The IRS offers a test and safe harbor for qualifying dual-function internal-use software.
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TOPICS / TAX
Business tax
Small businesses excused from filing Form 3115 to comply with repair regs.
IRS provides relief requested by AICPA and numerous others for accounting method changes.
IRS issues new and revised passenger automobile depreciation limits
New figures for 2014 reflect the retroactive extension of bonus depreciation.
Sec. 4980D excise tax relief is available for certain small employers
IRS gives limited transition relief for employer payment plans and 2% S corporation shareholder arrangements.
Former partner liable for trust fund penalty
A taxpayer couldn’t prove his CPA had responded to an IRS letter assessing the 100% penalty for failure to pay payroll tax.
Final regulations amend broker basis reporting requirements
The IRS issued final and temporary regulations that clarify and simplify rules regarding broker basis reporting issued in 2013.
Long-haul truck driver has no tax home
A long-haul truck driver who spent 358 days on the road during 2009 did not have a tax home that would permit him to deduct his travel expenses as unreimbursed business expenses.
IRS considering free e-filing for employment tax returns
The IRS asked for comments on a proposal to establish a free e-filing program for employment tax returns in an attempt to increase electronic filing of these returns by businesses.
Supreme Court holds trade association can challenge Colorado’s Amazon law
The U.S. Supreme Court held that federal law does not prevent a trade association from suing Colorado to prevent enforcement of a law that requires out-of-state retailers to report sales to Colorado purchasers.
Domestic production gross receipts not derived from free phone app
A bank does not have domestic production gross receipts for purposes of the Sec. 199 domestic production activities deduction when customers download its free mobile phone app.
The domestic production activities deduction for computer software
Know how to apply the rules to this fast-changing industry.
Employers have more time to claim work opportunity tax credit
Qualifying employers must file a certification that the employee being hired is a member of a targeted group, no later than the 28th day after the employee begins work.
Sec. 4980D excise tax relief is available for certain small employers
The IRS said that small employers will not be subject to the Sec. 4980D excise tax for health insurance employer payment plans that do not comply with the market reforms required under the health care law.
Employee consent to employment tax refunds could be obtained electronically
The IRS issued a proposed revenue procedure that would permit employers who file refund claims for overpaid Federal Insurance Contributions Act and Railroad Retirement Tax Act taxes to obtain their employees’ consent to the refund claims electronically.
Small businesses won’t have to file Form 3115 to comply with repair regs.
Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, the IRS announced.
Most outstanding claims for FICA tax refunds will be denied, IRS announces
The IRS announced that it would disallow all claims for refund that were filed for Federal Insurance Contributions Act taxes withheld on severance payments in light of the Supreme Court’s decision in Quality Stores, Inc., that those payments were subject to tax.
IRS issues revised 2014 and 2015 passenger automobile depreciation limits
The IRS issued new figures for depreciation deductions allowed for business use of passenger automobiles for 2014 to take into account the 50% additional depreciation that can be taken for vehicles during the 2014 tax year.
FASB proposes two changes to simplify accounting for income taxes
FASB proposed two standards changes that are designed to reduce complexity in accounting for income taxes.
Merger of family businesses results in gift tax
The Tax Court held that a merger of a family’s two businesses resulted in a $29.6 million transfer from the parents to their three sons and a gift tax deficiency. However, the court denied failure-to-file penalties on the gift due to the taxpayers’ reliance on a “competent professional.”
Final regs. prescribe E&P treatment in corporate reorganizations
New rules under Sec. 381 change which corporation succeeds to the tax attributes, including the earnings and profits (E&P), of the transferor or distributor corporation in certain acquisitions.
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