft. Distinguishes the IRC § 643(b) fiduciary accounting income figure, determined by the governing instrument and local law, from the IRC § 643(a) distributable net income figure that caps the distribution deduction and the beneficiaries' inclusion — with the capital gain exclusion in § 643(a)(3), the tax-exempt interest addition in § 643(a)(5), and the pro rata character flow-through in § 661(b).
- Filing requirements, tax years, and penalties: Initial draft. Sets out the three IRC § 6012(a) filing triggers for estates and trusts including the non-resident alien beneficiary trigger that ignores amounts, the IRC § 644 requirement that a trust use the calendar year against an estate's freedom to choose a fiscal year, the IRC § 645 election to treat a qualified revocable trust as part of the estate, and the IRC § 6654(l)(2) exemption from estimated tax for the first two years after death.
- Exclusions, exemptions, and deductions: Initial draft. Sets out the four IRC § 642(b) exemptions with the 2026 qualified disability trust figure from Rev. Proc. 2025-32 § 3.35 and the fact that the other three have never been indexed, the IRC § 642(c) charitable deduction with its two conditions of instrument authority and payment out of gross income, the IRC § 642(g) bar on double deductions with estate tax, and the IRC § 67(e) carve-out that survives the § 67(h) suspension.
- Income (e.g., allocations, corpus versus income): Initial draft. Sets out the Reg. § 1.643(b)-1 definition of income by reference to the instrument and local law with the traditional-principles limit on what an instrument may do, the recognition of unitrust and power-to-adjust statutes as reasonable apportionments of total return, and the three routes in Reg. § 1.643(a)-3(b) by which capital gains enter distributable net income together with the charitable rule in (c) and the loss netting rule in (d).
- Fraudulent trusts: Initial draft. Sets out the assignment of income principle that defeats every abusive trust arrangement, the IRS guidance that a trust is allowed no deduction an individual would be denied, the grantor trust provisions that collapse the typical structure without any need for a fraud finding, and the penalty structure from IRC § 6663 through the promoter penalties in §§ 6700 and 6701 to criminal liability under § 7201.
- Separately stated items (items reported on the K-1): Initial draft. Sets out the two-tier system in IRC § 662(a) with the proportionate reduction that applies where distributions exceed distributable net income, the character rule in IRC §§ 652(b) and 662(b) with the specific allocation exception and the allocation of deductions among classes, and the IRC § 642(h) pass-out of loss carryovers and excess deductions on termination.
- Trust types (e.g., simple/complex, grantor, irrevocable, tax shelters, foreign): Initial draft. Sets out the IRC § 641(b) computation rule and the foreign trust deeming provision, the IRC § 651(a) definition of a simple trust as a description of a year rather than of an instrument, the five grantor trust triggers in IRC §§ 673 through 677 with the IRC § 671 consequence that the items are reported by the owner, and the IRC § 7701(a)(30)(E) court and control tests that decide whether a trust is domestic or foreign.
- Filing requirements (Form 709): Initial draft. Sets out who must file under IRC § 6019 and the three categories of transfer that do not trigger it, the § 6075(b) due date with the automatic extension in § 6075(b)(2) and the death-year cutoff in § 6075(b)(3), payment by the donor under § 2502(c) at the unextended date under § 6151(a), the absence of any joint gift tax return, the GST allocation timing rules in § 2632, and the unlimited assessment period in § 6501(c)(9) for an unreported gift.
- Covered accounts (e.g., FBAR, Form 8938): Initial draft. Sets out what each regime actually covers — the IRC § 6038D(b) definition of a specified foreign financial asset and the Bank Secrecy Act's foreign financial account — with the branch rule, signature authority, non-account assets, indirect interests through entities, grantor trusts, and the categories that escape both forms entirely.
- Distinctions between FBAR and Form 8938 requirements: Initial draft. Compares the two regimes across the six axes on which they differ — who files, what is covered, what an interest is, the threshold structure, valuation and timing, and where the filing goes — including the territories point on which they define the United States differently, and the rule that neither filing substitutes for the other.
- Filing and reporting requirements and due dates (e.g., FBAR, Form 8938, Form 8865, Form 5471, Form 3520): Initial draft. Sets out the trigger and the clock for each of the international information returns an individual may face — the FBAR under the Bank Secrecy Act, Form 8938 under IRC § 6038D, Forms 5471 and 8865 under § 6038, Forms 3520 and 3520-A under § 6048, and the foreign gift report under § 6039F — with the valuation rules that differ between the FBAR and Form 8938 and the § 6038D(a) statutory floor that understates every regulatory threshold but one.
- International voluntary disclosure options: Initial draft. Sets out the two routes back into compliance — the streamlined filing compliance procedures in their foreign and domestic forms, and the Criminal Investigation Voluntary Disclosure Practice — with the willfulness certification that separates them, the three-year and six-year submission periods, the 5 percent Title 26 miscellaneous offshore penalty, the timeliness bars, and the fact that neither route acknowledges receipt or guarantees anything.
- Ownership of a foreign corporation (GILTI, IRC Section 965 transition tax): Initial draft. Covers the two thresholds that matter — the IRC § 951(b) 10 percent United States shareholder test and the § 957(a) controlled foreign corporation test — the § 951A inclusion as rewritten by Pub. L. 119-21 § 70323, which renamed global intangible low-taxed income as net CFC tested income and repealed the qualified business asset investment offset outright, the § 250 deduction available to corporations only, the § 962 election by which an individual reaches corporate treatment, and the § 965 transition tax now spent except for its installment stream.
- Potential penalties (e.g., failure to file, underreporting, substantially incomplete, statute of limitations, reduction of tax attributes): Initial draft. Sets out the penalty regime attached to each international information return — IRC § 6038D(d) for Form 8938, § 6038(b) and (c) for Forms 5471 and 8865 with its reduction of the foreign tax credit, § 6677 for foreign trusts, § 6039F(c) for unreported foreign gifts, the FBAR penalties in 31 U.S.C. §§ 5321 and 5322 — together with the 40 percent accuracy-related penalty in § 6662(j) and the open-ended limitation period in § 6501(c)(8).
- Estate filing requirements and due dates (Form 706, Form 1041): Initial draft. Sets out the three returns a death produces and their deadlines — the final Form 1040, the estate's Form 1041 under IRC §§ 6012(a)(3) and 6072(a), and Form 706 under §§ 6018(a) and 6075(a) — with the § 6018(a)(3) reduction of the filing threshold by lifetime gifts, the § 441(e) constraint on an estate's fiscal year, the § 645 election, and the extensions available under §§ 6081 and 6161.
- Gross estate, taxable estate (calculations and payments), unified credit, life insurance, and filing requirements: Initial draft. Sets out the estate tax computation from the gross estate under IRC §§ 2031 and 2033 through the taxable estate under §§ 2051 and 2053 to the tax under § 2001(b), with the unified credit in § 2010(c) applied as a credit rather than an exclusion from the base, the § 2032 alternate valuation election, the § 2035 three-year rule, life insurance under § 2042, and the filing threshold and dates in §§ 6018(a), 6075(a) and 6166.
- Jointly-held property: Initial draft. Sets out the two regimes in IRC § 2040 — the consideration-furnished rule of § 2040(a) with the proportionate exception in Reg. § 20.2040-1(a)(2) and the fractional rule for inherited joint interests, and the flat one-half rule of § 2040(b) for a qualified joint interest — with the § 2056(d)(1)(B) exclusion for a non-citizen spouse, the § 2033 treatment of a tenancy in common, and the basis consequences under § 1014(b)(6) and (b)(9).
- Life insurance, IRAs and retirement plans: Initial draft. Contrasts life insurance — in the gross estate under IRC § 2042 but excluded from income under § 101(a) — with retirement accounts, which are in the gross estate and are also income in respect of a decedent under § 691(a) with no basis step-up under § 1014(c). Covers annuities under § 2039, the § 2035(a) three-year rule on transferred policies, the § 691(c) estate tax deduction, and the ten-year distribution rule and eligible designated beneficiary categories in § 401(a)(9)(E) and (H).
- Marital deduction and other marital issues (e.g., portability election): Initial draft. Sets out the unlimited marital deduction in IRC § 2056(a) and the terminable interest limitation in § 2056(b)(1) with its exceptions for a life estate with power of appointment under § 2056(b)(5) and qualified terminable interest property under § 2056(b)(7), the denial for a non-citizen spouse under § 2056(d) and the qualified domestic trust in § 2056A(a), the gift tax counterpart in § 2523, and the portability election in § 2010(c)(4) and (5) including the last-deceased-spouse rule and the reopened examination power.
