Tax news and information - Journal of Accountancy

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February 1, 2015

Affiliated group with QPSC allowed graduated tax rates

Regulations do not support the IRS’s “two baskets” approach of separating qualified personal service corporation income, the Tax Court holds.

February 1, 2015

FAQs on additional Medicare tax updated

The IRS provided additional guidance on the 0.9% additional Medicare payroll tax by updating two frequently asked questions (FAQs) on its webpage.

February 1, 2015

Seventh Circuit denies plaintiffs’ standing to challenge parsonage allowance

Group’s leaders did not claim the income exemption. Finding the plaintiffs lacked standing, the Seventh Circuit vacated a district court’s holding that the Sec. 107(2) “parsonage” rental allowance income exclusion for ministers violates the Constitution and remanded the case with instructions to dismiss it for lack of jurisdiction. Facts: Freedom

February 1, 2015

Merged corporations can offset tax interest

The surviving corporation and acquired corporations in a merger are considered the same taxpayer for purposes of interest offsetting.

January 28, 2015

Offshore Voluntary Disclosure Program to remain open indefinitely

The IRS stated that it intends to keep its Offshore Voluntary Disclosure Program open until it announces otherwise.

January 26, 2015

Taxpayers get penalty relief for incorrect premium tax credit advance payments

The IRS announced penalty relief for taxpayers who find they owe tax when they reconcile the advance payments of the premium tax credit they received with the amount they were entitled to when they file their 2014 tax returns.

January 23, 2015

Charter schools can participate in government retirement plans

The IRS announced that it will develop regulations that would permit a state or local retirement system that qualifies as a governmental plan to cover employees of charter schools.

January 20, 2015

Details of the president’s State of the Union tax proposals

The president aims to increase capital gains taxes for higher-income taxpayers in order to pay for various education, child care, and retirement benefits for middle-income taxpayers.

January 20, 2015

Proposed rules would govern Sec. 41 credit for software

The IRS issued proposed rules to provide guidance on what types of internal-use software qualify for the Sec. 41 research credit, an area of considerable controversy over the years.

January 16, 2015

IRS updates accounting method change procedures

The new rules apply to automatic and nonautomatic accounting method changes and include a list of automatic changes that do not require IRS consent.

January 13, 2015

Budget cuts may force IRS furlough days again

The IRS warned its employees that budget cuts may require it to furlough employees for two days sometime during this fiscal year.

January 12, 2015

AICPA provides feedback on tax reform proposals

The AICPA urged Rep. Paul Ryan, the new chair of the House Ways and Means Committee, to follow the AICPA’s principles of good tax policy to guide tax reform.

January 8, 2015

Government to reach out, provide resources to ease health care tax filing burden

The government announced today that, in the next few weeks, it will introduce “consumer-friendly” resources for taxpayers to use to comply with the new rules.

January 8, 2015

IRS issues procedures for reinstated transit benefits parity

As part of the Tax Increase Prevention Act of 2014, Congress retroactively reinstated the parity between transportation benefits for parking and for transit passes and vanpools to the beginning of 2014.

January 5, 2015

Getting into the swing of tax season

The 2015 tax filing season could be delayed and features several new health carerelated provisions for 2014 returns. Plus: The JofA’s annual Quick Guide, a printable card that contains dollar thresholds, tax tables, standard amounts, credits, and deductions to keep at your fingertips during tax season.

January 5, 2015