Federal Tax Update for the Week of January 25, 2010

1. Taxpayer Taking Distribution From Qualified Plan for First Time Homeowner Payment Cannot Qualify for Relief From Early Distribution Tax
(Armbrust v. Commissioner, TC Summary Opinion 2010-5, 1/19/10)

2. IRS Designates Haiti Earthquake Qualified Disaster for Purposes Of IRC §139
( Notice 2010-16, 1/22/10)

3. Divorce Decree Did not Suffice to Allow Noncustodial Parent to Claim Dependent on Return
(Thomas v. Commissioner, TC Memo 2010-11, 1/19/10)

4. Taxpayer Must Have a Tax Home to be Able to Claim Temporary Living Expenses
(Minick v. Commissioner, TC Memo 2010-12)

5. Donations for Haitian Earthquake Relief Made in January and February 2010 Can be Treated as Made December 31, 2009
(HR 4662, 1/21/10)

6. Lack of Documentation Fatal to Deduction for Auto Expenses and Taxpayer Ineligible to Use Per Diem Amounts for Other Travel Expenses
(Roddie v. Commissioner, TC Summary 2010-7, 1/21/10)

7. IRS Releases Question and Answer Guidance on Implementing Provisions of the 2008 Heart Act
(Notice 2010-15, 1/20/10)

8. Spouse not Automatically Entitled to Spouse's IRA Account Even Though She Never Agreed to Designation of a Different Beneficiary
(Charles Schwab & Co v. Chandler, CA9 No. 07-15261, 1/22/10)

9. Taxpayer Denied Late IRA Rollover Relief When He Wrote Wrong Bank Account Number of Check Which Caused Funds to be Placed in Non-IRA Account
(PLR 201002049, 1/15/10)

10. Taxpayer Granted Permission by IRS to Accelerate Recovery of Basis Under Contingent Sales Price Installment Agreement
(PLR 201002006, 1/15/10)

11. Tax Court has No Relief to Offer Innocent Spouse Prior to Resolution of Partnership's TEFRRA Case
(Adkison v. Commissioner, CA9 No. 08-70485, 1/21/10)

12. Tax Court has No Jurisdiction to Prevent IRS From Publishing Private Letter Ruling
(Anonymous v. Commissioner, 134 TC No. 2, 1/19/10)

13. Taxpayer Not Liable for Substantial Understatement Penalty Only on Portion of Income Disclosed on Form 8275
(Campbell V. Commissioner, 134 Tc No. 3, 1/21/10)

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