- Annual exclusion: Initial draft. Sets out the IRC § 2503(b) annual exclusion — per donee, indexed from a statutory $10,000 and rounded down to a multiple of $1,000 — with the present interest requirement in Reg. § 25.2503-3, the § 2503(c) rule for gifts to minors, the § 2503(e) qualified transfer exclusion for tuition and medical payments made directly, the § 529(c)(2) five-year election, the § 2503(f) and (g) exclusions for pension waivers and artwork loans, and the § 2523(i) substitution for a non-citizen donee spouse.
- Effect on estate tax (e.g., Generation skipping transfer tax): Initial draft. Covers what lifetime gifts do to the estate tax — the IRC § 2001(b)(1)(B) add-back of adjusted taxable gifts and the § 2035(b) gross-up for gift tax paid within three years of death — and the third transfer tax: the § 2611 definitions, the § 2613(a) skip person test, generation assignment by family under § 2651(b) and by age only under § 2651(d), the § 2651(c) and (e) spouse and predeceased parent rules, the flat § 2641 rate and the § 2631 exemption.
- Gift-splitting: Initial draft. Sets out the IRC § 2513 election to treat a gift by one spouse as made half by each — the citizenship and marital status conditions, the general power of appointment exception, the all-or-nothing scope of the consent, the § 2513(b)(2) deadline and the § 2513(c) rule that makes a late consent irrevocable, and the § 2513(d) joint and several liability that comes with it — together with the § 6019 return requirement a split gift does not remove.
- Unified credit: Initial draft. Sets out the IRC § 2505 credit as one credit shared between the two taxes — its measurement by reference to § 2010(c), the reduction for credit allowed in preceding calendar periods, the § 2505(c) ceiling at the year's tax, and the denial to a nonresident who is not a citizen — together with the cumulative computation in § 2502(a) and the recomputation at death rates required by § 2001(g)(1).
- Adjustments, deductions, and credits for tax planning (e.g., timing of income and expenses): Initial draft. Sets out the timing rules a cash-method individual actually plans around — inclusion on receipt under IRC § 451(a) and constructive receipt under Reg. § 1.451-2(a), deduction on payment under Reg. § 1.461-1(a)(1), the § 461(g) prepaid interest rule and its points exception, contribution timing under Reg. § 1.170A-1(b), the § 63(e) itemize election that makes bunching possible, the § 219(f)(3) IRA look-back, the § 26(a) ceiling on nonrefundable credits, and the three blocking rules in §§ 1091, 267(a)(2) and 461(g).
- Advantages and disadvantages of MFJ/MFS/HOH filing statuses in various scenarios. (joint and several liability): Initial draft. Sets out the trade-off between the three statuses available to a married or formerly married client — the IRC § 6013(d)(3) joint and several liability that comes with a joint return, the one-way election in § 6013(b), the § 7703(b) considered-unmarried test that § 2(c) imports for head of household, and the provisions a separate return loses under §§ 21(e)(2), 25A(g)(6), 32(d)(1), 63(c)(6)(A), 86(c)(1)(C), 219(g)(4), 221(e)(2) and 469(i)(5).
- Character of transaction (e.g., use of capital gain rates versus ordinary income rates): Initial draft. Sets out how character is determined and where it can be influenced — the IRC § 64 and § 65 definitions, the § 1221(a) capital asset exclusions, the § 1222 holding period, the § 1231 hotchpot with its five-year lookback in § 1231(c), depreciation recapture under §§ 1245 and 1250, the rate buckets in § 1(h), and the rewritten § 1202 exclusion with its three-year tiering and $15,000,000 per-issuer limit for stock acquired after 4 July 2025.
- Conditions for filing a claim for refund (amended returns): Initial draft. Sets out the two limitations that govern a refund claim — the IRC § 6511(a) period for filing and the § 6511(b)(2) cap on what may be recovered — with the § 6513(a) early return rule and § 6513(b) deemed payment dates that make them run from the same day for most individuals, the special periods in § 6511(d)(1), (2) and (3), the § 6511(h) financial disability suspension, and the postponements under §§ 7508 and 7508A.
- Estimated tax and penalty avoidance (mid-year estimated tax planning): Initial draft. Covers estimated tax planning under IRC § 6654 from the avoidance side — the two safe harbours in § 6654(d)(1)(B) and (C), the ratable-withholding rule in § 6654(g), the annualised income installment method and its recapture in § 6654(d)(2), the January filing rule in § 6654(h), the farmer and fisherman substitutions in § 6654(i), the statutory exceptions in § 6654(e) and the § 6402(b) credit-forward election.
- Penalty of perjury: Initial draft. Sets out what the penalties-of-perjury declaration required by IRC § 6065 actually does — the signature rules in §§ 6061 and 6064, the § 7206(1) felony that requires no tax deficiency, the § 7207 misdemeanor, § 7201 evasion, the § 6663 civil fraud penalty, and the fines actually applicable under 18 U.S.C. § 3571 rather than the superseded amounts printed in the Code.
- ACA net premium tax credit: Initial draft. Sets out the IRC § 36B(b) premium assistance computation with the 2026 applicable percentage table from Rev. Proc. 2025-25 § 3.01, the return of the 400 percent ceiling on the expiry of § 36B(c)(1)(E), the § 36B(c)(2) coverage month and employer coverage tests with the 2026 required contribution percentage, the § 36B(f) reconciliation and the repeal of the repayment cap by Pub. L. 119-21 § 71305, and the eligibility and enrollment amendments made by §§ 71301 to 71304 with their staggered effective dates.
- Adoption credits: Initial draft. Sets out the IRC § 23(a) credit and the new § 23(a)(4) refundable portion added by Pub. L. 119-21 § 70402(a) for taxable years beginning after 31 December 2024, the § 23(a)(2) and § 23(e) timing rules, the § 23(a)(3) special needs deemed amount, the § 23(b) dollar and income limitations, the § 23(c) five-year carryforward as narrowed by § 70402(c), the § 23(d) definitions with the § 70403 extension to Indian tribal government determinations, and the relationship with the § 137 exclusion.
- Child and dependent care credit: Initial draft. Sets out the rewritten IRC § 21(a)(2) applicable percentage effective for taxable years beginning after 31 December 2025, the § 21(b) qualifying individual and employment-related expense definitions with Reg. § 1.21-1(c) on gainful employment, the § 21(c) expense caps and their reduction by the § 129 exclusion, the § 21(d) earned income limitation and deemed earned income, and the § 21(e) special rules including the joint return requirement and both identification requirements.
- Child tax credit and credit for other dependents: Initial draft. Sets out the IRC § 24(h) overlay that displaces the credit amount, threshold, refundable cap, earned income floor and identification rule printed in the body of the section, the § 24(h)(4) credit for other dependents, the § 24(d) refundability computation, the § 24(g) disallowance periods, and the changes made by Pub. L. 119-21 § 70104 effective for taxable years beginning after 31 December 2024.
- Earned income tax credit: Initial draft. Sets out the IRC § 32(a) computation and the 2026 table amounts from Rev. Proc. 2025-32 § 3.06, the § 32(c)(1) eligible individual tests including the childless age and abode rules, the § 32(c)(2) earned income definition with its exclusions and the § 112 combat pay election, the § 32(c)(3) qualifying child rules and why the support test does not apply, the § 32(d) joint return requirement and separated spouse exception, the § 32(i) disqualified income cliff, the § 32(k) disallowance periods, the § 32(m) social security number rule, and the preparer due diligence requirements in Reg. § 1.6695-2 with the § 6695(g) penalty.
- Education credits: Initial draft. Sets out the IRC § 25A(b) American Opportunity credit with its four-year, half-time and felony limits, the § 25A(c) Lifetime Learning credit, the § 25A(d) shared phase-out and why it is no longer indexed, the § 25A(f)(1) expense definition and its § 25A(f)(1)(D) course-materials extension for the American Opportunity credit only, Reg. § 1.25A-2(d)(2) on when books count, the § 25A(g) special rules, and the social security number requirement added by Pub. L. 119-21 § 70606 for taxable years beginning after 31 December 2025.
