Tax news and information - Journal of Accountancy

TOPICS

August 14, 2015

New law imposes immediate estate basis and reporting requirements

The highway funding bill made changes to the Internal Revenue Code that affect estates and beneficiaries, including new reporting rules.

August 13, 2015

Identity theft protection services provided after a data breach are not taxable

The announcement applies to anyone whose personal information may have been compromised in a data breach, including customers, employees, and others.

August 12, 2015

Temporary regulations end automatic extension for Forms W-2

In a move designed to fight taxpayer identity theft and tax fraud, the IRS will eliminate automatic extensions of time to file forms in the W-2 series, starting in 2017.

August 10, 2015

Ninth Circuit holds mortgage-interest deduction applies on a per-taxpayer basis

Unmarried co-owners of two qualified residences each qualified for mortgage-interest deductions on up to $1.1 million of acquisition indebtedness the Ninth Circuit Court of Appeals held.

August 1, 2015

Tax treatment of drug development company startup costs

Long lead times, high upfront expenses, and frequent business acquisitions and dissolutions make applying Sec. 195 a special concern for these companies.

August 1, 2015

Moved south but still taxed up north

Retirees often move to the southern United States to take advantage of lower taxes, but they should know how their former state of residence will treat them if they leave any property behind.

August 1, 2015

Basis rules for estates of 2010 decedents proposed

Carryover basis election for estates electing out of estate tax requires special adjustments.

August 1, 2015

Gifts to family trust are present interests in property

Annual exclusions were available for gifts to a family trust that qualified as a Crummey trust.

August 1, 2015

Sec. 179 and the repair regs.

Applying the two together may provide a larger overall deduction.

August 1, 2015

The IRS issued the inflation-adjusted figures for calendar year 2016 for the annual contribution limits for health savings accounts and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.

August 1, 2015

Kess Award honors excellence in tax and financial planning continuing education

Julie A. Welch received the 2015 Sidney Kess Award for Excellence in Continuing Education.

August 1, 2015

Supreme Court invalidates Maryland’s personal income tax structure

Lack of a state tax credit for a ‘county’ tax is held to violate the dormant Commerce Clause.

August 1, 2015

No COD income from loans

Expiration of state limitation period on loan collection wasn’t conclusive of debt discharge.

August 1, 2015

FBAR penalty amount guidelines set

Maximum penalties for willful failure to report foreign bank accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), for multiple years are limited under new IRS procedures.

August 1, 2015

Intent to rent

Taxpayers will not be able to deduct expenses and losses related to a former personal residence if the facts and circumstances fail to show the conversion was for income-producing purposes.

August 1, 2015

TIGTA: More identity-theft returns stopped, filters still need refinement

In the 2013 filing season, the IRS identified 4.1 million fraudulent returns involving identity theft.

July 31, 2015

Return due dates changed in highway funding bill

The federal highway funding extension bill passed by Congress contains several tax provisions, including changing the due dates for partnership, S corporation, and corporate tax returns, a provision the AICPA has long advocated.

July 30, 2015

New safe harbor governs accounting for ratable service contracts

Qualifying accrual-basis taxpayers will be allowed to treat economic performance of certain service contracts as occurring on a ratable basis under a safe harbor introduced by the IRS.

July 28, 2015

Tax Court invalidates stock-based compensation rule in cost-sharing agreements

The Tax Court held that Regs. Sec. 1.482-7(d)(2), requiring entities to share stock-based compensation costs under qualified cost-sharing agreements, failed to meet the reasoned decision-making standard and was invalid.

July 23, 2015

Regulations provide guidance on proper place to file refund claims

The new rules generally require taxpayers filing claims for refund or credit to file their claim with the IRS service center at which the taxpayers currently would be required to file a tax return for the type of tax to which the claims relate.