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Select Check is now Tax Exempt Organization Search

In May, the IRS replaced its former Select Check database of exempt organizations with a new online Tax Exempt Organization Search service (www.irs.gov) to better allow taxpayers and preparers to confirm organizations' eligibility to receive tax-deductible charitable contributions. The Service also issued Rev. Proc. 2018-32, modifying, superseding, and combining several previous procedures relating to exempt organizations and deductible contributions. The new procedure describes the lists and databases and provides guidance on taxpayer and private foundation reliance on them for purposes of deducting contributions under Sec. 170 and making grants under Secs. 4942, 4945, and 4966, respectively. The revenue procedure also provides a safe harbor providing conditions under which a grantor's or contributor's grant or contribution will not cause the grantor or contributor to be considered to be responsible for, or aware of, an act that results in an organization's loss of public charity classification.

New FASB and IFRS standards get method change procedure

In Rev. Proc. 2018-29, the IRS provided procedures for taxpayers changing their method of accounting for the recognition of income for tax purposes to a method described in new FASB Topic 606 and IFRS 15, Revenue From Contracts With Customers. Publicly traded entities, certain not-for-profit entities, and certain employee benefit plans are required to adopt the new accounting standards for annual reporting periods beginning after Dec. 15, 2017. All other entities are required to adopt the new standards for annual reporting periods beginning after Dec. 15, 2018. Early adoption is allowed for reporting periods beginning after Dec. 15, 2016 (see "U.S. Tax and FASB's New Paradigm for Revenue Recognition," JofA, June 2017). The revenue procedure modifies Rev. Proc. 2017-30 to provide procedures under Sec. 446 and Regs. Sec. 1.446-1(e) to obtain IRS automatic consent to change to an accounting method that uses the new standards to identify performance obligations, allocate transaction price to performance obligations, and/or consider performance obligations satisfied.

Rev. Proc. 2018-25 updates passenger auto depreciation, lessee income inclusion for TCJA

In Rev. Proc. 2018-25, the IRS updated the Sec. 280F(a) limitations on the depreciation deduction for passenger automobiles, applicable for vehicles placed in service during 2018. The updates reflect changes made by P.L. 115-97, known as the Tax Cuts and Jobs Act (TCJA). The revenue procedure includes three depreciation tables: one for automobiles acquired before Sept. 28, 2017, for which Sec. 168(k) bonus depreciation applies; one for such vehicles acquired after Sept. 27, 2017; and one for which no bonus depreciation applies. A fourth table provides updated income inclusion amounts under Sec. 280F(c)(2) for passenger automobiles with a lease term beginning in 2018.

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Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.