- Foreign tax credit: Initial draft. Sets out the IRC § 901(a) election and the § 275(a)(4) all-or-nothing consequence, the § 903 in-lieu-of rule, the § 904(a) ratio limitation with the § 904(b) modifications, the four § 904(d)(1) baskets, the § 904(c) one-back ten-forward carryover, the § 904(j) de minimis election, the § 901(k) dividend holding period, the § 6511(d)(3)(A) ten-year refund period, and the Pub. L. 119-21 §§ 70311 and 70313 amendments effective for taxable years beginning after 31 December 2025.
- Other credits (refundable and nonrefundable): Initial draft. Sets out the IRC § 25B saver's credit with the 2026 income limits from Notice 2025-67, the § 22 credit for the elderly and disabled and why it is almost never available, the § 31(b) credit for excess social security withholding and its two-employer condition, the expiry of the § 35 health coverage tax credit for coverage months beginning after 2021, and the termination of §§ 25C, 25D, 30D and 25E by Pub. L. 119-21 §§ 70502, 70505 and 70506.
- Allowed itemized deductions for Form 1040-NR: Initial draft. Sets out the IRC § 873(a) general rule confining deductions to those connected with effectively connected income, the three § 873(b) exceptions, the § 63(c)(6)(B) zero standard deduction, the § 170(c)(2)(A) domestic organisation requirement, and the § 871(b) and (c) framework including the treatment of F, J, M and Q visa holders.
- Charitable contributions: Initial draft. Sets out the new IRC § 170(b)(1)(I) 0.5 percent floor added by Pub. L. 119-21 § 70425(a)(1) and its absorption ordering, the § 170(p) deduction for non-itemizers, the § 170(b)(1)(G) cash limitation made permanent by § 70425(b)(1), the § 170(f)(17) recordkeeping rule reaching cash of any amount, the § 170(f)(8) contemporaneous written acknowledgment requirement, and the three § 170(f)(11) appraisal thresholds.
- Interest expense deductions for individuals: Initial draft. Sets out the IRC § 163(h)(1) disallowance of personal interest and the six categories that escape it, the § 163(h)(4)(A) two-residence rule, the § 163(h)(3)(F) acquisition indebtedness cap and grandfathering, the permanent disallowance of home equity interest and the restoration of mortgage insurance premiums by Pub. L. 119-21 § 70108, the new § 163(h)(4) passenger vehicle loan interest deduction, and the § 163(d) investment interest limitation.
- Medical, dental, vision and long-term care expenses: Initial draft. Sets out the IRC § 213(a) allowance and its 7.5 percent floor, the modified § 152 dependency test, the § 213(d)(1) definition of medical care with the § 213(b) prescription requirement, the § 213(d)(2) lodging rule and its per-night cap, the § 213(d)(9) cosmetic surgery exclusion, the § 213(d)(10) long-term care premium scale and the § 213(d)(11) related-provider rule, and the § 213(c) treatment of a decedent's expenses.
- Qualified Business Income Deduction: Initial draft. Sets out the two-limb IRC § 199A(a) computation, the § 199A(b)(2) wage and property limitation and its § 199A(b)(3) phase-in, the § 199A(d) specified service exclusion, the § 199A(f)(1) partner-level application, the 2026 threshold and phase-in figures from Rev. Proc. 2025-32 § 3.26, and the new § 199A(i) minimum deduction that Pub. L. 119-21 § 70105 put where the sunset used to be.
- Other itemized deductions: Initial draft. Sets out the IRC § 67(b) list of thirteen classes excluded from the definition of a miscellaneous itemized deduction, the § 67(h) disallowance of everything else as made permanent by Pub. L. 119-21 § 70110, the § 67(d) definition of impairment-related work expenses, the § 691(c) estate tax deduction, and the § 1341 claim of right computation.
- Nonbusiness casualty and theft losses in declared disaster areas: Initial draft. Sets out the IRC § 165(h)(5)(A) disaster requirement as amended by Pub. L. 119-21 § 70109 to add State declared disasters and remove the end date, the § 165(h)(5)(C) definition of a State declared disaster, the § 165(h)(1) per-event floor and § 165(h)(2) 10 percent floor, the § 165(h)(2)(B) reversal where gains exceed losses, the § 165(h)(4)(A) above-the-line portion, and the § 165(i)(1) prior year election.
- Various taxes: Initial draft. Sets out the four IRC § 164(a) categories and the flush-text rule for business taxes, the § 164(b)(5) sales tax election, the § 164(b)(6) limitation with its exclusion of foreign real property taxes and its carve-outs for foreign income taxes and business property taxes, the § 164(b)(7) schedule of applicable limitation amounts through 2029 and beyond, and the § 164(d) apportionment on a sale.
- Health savings accounts: Initial draft. Sets out the IRC § 223(c)(1) eligibility test, the § 223(b) monthly limitation with the married, Medicare and last-month rules, the § 223(d)(2) definition of qualified medical expenses, the § 223(f) distribution rules and the 20 percent additional tax with its three exceptions, and the § 223(c) amendments made by Pub. L. 119-21 §§ 71306 to 71308.
- Other adjustments to income: Initial draft. Sets out the IRC § 221 student loan interest deduction with its per-return cap and 2026 phase-out, the repeal of § 215 by Pub. L. 115-97 § 11051(a), the § 217(k) suspension of moving expenses as amended by Pub. L. 119-21 § 70113 to add intelligence community personnel from 2026, and the § 62(a)(2) educator and reservist adjustments with the § 62(d)(1) definition of an eligible educator.
- Retirement contribution limits and deductibility: Initial draft. Sets out the IRC § 219(b)(1) compensation test and § 219(f)(3) timing rule, the § 219(g) active participant phase-out, the § 402(g)(1) elective deferral limit and the § 414(v) catch-up amounts including the age 60 to 63 tier and the § 414(v)(7) Roth catch-up wage threshold, the § 415(c) annual addition limit, and the § 408(p) SIMPLE and § 408(k) SEP figures, all as adjusted for 2026 by Notice 2025-67.
- Self-employed health insurance: Initial draft. Sets out the IRC § 162(l)(1) deduction and its four covered classes, the § 162(l)(2)(A) earned income cap measured against the business establishing the plan, the § 162(l)(2)(B) month-by-month bar for eligibility in a subsidised employer plan, the § 162(l)(2)(C) and § 213(d)(10) long-term care scale, and the § 162(l)(3), (4) and (5) rules on double counting, self-employment tax and S corporation shareholders.
- Self-employment tax deduction and the two halvings: Initial draft. Sets out the IRC § 1401 rates including the additional hospital insurance tax and its unindexed thresholds, the § 1402(a) definition of net earnings with its rental, portfolio, capital gain and limited partner exclusions, the § 1402(b) ceiling and the $400 floor, and the two distinct halvings — the § 1402(a)(12) base reduction and the § 164(f) deduction — that are routinely confused.
- Forms 1099-MISC, 1099-NEC and 1099-K — reporting, irregularities and corrections: Initial draft. Records the IRC § 6041(a) threshold increase with indexing from 2027, the IRC § 6041A(a)(2) amendment tying nonemployee compensation reporting to that figure, the retroactive restoration of the IRC § 6050W(e) thresholds, and the new tip and occupation accounting required on payer statements.
- Constructive dividends: Initial draft. Sets out the IRC § 301 and § 316 route by which an undeclared benefit becomes a dividend, the Reg. § 1.162-7(b)(1) reasonableness test, and the IRC § 7872(c)(1)(C) treatment of corporation-shareholder loans.
- Constructive receipt of income: Initial draft. Sets out the Reg. § 1.451-2(a) test and its four stated non-limitations for bank deposits, and the IRC § 409A consequences where a deferral arrangement fails.
- Dividends and other distributions from mutual funds, corporations, and other entities: Initial draft. Sets out the IRC § 316 earnings and profits test, the IRC § 301(c) three-tier ordering, the IRC § 1(h)(11) qualified dividend holding period as it borrows from IRC § 246(c), and the treatment of regulated investment company and REIT distributions.
- Interest income: Initial draft. Sets out the IRC § 103 exclusion and its three exceptions, the IRC § 135 education savings bond exclusion and its separate-return bar, the IRC § 454 election on discount obligations, and the IRC § 7872 below-market loan rules.
- Gambling income and allowable deductions: Initial draft. Records the rewrite of IRC § 165(d) by Pub. L. 119-21 § 70114 capping the wagering loss deduction at 90 percent of losses from 2026, and the replacement of the fixed Form W-2G reporting thresholds with the single indexed IRC § 6041(a) figure.
