Line items


LB&I launches data analytics compliance program

In May, with News Release IR-2019-95, the IRS announced that its Large Business and International (LB&I) Division began a compliance program to replace its Coordinated Industry Case program. The new program, called Large Corporate Compliance (LCC), uses data analytics to identify the largest and most complex corporate taxpayers by such criteria as gross assets and gross receipts. Previously, selecting target corporations "was done on a manual, localized basis" that LCC will perform more efficiently and objectively, the IRS said. Data analytics are further used to identify returns that LCC deems pose the highest compliance risk.

Vehicle depreciation limits for 2019

In Rev. Proc. 2019-26, the IRS provided the limitations on depreciation deductions for passenger cars, trucks, and vans first placed in service in 2019.

For passenger automobiles to which the Sec. 168(k) additional (bonus) first-year depreciation deduction applies and that were acquired before Sept. 28, 2017, and placed in service during calendar year 2019, the depreciation limit under Sec. 280F(d)(7) is $14,900 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.

For passenger automobiles to which the Sec. 168(k) additional (bonus) first-year depreciation deduction applies and that are acquired after Sept. 27, 2017, and placed in service during calendar year 2019, the depreciation limit under Sec. 280F(d)(7) is $18,100 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.

For passenger automobiles for which no bonus first-year depreciation deduction applies, the depreciation limit under Sec. 280F(d)(7) is $10,100 for the first tax year; $16,100 for the second tax year; $9,700 for the third tax year; and $5,760 for each succeeding year.

HSA contribution limits for 2020

The IRS in Rev. Proc. 2019-25 provided the 2020 inflation-adjusted limits on deductible or excludable contributions to a health savings account (HSA): $3,550 for individuals with self-only coverage under a high-deductible health plan (HDHP) (a $50 increase from 2019) and $7,100 for family coverage (a $100 increase from 2019).

The limits on annual deductibles are also subject to annual inflation adjustments. For 2020, the lower limit on the annual deductible for an HDHP is $1,400 for self-only coverage and $2,800 for family coverage, both increased from 2019. The upper limit for out-of-pocket expenses is $6,900 for self-only coverage and $13,800 for family coverage, both increased from 2019.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.