June 13, 2012
Posted June 14, 2012
IRS Clarifies Salary Reduction Effective Date for Health FSAs
The IRS clarified the effective date of the $2,500 limit on salary reduction contributions to health flexible spending arrangements (FSAs) under the 2010 Patient Protection and Affordable Care Act (PPACA). Notice 2012-40 also provides guidance on plan amendments and certain contributions that exceed the $2,500 limit.
Tax Court Upholds Denial of $19 Million Charitable Deduction
The tax court has upheld the IRS’s disallowance of a charitable contribution deduction because the donor failed to follow the substantiation requirements of IRS Code Sec. 170. Specifically, the taxpayer’s donation appraisals did not qualify because he did them himself.
IRS Shares Statistics From Higher-Income Tax Returns
The IRS has released its spring 2012 statistics of income (SOI) bulletin, in which it reports that 3.92 million higher-income individual taxpayers filed returns reporting adjusted gross income (AGI) of $200,000 or more, and 3.97 million taxpayers filed returns with expanded income of $200,000 or more.