- Other income: Initial draft. Sets out the IRC § 117 scholarship exclusion and its service limitation, the IRC § 74 prize rules, the IRC § 104(a)(2) physical injury requirement, and the repeal of IRC §§ 71 and 215 for post-2018 instruments.
- Passive income and loss: Initial draft. Sets out the IRC § 469(c) definition with its rental rule and real estate professional exception, the seven Reg. § 1.469-5T(a) material participation tests, the IRC § 469(i) offset and its unindexed phase-out, and the IRC § 469(g) release on disposition.
- Pass-through income items: Initial draft. Records the removal of the IRC § 199A sunset and the new minimum deduction in § 199A(i), the widened phase-in range under § 199A(b)(3)(B) and (d)(3), and the new § 199A(c)(4)(D) exclusion for amounts deducted as qualified tips.
- Personal property rental: Initial draft. Records the permanent suspension of miscellaneous itemized deductions and its redesignation from IRC § 67(g) to § 67(h) by Pub. L. 119-21 § 70110, and its effect on the deductions IRC § 183(b)(2) would otherwise allow.
- Royalties and related expenses: Initial draft. Sets out the reporting split between Schedule E and Schedule C for royalties, the IRC § 611 to § 613A depletion rules with their two ceilings, and the IRC § 1235 capital gain treatment for a transfer of all substantial rights to a patent.
- State and local income tax refunds and other itemized deduction recoveries: Initial draft. Records the removal of the IRC § 164(b)(6) sunset and the new applicable limitation amount in IRC § 164(b)(7), with its income phasedown and its scheduled reversion after 2029, and the effect of both on the IRC § 111(a) recovery computation.
- Tax treatment of a U.S. citizen or resident with foreign income: Initial draft. Sets out the IRC § 911(d)(1) qualification tests, the IRC § 904(a) limitation with its carryback and carryover and the IRC § 904(j) de minimis election, and the IRC § 6114 disclosure requirement with its IRC § 6712 penalty.
- Taxability of wages, salaries and other earnings: Initial draft. Sets out the new IRC § 224 and § 225 deductions for qualified tips and qualified overtime, both first available in 2026 and both terminating after 2028, and the statutory definition of a tip they introduce.
- Tax treatment of forgiveness of debt: Initial draft. Records the expiry of the IRC § 108(a)(1)(E) principal residence exclusion for discharges after 2025 and the rewrite of IRC § 108(f)(5) by Pub. L. 119-21 § 70119, which withdrew the broad 2021-2025 student loan discharge exclusion for discharges after 31 December 2025.
- Basis of assets for individuals: Initial draft. Sets out the IRC § 1012 cost rule and the § 1016(a)(2) allowed-or-allowable adjustment, the § 1015(a) dual basis on a gift of depreciated property and the § 1015(d)(6) gift tax fraction, the four § 1014(a) measures for property acquired from a decedent with the § 1014(f) consistency cap, § 1014(b)(6) community property and the § 1014(e) one-year deathbed rule, the § 1041 carryover on a spousal transfer, and the § 1223 tacking rules.
- Basis of stock after stock splits and stock dividends: Initial draft. Sets out the IRC § 305(a) exclusion and its § 305(b) exceptions, the § 307(a) allocation by fair market value on the distribution date under Treas. Reg. § 1.307-1(a), the § 307(b) 15 percent rule for rights, the § 1223(4) tacked holding period, and the Treas. Reg. § 1.1012-1(c) default to first-in first-out with its settlement-date identification deadline.
- Capital gains and losses: Initial draft. Sets out the IRC § 1221 definition by exclusion and the § 1221(b)(3) election for musical works, the § 1222 holding periods, the § 1211(b) loss limit and § 1212(b) carryover, the § 1(h) rate structure as it must be read through § 1(j)(5), the collectibles and qualified dividend rules, the § 1091 wash sale rule and § 1256 mark to market, and the treatment of digital assets as property under Notice 2014-21.
- Installment sales: Initial draft. Sets out the IRC § 453(a) default and § 453(d) election out, the § 453(c) gross profit ratio, the § 453(b)(2) and § 453(l) exclusions for dealers and inventory, the § 453(i) rule pulling recapture income into the year of disposition, the § 453(e) related-party second disposition rule with its two-year cutoff, § 453(g) and § 1239 on sales to related persons of depreciable property, and the § 453A interest and pledging rules and § 453B disposition of the obligation.
- Investor versus trader: Initial draft. Sets out the absence of any statutory definition of a trader, the IRC § 67(h) permanent disallowance of miscellaneous itemized deductions as amended by Pub. L. 119-21 § 70110, the § 163(d) investment interest limitation that survives it, the § 475(f) mark to market election with its ordinary character, its § 475(f)(1)(B) same-day identification requirement and its § 475(f)(3) mechanics, and the § 1236 dealer rules.
- Like-kind exchange of real property: Initial draft. Sets out IRC § 1031(a)(1) as confined to real property by Pub. L. 115-97 § 13303(a), the § 1031(a)(3) identification and exchange periods with the return due date as an alternative cutoff, the Treas. Reg. § 1.1031(k)-1(c)(4) identification limits, the § 1031(b), (c) treatment of boot and the § 1031(d) basis rule including assumed liabilities, and the § 1031(f) related person and § 1031(h) foreign property rules.
- Non-business bad debts: Initial draft. Sets out the IRC § 166(d)(1) recharacterisation of a nonbusiness bad debt as a short-term capital loss and the § 166(d)(2) definition, the Treas. Reg. § 1.166-1(c) bona fide debt requirement, the § 1.166-5(a)(2) all-or-nothing worthlessness rule, the § 166(b) basis measure, the § 165(g) treatment of worthless securities, and the seven-year refund period in § 6511(d)(1).
- Options — statutory, non-statutory, and traded: Initial draft. Sets out the IRC § 421(a) effect of a qualifying transfer and the § 421(b) treatment of a disqualifying disposition, the § 422 conditions for an incentive stock option with its $100,000 annual limit, the § 56(b)(3) alternative minimum tax adjustment that arises at exercise, the § 423 employee stock purchase plan requirements and the § 423(c) discount compensation rule, the § 1234 character rules for purchasers and grantors, and the § 6039 reporting.
- Publicly traded partnerships: Initial draft. Sets out the IRC § 7704(a) corporate default and the § 7704(c) qualifying income exception, the § 469(k)(1) separate application of the passive loss rules and the § 469(k)(3) rule deferring release of suspended losses until the whole interest goes, the § 741 and § 751(a) split of gain on sale, the § 705 outside basis mechanics, and the § 1446(f) withholding on a transferee.
- Sale of a personal residence: Initial draft. Sets out the IRC § 121(a) ownership and use tests and the § 121(b) limits including the joint, surviving spouse and frequency rules, the § 121(c) reduced exclusion with the Treas. Reg. § 1.121-3(e)(2) safe harbours, the § 121(b)(5) nonqualified use allocation and the § 121(b)(5)(D) ordering against § 121(d)(6) depreciation, and the § 121(d) rules for divorce, extended duty and § 1031 property.
- Sale or disposition of property and depreciation recapture: Initial draft. Sets out the IRC § 1001 computation and the Treas. Reg. § 1.1001-2 treatment of discharged liabilities, the IRC § 1245 recapture formula and its recomputed basis, the IRC § 1250 formula and why § 168(b)(3) leaves it at nothing for modern real property, the 25 percent ceiling on unrecaptured section 1250 gain under § 1(h)(1)(E), the § 1231 netting and five-year lookback, and the § 6050J reporting on Form 1099-A.
- Basis in a traditional IRA: Initial draft. Sets out the IRC § 408(d)(2) aggregation rule that produces pro-rata recovery of basis, the IRC § 408(o) definition of a designated nondeductible contribution, the reporting duty in § 408(o)(4) and its § 6693(b) penalties.
- Traditional and Roth IRAs compared, and their distributions: Initial draft. Sets out the IRC § 408A(d)(2) two-part qualified distribution test with its 5-taxable-year period, the IRC § 408A(d)(4)(B) ordering rules, the IRC § 408A(c)(3) contribution phase-out and the IRC § 408A(c)(4) exemption from lifetime required distributions.
