What Is the “Servicemembers Civil Relief Act”?
06/04/2026
The Servicemembers Civil Relief Act (SCRA) is a powerful federal law designed to provide legal and financial protections to active-duty military personnel. It temporarily suspends or reduces certain civil obligations—such as tax payments, credit card interest, mortgages, leases, and lawsuits—so that service members can focus entirely on their operational missions. Under the SCRA, the IRS
What Is “Self-employment tax for clergy”?
06/04/2026
Self-employment tax for clergy refers to the Social Security and Medicare taxes that ordained, licensed, or commissioned ministers must pay on their ministerial earnings under the Self-Employment Contributions Act (SECA). Even if a minister is considered a regular employee by their church for federal income tax purposes, the IRS legally classifies them as self-employed for
What Is the “Energy Efficient Commercial Buildings Deduction”?
06/04/2026
The Energy Efficient Commercial Buildings Deduction, permanently established under Section 179D of the Internal Revenue Code, is a federal tax incentive that allows commercial property owners and building designers to accelerate the write-off of costs associated with installing energy-efficient systems. Calculated on a sliding scale based on the square footage of the structure, the deduction
What Is a “Revenue Ruling”?
06/04/2026
A Revenue Ruling is an official, public interpretation issued by the IRS that explains how federal tax law applies to a specific set of facts. Published in the Internal Revenue Bulletin (IRB), these rulings serve as legal precedents that taxpayers can rely on to understand how the IRS will treat similar situations. While they do
What Is a “Revenue Procedure”?
06/04/2026
A Revenue Procedure is an official statement issued by the IRS that provides step-by-step instructions and procedural rules for complying with federal tax laws. Published regularly in the Internal Revenue Bulletin (IRB), these documents outline how the IRS administers the tax code and how taxpayers should execute specific actions, such as changing an accounting method
What Is “Religious exemption from self-employment tax”?
06/04/2026
A religious exemption from self-employment tax is a legal provision under U.S. tax law that allows qualifying individuals to opt out of paying federal self-employment taxes (Social Security and Medicare) based on their religious beliefs. This exemption is strictly limited to ordained ministers, members of religious orders, Christian Science practitioners, and members of specific, recognized
What Is the “Rehabilitation Credit”?
06/04/2026
The rehabilitation credit, governed by Section 47 of the Internal Revenue Code, is a federal tax incentive designed to encourage the preservation, restoration, and reconstruction of certified historic structures across the United States. This program provides real estate investors, landlords, and business owners with a powerful 20% tax credit calculated from their total qualified rehabilitation
What Is a “Regular Tax Court Opinion”?
06/04/2026
A Regular Tax Court opinion, formally known as a division opinion, is a landmark legal decision issued by the United States Tax Court that establishes a permanent, binding legal precedent for federal tax law. These opinions are issued strictly for cases that introduce a novel legal issue, interpret an ambiguous statute, or challenge the validity
What Is “Reasonable Basis”?
06/04/2026
A reasonable basis is a relatively low, yet significantly structured legal standard used by the IRS to judge whether a tax position taken on a return is legitimately supportable. It requires your tax interpretation to be explicitly linked to one or more primary tax authorities—such as statutory laws, Treasury regulations, or court rulings—rather than a
What Is the “R&D Tax Credit”?
06/04/2026
The R&D tax credit, formally known as the Credit for Increasing Research Activities under Section 41 of the Internal Revenue Code, is a federal tax incentive designed to reward American businesses that invest in developing new or improved products, processes, software, techniques, or inventions. Unlike a standard deduction that merely reduces your taxable income, this