Tax news and information - Journal of Accountancy

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March 1, 2015

Right to purchase land is a capital asset

A taxpayer’s sale of his position in a lawsuit resulted in capital gain rather than ordinary income.

March 1, 2015

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.

March 1, 2015

Employment tax and worker classification not subject to TEFRA

In Field Attorney Advice 20145001F, the IRS concluded that the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), P.L. 97-248, does not apply to employment tax or worker classification examinations.

March 1, 2015

Final rules govern reporting of specified foreign financial assets

The regulations provide an exception for dual-resident taxpayers taxed as residents of a treaty partner country; IRS requests comments on virtual currency.

March 1, 2015

Cash balance plans for professional practices

Understand the rules for this leading form of retirement benefit.

March 1, 2015

The domestic production activities deduction for computer software

Know how to apply the rules to this fast-changing industry.

February 25, 2015

Taxpayers who already filed 2014 returns using incorrect Forms 1095-A won’t have to pay more tax

The IRS announced that about 800,000 taxpayers (20% of the people receiving the form) had received incorrect Forms 1095-A, Health Insurance Marketplace Statement, for 2014.

February 24, 2015

IRS asks for comments on proposed rules for high-cost health plans

The Affordable Care Act will impose a 40% excise tax on health care plans that provide excess benefits (so-called Cadillac health plans) starting in 2018. To prepare for its implementation, the IRS is asking taxpayers to comment on proposed rules.

February 20, 2015

Thousands receive incorrect health care tax forms; signup period extended

The government says it sent thousands of incorrect Forms 1095-A to taxpayers who signed up for health insurance on the HealthCare.gov website. It is working to correct those forms by early March.

February 19, 2015

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.

February 18, 2015

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.

February 17, 2015

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.

February 13, 2015

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.

February 13, 2015

FASB, AICPA working to clarify uncertain tax position guidance

The staffs of the Financial Accounting Standards Board and the AICPA will work together to clarify guidance for certain disclosures regarding uncertain tax positions.

February 10, 2015

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.

February 9, 2015

Final rules govern foreign tax credit splitter arrangements

The IRS finalized temporary regulations issued in 2012, called anti-splitter rules because they aim to prevent foreign income from being inappropriately split from foreign tax in calculating the foreign tax credit.

February 6, 2015

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.

February 6, 2015

2015’s dirty dozen tax scams

The IRS released its “dirty dozen” list of top tax scams for 2015, starting with phone scams and ending with frivolous tax arguments.

February 2, 2015

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.

February 1, 2015

Kiddie tax complexity grows

Complexity begins with the option for parents to “simplify” matters by allowing them to include the child’s income on the parents’ own return instead of filing a separate return for the child.

FROM THIS MONTH'S ISSUE

4 ways solo practitioners can stand out

Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.