- Distributions from qualified and nonqualified plans: Initial draft. Sets out the IRC § 402(a) charging rule, the IRC § 402(c)(4) definition of an eligible rollover distribution with its three exclusions, the IRC § 3405(c) mandatory withholding and its direct-transfer exception, and the IRC § 72(d) simplified method.
- Excess contributions and their tax treatment: Initial draft. Sets out the recurring IRC § 4973(a) excise tax and its account-value ceiling, the IRC § 4973(b)(2) absorption mechanism, the IRC § 408(d)(4) timely correction route and the separate IRC § 402(g)(2) deadlines for excess elective deferrals.
- Foreign pensions and retirement income: Initial draft. Sets out the IRC § 402(b) treatment of a trust that is not exempt under § 501(a) — employer contributions taxed under § 83 as they vest and the § 402(b)(4)(A) rule for a highly compensated employee — the § 911(b)(1)(B) exclusion of pensions and § 402(b) amounts from foreign earned income, the § 894 and § 7852(d) treaty rules, and the three separate reporting regimes under § 6038D, § 6048 and 31 CFR 1010.350, with the Rev. Proc. 2020-17 relief that reaches only the second.
- Loans from qualified plans: Initial draft. Sets out the IRC § 72(p)(1) rule that a plan loan is a distribution, the § 72(p)(2) exception and its four conditions, the Treas. Reg. § 1.72(p)-1 distinction between a deemed distribution and a plan loan offset, the § 402(c)(3)(C) extended rollover window for a qualified offset, and the § 4975(f)(6)(B)(iii) loan exception that leaves owner-employees able to borrow while IRA owners cannot.
- Penalties and exceptions on premature distributions: Initial draft. Sets out the IRC § 72(t)(1) charge on the includible portion only, the nine general exceptions in § 72(t)(2)(A), the two withheld from IRAs by § 72(t)(3)(A), the three drafted for IRAs alone, the newer capped exceptions, and the § 72(t)(4) recapture.
- IRA conversions and recharacterization: Initial draft. Sets out the IRC § 408A(d)(3) conversion rules, the § 408A(d)(3)(F) five-year recapture, the § 408A(d)(6) recharacterization election and its § 408A(d)(6)(B)(iii) exclusion of conversions, and records that Treas. Reg. § 1.408A-4 has never been conformed to three separate statutory changes.
- Inherited retirement accounts: Initial draft. Sets out the three-question structure of IRC § 401(a)(9)(B) as rewritten by § 401(a)(9)(H), the § 401(a)(9)(E)(ii) categories of eligible designated beneficiary tested at the date of death, the Treas. Reg. § 1.401(a)(9)-4(c) 30 September determination date, the rule that annual distributions and the ten-year outer limit both apply where the owner died on or after the required beginning date, the § 408(d)(3)(C) bar on rolling over an inherited IRA, and the § 691 and § 1014(c) consequences.
- Prohibited transactions and their tax effects: Initial draft. Sets out the six IRC § 4975(c)(1) categories, the IRC § 4975(e)(2) definition of a disqualified person, the two-tier excise tax, and the very different IRC § 408(e)(2) consequence for an IRA together with the narrower IRC § 408(e)(4) pledge rule.
- Required minimum distributions and excess accumulations: Initial draft. Sets out the IRC § 401(a)(9)(C) required beginning date and its applicable-age table, the Treas. Reg. § 1.401(a)(9)-5 computation and Uniform Lifetime denominators, the Treas. Reg. § 1.408-8(e) aggregation rules, and the IRC § 4974 excise tax with its § 4974(e) reduced rate and § 4974(d) reasonable-error waiver.
- Taxability of net unrealized appreciation (NUA): Initial draft. Sets out the IRC § 402(e)(4)(B) exclusion of net unrealized appreciation on a lump sum distribution of employer securities, the § 402(e)(4)(D) definition of a lump sum distribution and its aggregation rule, the Treas. Reg. § 1.402(a)-1(b) computation and basis consequence, and the long-term character on a later sale. Records that the governing regulation still measures long term as more than six months.
- Taxability of Social Security and Railroad Retirement benefits: Initial draft. Sets out the two-tier IRC § 86(a) computation against the unindexed § 86(c) base and adjusted base amounts, the § 86(b)(2) modified adjusted gross income that adds back tax-exempt interest, the § 86(d) definition reaching tier 1 but not tier 2 railroad retirement, the § 86(e) lump-sum election, and the flat 85 percent rule in § 871(a)(3) for nonresident aliens. Records that the IRC § 151(d)(5)(C) senior deduction added by Pub. L. 119-21 § 70103(a) does not enter this computation.
- ACA requirements: Initial draft. Records that the 400 percent ceiling on premium tax credit eligibility and the temporary premium percentages both lapsed for taxable years beginning after 2025, and that the excess advance payment repayment limitation was removed.
- Additional required returns filed and taxes paid: Initial draft. Sets out the IRC § 6019 gift return trigger, the IRC § 3510 treatment of domestic service employment taxes as estimated tax, and the penalty structures under IRC §§ 6038, 6677 and 6721.
- Filing requirements and due date: Initial draft against Rev. Proc. 2025-32 and IRC § 151(d)(5) as amended by Pub. L. 119-21. Records that the zero personal exemption is now permanent and that a new senior deduction applies through 2028.
- Foreign account and asset reporting: Initial draft. Records that 31 C.F.R. § 1010.306(c) still states a 30 June FBAR due date superseded in 2015.
- Minor children's unearned income — the kiddie tax: Initial draft against IRC § 1(g) and Rev. Proc. 2025-32 § 3.02.
- Previous IRS correspondence with taxpayer: Initial draft, from IRC § 6213, IRC § 6103(c), Circular 230 §§ 10.21 and 10.22, and IRM 21.2.3 as revised for IRM Procedural Updates through 23 May 2025.
- Qualifications for dependency: Initial draft against IRC § 152 and Rev. Proc. 2025-32 § 3.23.
- Residency status and citizenship: Initial draft.
- Sources of all worldwide taxable and nontaxable income: Initial draft. Records the retroactive restoration of the IRC § 6050W(e) reporting threshold by Pub. L. 119-21 § 70432, the new IRC § 6051(a)(18) and (19) statement items, and the expiry of the IRC § 108(a)(1)(E) principal residence exclusion for discharges after 2025.
- Sources of applicable credits: Initial draft. Records the IRC § 21(a)(2) rewrite creating a two-tier applicable percentage from 2026, the new IRC § 25A(g)(1) social security number requirement for education credits, the partly refundable adoption credit under IRC § 23(a)(4), and the termination of the IRC § 25C, § 25D and § 30D credits.
- Sources of applicable deductions: Initial draft. Records the 2026 arrival of the IRC § 68 itemized-deduction haircut, the IRC § 170(b)(1)(I) charitable floor, the IRC § 170(p) deduction for non-itemizers, and the permanent IRC § 67(h) suspension with its new educator carve-out.
- Sources of applicable exclusions and adjustments to gross income: Initial draft. Records the IRC § 129(a)(2)(A) increase to the dependent care exclusion, the permanent IRC § 127(c)(1)(B) student loan payment exclusion with indexing from 2027, and the permanent IRC § 217(k) moving expense suspension with its new intelligence community exception.
- Sources of tax payments and refundable credits: Initial draft. Sets out the IRC § 6654(d) safe harbours and the IRC § 6654(g) rule deeming withholding paid ratably across the installment dates, the IRC § 32 figures for 2026, and the IRC § 6402(m) refund hold.
- Special filing requirements: Initial draft.
- Taxpayer biographical information: Initial draft. Records that Pub. L. 119-21 § 70104(b) rewrote IRC § 24(h)(7) to require the taxpayer's own social security number in addition to the child's.
- Taxpayer filing status: Initial draft.
- Use of prior years' returns for comparison, accuracy and carryovers: Initial draft.
- Miscalculations and recognition of duplicate entries: Initial draft.
- Reliance on software: Initial draft.
- Additional Medicare tax: Initial draft. Sets out the IRC § 3101(b)(2) and § 1401(b)(2) 0.9 percent tax with its unindexed thresholds, the mismatch between the § 3102(f)(1) withholding trigger and the liability threshold, the absence of any employer match, the ordering rule between wages and self-employment income, and the relationship with the § 1411 net investment income tax.
