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The article focuses on several Code Sections including Section 23, Section 68 and Section 104, related to development of an individual taxation under the U.S. Internal Revenue Code. It states that the Section 23 is related to the denial of adoption expense credit to a taxpayer. It mentions that the Section 68 offers an overall limitation on itemized deductions under the American Taxpayer Relief Act of 2012. It reports that the Section 104 involves compensation for injuries or sickness.

EXECUTIVE SUMMARY * The IRS issued proposed regulations permitting deductions for certain local lodging expenses. * In Veriha, the Tax Court held that the Sec. 469 self-rental rule applied to a taxpayer who owned three companies, a trucking company and two truck-leasing companies, and thus the income from the S corporation truck-leasing company should be recharacterized as nonpassive, while the losses from his LLC truck-leasing company should remain passive. * In Quality Stores, Inc., the Sixth Circuit held that severance payments paid to terminated employees as a direct result of a workforce reduction are not subject to FICA tax. * In Rev. Rul. 2012-18,the IRS issued guidance about FICA taxes imposed on tips and the procedures for notice and demand for those taxes under Sec. 3121(q). Under Announcement 2012-50, the rules distinguishing between tips and service charges in the revenue ruling will not apply until Jan. 1,2014. [ABSTRACT FROM AUTHOR]

EXECUTIVE SUMMARY *The new Voluntary Classification Settlement Program permits employers who may have misclassified employees as independent contractors to enter into an agreement with the IRS with favorable settlement terms. *The IRS has issued new rules on the time in which a taxpayer must seek equitable innocent spouse relief. *The IRS has also issued more liberal rules for taxpayers to qualify for equitable innocent spouse relief. * The Tax Court held that a first-time homebuyer was entitled to a tax credit under Sec. 36 even though the seller held title until all installment payments had been made, and did not occupy the house for the year the credit was claimed because it needed renovations. [ABSTRACT FROM AUTHOR]

EXECUTIVE SUMMARY. * Several actions by Congress and the IRS aimed to reduce improper claims of the earned income tax credit by increasing preparer penalties and due diligence procedures. * Litigation over restricted stock-based compensation focused on the proper date of the stock's market valuation and the effect of company and SEC restrictions on disposition of the stock. * The Tax Court applied the IRS's recent practice of allowing professional gamblers to deduct ordinary and reasonable nonwagering business expenses over their gambling winnings, overturning a 1951 case holding. * The Tax Court also held that limited partners of a limited partnership who perform services for the partnership in their capacity as partners may be liable for self-employment taxes despite a general statutory exemption from self-employment income for limited partners' income. [ABSTRACT FROM AUTHOR]