Taxation Newsletters

Administrative Law

Under the Freedom of Information Act (FOIA), the public is entitled to access agency records unless they are protected from disclosure by one of the FOIA’s exemptions or exclusions. The Internal Revenue Service complies with the FOIA by maintaining publicly available materials on the Internet, staffing the IRS Public Reading Room in Washington, D.C., and by responding to written requests for agency records not available in the Reading Room.

Cancellation of Certain Student Loans

The general rule is that if you are responsible for making loan payments and the loan is forgiven, you are required to include the amount of the cancelled loan in your gross income for federal income tax purposes. However, under certain circumstances, a forgiven student loan may be entitled to tax-free treatment.

Due Process in IRS Collection Actions

The Internal Revenue Service is now required to give taxpayers whose property might be levied upon pre-notification of the levy and an opportunity for a formal hearing and judicial review.

History of the Internal Revenue Service

Believe it or not, the Internal Revenue Service did not come over to this country on the Mayflower with the Pilgrims. The agency’s history goes back to 1862 when Congress and President Lincoln created the position of the Commissioner of the Internal Revenue and enacted the first income tax to pay for the Civil War. After that tax was repealed on the ground that it was a direct tax and not apportioned among the states on the basis of population, Congress revived the income tax in 1894, but the Supreme Court determined that it was unconstitutional.

Tax Advice for Newlyweds

Newly married individuals should notify the Internal Revenue Service of name and address changes. A change in marital status will affect an individual’s filing status. Marital status is determined on the last day of the year, so if you were married on December 31, the IRS considers you to have been married for the entire year.