- Alternative minimum tax and credit for prior year: Initial draft. Sets out the IRC § 55(a) and (b)(1) computation with the 2026 rate breakpoint, the § 55(d)(4) exemption as made permanent and modified by Pub. L. 119-21 § 70107 — threshold reset to $1,000,000 and $500,000, re-indexed from 2025, phase-out rate doubled to 50 percent — the § 56(b) individual adjustments and § 57(a) preferences, and the § 53 minimum tax credit with its deferral-item restriction.
- Excess Social Security withholding: Initial draft. Sets out the IRC § 6413(c)(1) special refund and its two-employer condition, the § 31(b)(1) treatment of the amount as tax withheld at source, the § 31(b)(2) year rule, the absence of any equivalent for the hospital insurance tax under § 3101(b), and the railroad retirement coordination. 2026 wage base from IRS Topic 751.
- Household employees: Initial draft. Sets out the common law employee test for household workers, the IRC § 3121(a)(7)(B) and (x) cash wage threshold with the 2026 figure from IRS Topic 756, the § 3121(b)(3) family exclusions, the FUTA quarterly test and wage base, the absence of any income tax withholding obligation, and the § 3510 reporting of all three on Schedule H with the individual return.
- Income in respect of decedent: Initial draft. Sets out the IRC § 691(a)(1) allocation of the item among estate, successor and legatee, the § 691(a)(3) character rule, the § 691(a)(2) acceleration on transfer, the § 1014(c) denial of a basis step-up, the § 691(b) deductions in respect of a decedent, and the § 691(c) estate tax deduction with its § 67(b)(7) protection from the miscellaneous itemized deduction disallowance.
- Net investment income tax: Initial draft. Sets out the IRC § 1411(a) lesser-of computation for individuals and for estates and trusts, the § 1411(b) unindexed thresholds, the § 1411(c) definition of net investment income with its passive activity and trading business limbs, the § 1411(c)(5) and (6) exclusions for qualified plan distributions and self-employment income, the § 1411(d) modified adjusted gross income definition, and the § 1411(e) non-application to nonresident aliens.
- Self-employment tax: who owes it and the optional methods: Initial draft. Covers the reporting side of the self-employment tax: who is within IRC § 1402(c), the § 1402(a) exclusions, the qualified joint venture election under § 761(f), the farm and non-farm optional methods with the § 1402(l) limits, the § 1402(e) and (g) exemptions, and why the tax is a chapter 2 liability that most nonrefundable credits cannot reach. The rate structure and the two halvings are on 1.2.4.a.
- Tax provisions for members of the clergy: Initial draft. Sets out the IRC § 107 housing exclusion and the Reg. § 1.107-1(b) advance designation requirement, the § 1402(a)(8) inclusion of the same amount in net earnings from self-employment with its retirement carve-out, the two exemptions in § 1402(c) and (e), the exclusion of ministerial service from FICA and from income tax withholding under §§ 3121(b)(8)(A) and 3401(a)(9), and the § 265(a)(6)(B) preservation of mortgage interest and property tax deductions.
- Other taxes: Initial draft. Sets out the IRC § 36(f) first-time homebuyer credit recapture with its acceleration, gain cap and three exceptions, the § 965(h) instalment election, the § 4973 and § 4974 excise taxes, the § 72(t) additional tax, and the state of § 5000A after the shared responsibility payment was zeroed.
- Uncollected Social Security and Medicare tax: Initial draft. Sets out the IRC § 6053(a) tip reporting obligation, the § 3102(c)(1) limit on what an employer can collect, the § 6053(b) statement of the excess, the § 3121(a)(12)(B) monthly threshold and the treatment of unreported tips under § 3121(q), the § 6652(b) penalty, and uncollected tax on group-term life insurance for a former employee under § 79.
- Underpayment penalties and interest: Initial draft. Sets out the IRC § 6654 estimated tax addition — its four installments, the required annual payment and the 110 percent rule, the three exceptions and the annualised income method — the § 6651 failure to file and failure to pay additions with their interaction and the indexed 60-day minimum, and interest under §§ 6601 and 6621 with the 2026 published quarterly rates.
- Data security: Initial draft against Publication 4557.
- Tax provisions for members of the military: Initial draft. Sets out the IRC § 112 combat zone exclusion with its month rule and the maximum enlisted amount cap, the § 134 qualified military benefit exclusion and its 1986 freeze, the § 7508 suspension of deadlines, the § 692 forgiveness on death, the § 217(g) survival of the moving expense deduction with the intelligence community extension added by Pub. L. 119-21 § 70113(b), the § 121(d)(9) suspension of the five-year period, and the § 62(a)(2)(E) reservist travel deduction.
- Length of time to retain returns and records: Initial draft.
- Advertising standards: Initial draft against Publication 3112 (Rev. 11-2025), closing an open verification item on the e-file logo rules.
- Application process to be an e-file provider: Initial draft against Publication 3112 (Rev. 11-2025).
- Compliance requirements to continue in the program: Initial draft against Publication 3112 (Rev. 11-2025).
- Definition and responsibilities of an ERO: Initial draft against Publications 1345 (Rev. 12-2025) and 3112 (Rev. 11-2025).
- E-file authorization and supporting documentation: Initial draft against Publication 1345 (Rev. 12-2025).
- EFIN revocation appeal process: Initial draft against Publication 3112 (Rev. 11-2025).
- Rejected returns and resolution: Initial draft against Publications 1345 (Rev. 12-2025) and 4163.
- Levels of infractions: Initial draft against Publication 3112 (Rev. 11-2025).
- Business entity supporting documents: Initial draft.
- Legal documents: Initial draft.
- Financial documents and expense records: Initial draft.
- Other substantive and contemporaneous documentation: Initial draft.
- Prior and subsequent tax returns: Initial draft.
- Discharge of the tax liability in bankruptcy: Initial draft.
- General financial health: Initial draft. Notes that the qualified principal residence indebtedness exclusion in IRC § 108(a)(1)(E) reached discharges before 1 January 2026 and has not been extended.
- IRS Collection Financial Standards: Initial draft against the standards effective 29 June 2026 and the 29 June 2026 revision of IRM 5.15.1.
- Taxpayer's ability to pay the tax: Initial draft against IRM 5.15.1 as revised 29 June 2026.
- Third-party research: Initial draft against IRM 5.15.1.6 as revised 29 June 2026.
- Enrolled agent appearance at an Appeals conference: Initial draft.
- Issuance of the 90-day letter: Initial draft.
- Request for Appeals consideration: Initial draft against Publication 5 (Rev. 4-2021).
- Right to appeal: Initial draft.
- Settlement function of the Appeals process: Initial draft.
- Education planning: Initial draft. Sets out the IRC § 529 expansion by Pub. L. 119-21 — the doubled elementary and secondary limit, the widened list of qualifying school expenses effective on enactment, credentialing expenses, and the permanent ABLE rollover — with the § 530 Coverdell limits, the § 127 exclusion made permanent and indexed, and the § 221 deduction with its 2026 phase-out.
- Estate planning: Initial draft. Sets out the IRC § 2010(c)(3) basic exclusion amount as raised by Pub. L. 119-21 § 70106 and re-indexed from 2026, the matching § 2631(c) generation-skipping exemption, the § 2503(b) annual exclusion, the § 2010(c)(4) portability election, the § 1014 versus § 1015 basis contrast, and the § 101(a) and § 2042 treatment of life insurance.
- Injured spouse: Initial draft. Sets out injured spouse allocation as a claim on a refund rather than relief from liability, the four IRC § 6402(c)–(f) offsets that trigger it, the distinction from the § 6402(a) internal credit, the Bureau of the Fiscal Service's role in notification, and the community property complication.
- Items that will affect future and past returns: Initial draft. Sets out the seven carryovers an individual return may carry — IRC § 172 net operating losses, § 1212(b) capital losses, § 170(d) charitable contributions, § 469(b) passive losses, § 199A(c)(2) negative qualified business income, § 53 minimum tax credit and the general business credit — with their differing periods, limits and character rules.
- Innocent spouse: Initial draft. Sets out the IRC § 6013(d)(3) joint and several liability the section relieves, the three routes in § 6015(b), (c) and (f) with their separate conditions and deadlines, the § 6015(e) Tax Court jurisdiction, and the § 6015(g)(3) bar on any refund from a § 6015(c) election.
- Marriage and divorce: Initial draft. Sets out the IRC § 7703 marital status test, the repeal of the alimony regime by Pub. L. 115-97 § 11051 and the grandfathering of pre-2019 instruments, the § 1041 non-recognition rule with its carryover basis and incident-to-divorce test, the § 86(c)(1)(C) zero base amount, and the § 152(e) allocation of a child between separated parents.
- Property sales: Initial draft. Sets out the four long-term rates in IRC § 1(h) with the 2026 breakpoints from Rev. Proc. 2025-32 § 3.03, the § 1(h)(5) collectibles definition and its look-through for partnership interests, unrecaptured § 1250 gain, the interaction with the § 1411 net investment income tax, and the real versus personal property distinction.
- Reporting obligations for individuals: Initial draft. Sets out the IRC § 6041 threshold raised to $2,000 and newly indexed by Pub. L. 119-21 § 70433, the restoration of the conjunctive § 6050W(e) test by § 70432 with its retroactive effective date, the § 6050I cash reporting rule, barter exchange reporting under § 6045(c)(3) and the independence of § 61 taxability from any information return, and the § 6721 penalty amounts for returns required to be filed in 2027.
- Retirement planning: Initial draft. Sets out the IRC § 401(a)(9)(C) required beginning date with the two applicable ages and the exceptions to the retirement limb, the § 408(d)(8) qualified charitable distribution with its 2026 limits and the deduction offset, the § 219(g) deduction phase-outs from Notice 2025-67, and the spousal-only rollover rule for inherited accounts.
- E-file mandate and exceptions (Form 8948): Initial publication from IRC § 6011(e)(3), Reg. § 301.6011-7, Notice 2011-26 and Rev. Proc. 2011-25, each opened at source.
- Conflict of interest: Initial publication from Circular 230 § 10.29 as amended by T.D. 9359.
- Continuing education requirements: Initial publication from Circular 230 § 10.6(e)–(k) as issued by T.D. 9527.
- Due diligence requirements: Initial publication from Circular 230 §§ 10.22, 10.34, 10.37 and 10.52.
- Enrollment cycle and renewal: Initial publication from Circular 230 § 10.6(a)–(d), (j)–(m) as issued by T.D. 9527.
- Information to be furnished to the IRS: Initial publication from Circular 230 §§ 10.20 and 10.51.
- Omission or error on return, document, or affidavit: Initial publication from Circular 230 § 10.21.
- Practitioner supervisory responsibilities (Circular 230): Initial publication from Circular 230 § 10.36 as issued by T.D. 9668.
- Fee rules (e.g., contingent, unconscionable): Initial publication from Circular 230 §§ 10.27 and 10.30.
- PTIN requirements: Initial publication from IRC § 6109(a)(4), Reg. § 1.6109-2, Circular 230 § 10.8 and the IRS PTIN guidance opened 18 August 2026.
- Rules for employing or accepting assistance from former IRS employees or disbarred/suspended persons: Initial publication from Circular 230 §§ 10.24 and 10.25 as amended by T.D. 9527.
- Rules for prompt disposition of matters before the IRS: Initial publication from Circular 230 § 10.23.
- Rules for refund check negotiation: Initial publication from Circular 230 § 10.31 as amended by T.D. 9668, IRC § 6695(f) and Reg. § 1.6695-1(f).
- Rules for restrictions on advertising, solicitation and fee information: Initial publication from Circular 230 § 10.30 as amended by T.D. 9527.
- Rules for returning a client's records and documents: Initial publication from Circular 230 § 10.28.
- Standards for written advice, covered opinions, tax return positions and preparing returns: Initial publication from Circular 230 §§ 10.34, 10.35 and 10.37 as rewritten by T.D. 9668.
- Tax shelters: Initial publication from IRC §§ 6662(d)(2)(C), 6111, 6112, 6707 and 6707A.
- Assessment and appeal procedures for preparer penalties: Initial publication from IRC §§ 6694(c), 6694(d), 6696, 6751, Reg. § 1.6694-4 and IRM 20.1.6 as revised 10 August 2026.
- Employees engaged or employed during a return period (e.g. IRC Section 6060): Initial publication from IRC §§ 6060, 6695(e) and Reg. § 1.6060-1.
- Furnishing a copy of a return to a taxpayer: Initial publication from IRC §§ 6107(a), 6695(a) and Reg. § 1.6107-1(a).
- Keeping copies or lists of returns prepared: Initial publication from IRC §§ 6107(b), 6695(d), 6060(c) and Reg. § 1.6107-1(b).
- Preparer due diligence and penalties (e.g., refundable credits, head of household status): Initial publication from IRC § 6695(g), (h) and Reg. § 1.6695-2.
- Signing returns and furnishing identifying numbers: Initial publication from IRC §§ 6109(a)(4), 6695(b), 6695(c) and Regs. §§ 1.6695-1(b), 1.6109-2.
- Types of penalties a preparer faces: Initial publication from IRC §§ 6694, 6695, 6662, 6701, 6702, 6713, 7216 and Rev. Proc. 2025-32.
- What constitutes practice before the IRS: Initial publication, written from 31 CFR Part 10 (Circular 230) as it currently reads.
- Who may practice before the IRS, and how far their rights extend: Initial publication from 31 CFR Part 10 and the IRS's current statement of representation rights.
- Fraudulent transactions (e.g., badges of fraud): Initial publication from IRC §§ 6663, 6651(f), 6501(c)(1), 7201, 7206 and IRM 25.1.1, 25.1.2.
- Frivolous submissions (returns and documents): Initial publication from IRC §§ 6702 and 6673, Notice 2010-33 and Circular 230 §§ 10.34, 10.51.
- Incompetence and disreputable conduct that may result in a disciplinary proceeding: Initial publication from 31 CFR §§ 10.50, 10.51, 10.52 and 10.53 (Circular 230) as they currently read.
- Sanctions imposed by the Office of Professional Responsibility: Initial publication from 31 CFR §§ 10.50, 10.60, 10.61, 10.62, 10.76, 10.77, 10.78, 10.79, 10.81 and 10.82 (Circular 230).
- Competence, expertise and time to handle issue: Initial publication from Circular 230 §§ 10.35, 10.22, 10.23 and 10.36, each opened at source.
- Identification of tax issue(s) with supporting details: Initial publication from Circular 230 §§ 10.37, 10.34 and 10.22 and Reg. § 1.6662-4, each opened at source.
- Conflict of interest in regards to representation: Initial publication from Circular 230 §§ 10.29, 10.22 and 10.35, each opened at source.
- Potential for criminal aspects: Initial publication from IRC §§ 7602(d)–(e), 7525, 7201 and 7206 and Circular 230 § 10.21, each opened at source.
- Transcripts from IRS (e.g., access to and use of e-services): Initial publication from the IRS transcript types page (last reviewed 10 March 2026) and Transcript Delivery System page (last reviewed 10 June 2026).
- Authoritative versus non-authoritative source material: Initial publication from Reg. §§ 1.6662-4 and 1.6662-3 and IRC §§ 6110 and 6662, each opened at source.
- Case law: Initial publication from IRM 4.10.7, IRC § 7463, and Reg. §§ 1.6662-4 and 601.601, each opened at source.
- Internal Revenue Manual: Initial publication from IRM 1.11.1 (effective 29 August 2025), IRC § 7811, Reg. § 1.6662-4 and 5 U.S.C. § 552, each opened at source.
- IRS forms, instructions and publications: Initial publication from the IRS reliance page (last reviewed 5 December 2025), IRM 4.10.7, Reg. § 1.6664-4 and IRC § 6404.
- Internal Revenue Code and income tax regulations: Initial publication from IRC § 7805, Reg. §§ 601.601 and 1.6662-4, and 5 U.S.C. § 553, each opened at source.
- Private letter ruling: Initial publication from Reg. §§ 601.201 and 1.6662-4 and IRC §§ 6110 and 7528, each opened at source.
- Revenue rulings and revenue procedures: Initial publication from Reg. §§ 601.601 and 1.6662-4 and IRC § 7805, each opened at source.
- Tax treaties: Initial publication from IRC §§ 894, 7852(d), 6114 and 6712 and the IRS income tax treaties page (last reviewed 3 January 2026).
- Deadlines and timeliness requirements: Initial publication from IRC §§ 7502, 7503 and 7508A and the IRS private delivery services page, each opened at source.
- Freedom of Information Act (FOIA) requests: Initial publication from 5 U.S.C. § 552, Reg. § 601.702, the IRS FOIA guidelines page last reviewed 28 June 2026, and IRC § 6103.
- Judicial levels of representation beyond the scope of EA representation: Initial publication from Circular 230 § 10.2(a)(4), 31 U.S.C. § 330, Tax Court Rules 24 and 200 read in full, IRC § 7463, and IRS Pub. 5 (Rev. 4-2021).
- Identity Theft: Initial publication from the IRS identity protection PIN page (last reviewed 4 August 2026) and identity theft guide (last reviewed 4 June 2026), and IRC § 6103.
- Post-filing correspondence (e.g., math error notices, under-reporting notices): Initial publication from IRC §§ 6212 and 6213(a), (b) and (g)(2).
- Statute of limitations: assessment, refund, and collection: Every citation re-opened at source. Corrected the authority for the offer-in-compromise and installment-agreement suspension (IRC § 6331(k)(3)(B) and § 6331(i)(5), not § 6503(f)); added the § 6511(d) seven- and ten-year refund periods, the § 6330(e)(1) ninety-day floor, the § 6503(c) six-month tail, and currently-not-collectible.
- Tax avoidance vs. tax evasion: Initial publication from IRC §§ 7201, 7203, 7206, 7212 and 6663 and 18 U.S.C. § 3571, each opened at source.
- Tax return disclosure statements: Initial publication from the Instructions for Form 8275 (Rev. 10/2024) and Form 8275-R (Rev. 11/2024), IRC §§ 6662 and 6694, and Reg. § 1.6662-4.
- Taxpayer Advocate Service (e.g., criteria for requesting assistance): Initial publication from IRC §§ 7803(c) and 7811, and the Taxpayer Advocate Service criteria page, each opened at source.
- Third-party correspondence (e.g., witness communications, employment records): Initial publication from IRC §§ 7609, 7602, 7603 and 6501, each opened at source.
- Alternate forms of power of attorney (durable): Initial publication from 26 CFR §§ 601.502(c) and 601.503, Pub. 947 and the Instructions for Form 2848.
- Authority granted by the taxpayer, and its boundaries: Initial publication from 26 CFR Part 601 Subpart E.
- Conference and practice requirements (Publication 216): Initial publication from 26 CFR §§ 601.501–601.509, Subpart E of the Statement of Procedural Rules.
- Distinctions between power of attorney (Form 2848) and tax information authorization (Form 8821): Initial publication from the Instructions for Forms 2848 and 8821 and IRC § 6103(c).
- Limitations on signing a tax return for a taxpayer: Initial publication from IRC § 6061, § 6012(b) and Reg. § 1.6012-1(a)(5).
- Proper completion of power of attorney (Form 2848): Initial publication from the Instructions for Form 2848 (rev. 09/2021) and 26 CFR §§ 601.503, 601.504 and 1.6012-1(a)(5).
- Purpose of a Centralized Authorization File (CAF) number: Initial publication from 26 CFR § 601.506(d).
- Purpose of a power of attorney before the IRS: Initial publication from 26 CFR Part 601 Subpart E and Circular 230.
- Requirements to be met when changing or dropping representatives or withdrawal of representative: Initial publication from 26 CFR § 601.505.
- Rules for client privacy and consent to disclose: Initial publication from IRC §§ 6103(c), 7216 and 6713 and Reg. §§ 301.6103(c)-1 and 301.7216-3.
- Signature authority: consents, closing agreements, and refund checks: Initial publication from IRC § 6501(c)(4), § 7121, Reg. § 601.503 and Circular 230 § 10.31.
- Basis for having interest abated or refunded: Initial publication from IRC § 6404 and Reg. § 301.6404-2.
- Which penalties can be abated: Initial publication from IRC §§ 6651, 6656, 6662, 6663, 6404 and IRM 20.1.1.
- Grounds for abating or refunding a penalty: Initial publication from IRC §§ 6651, 6664(c), 6404 and IRM 20.1.1.
- Procedures for requesting abatement: Initial publication from the Instructions for Form 843 (rev. 12/2024) and IRC §§ 6404, 6511 and 6676.
- Interest recalculation: Initial publication from IRC §§ 6601, 6621 and 6622 and the IRS quarterly interest rates page.
- Explanations of taxpayer options (e.g. agree or appeal): Initial publication from Pub. 5 (Rev. 4-2021), Pub. 3498 (Rev. 5-2025), the IRS appeals pages last reviewed 28 June and 16 April 2026, and IRC §§ 6213, 6673, 7463 and 7803.
- Interpretation and analysis of Revenue Agent Report (RAR) (e.g., 30-day letter): Initial publication from Pub. 3498 (Rev. 5-2025), Pub. 5 (Rev. 4-2021), the IRS appeals pages last reviewed 28 June and 16 April 2026, and IRC §§ 6212, 6213 and 6501.
- Interpretation and analysis of CP-2000 notice and correspondence audits: Initial publication from IRC §§ 6212, 6213(a) and the IRS CP2000 series guidance.
- IRS authority to investigate: Initial publication from IRC §§ 7602, 7605 and 7609.
- IRS authority to fix time and place of investigation: Initial publication from IRC § 7605 and the full text of Reg. § 301.7605-1, both opened at source.
- Limited practitioner privilege (e.g., IRC Section 7525): Initial publication from IRC §§ 7525, 6662(d)(2)(C)(ii), 7521 and 31 U.S.C. § 330, each opened at source.
- Steps in the process: Initial publication from the IRS IRS audits page (last reviewed 17 February 2026) and IRC §§ 6212, 6213, 6501 and 7521.
- Taxpayer's burden of proof: Initial publication from IRC §§ 7491, 7454, 6902 and 6201(d), Tax Court Rule 142, and 28 U.S.C. § 2412(d)(2)(B), each opened at source.
- Verification and substantiation of entries on the return: Initial publication from IRC §§ 6001, 274(d), 6201(d) and 7602 Reg. § 1.6001-1 and IRC § 280F(d)(4), each opened at source.
- Adjustments to the taxpayer's account (e.g., abatements and refund offsets): Initial publication from IRC §§ 6402 and 6404.
- Amended returns and claims for refund (e.g., Form 1040X, Form 843, effect on statute of limitations): Initial publication from IRC §§ 6511, 6513 and 6501(c)(4), (c)(7).
- Collection due process: lien and levy hearings: Initial publication from IRC §§ 6320 and 6330 and IRM 8.24.1.
- Collection Appeals Program: fast review, no Tax Court: Initial publication from IRM 8.24.1 (revised 20 August 2024).
- Collection notice and Notice of Federal Tax Lien: Initial publication from IRC §§ 6321, 6322, 6323, 6325, 6320 and 6331(d).
- Currently Not Collectable (e.g., reasons and reactivation): Initial publication from IRM 5.16.1 as revised 3 March 2025, IRC § 6343(e) and Reg. § 301.6343-1(b)(4).
- Extension of time to pay (e.g., Form 1127): Initial publication from IRC §§ 6161, 6165, Reg. § 1.6161-1 and the Form 1127 guidance.
- Installment agreements: simple payment plans and the CSED: Initial publication. Records the replacement of streamlined installment agreements by simple payment plans, and the removal of the 72-month rule.
- IRS Collection Summons (e.g., purposes): Initial publication from IRC §§ 7602, 7603, 7604, 7605, 7609 and 7610.
- Collections statute of limitations: Initial publication from IRC §§ 6502, 6503, 6330(e), 6331(i), 6331(k) and 7122(f).
- Levy and seizure of taxpayer's property: Initial publication from IRC §§ 6331, 6334, 6335, 6337, 6343 and 6330, with § 6334 amounts from Rev. Proc. 2025-32.
- Offer in compromise: grounds, payment terms, and the 24-month rule: Initial publication from IRC § 7122, Reg. § 301.7122-1, and the current IRS offer in compromise guidance.
- Passport revocation: Initial publication from IRC § 7345, Rev. Proc. 2025-32 and the IRS passport certification guidance.
- Requesting an audit reconsideration (e.g., documents and forms): Initial publication from IRM 4.13.1 as revised 10 December 2025 and IRS Pub. 3598.
- Trust fund recovery penalty: Initial publication from IRC § 6672 and IRM 5.7.3 and 5.7.4 as revised June and July 2025.
- Representing a decedent: Initial publication from IRC §§ 6012(b)(1), 6501(d), 6901, 6903, 6905, 31 U.S.C. § 3713(b) and IRS Pub. 559.
- Statute of limitations: assessment, refund, and collection: Initial draft from primary sources.