Tax news and information - Journal of Accountancy

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January 1, 2015

QLACs protect against outliving retirement savings

With longer retirements due to increasing life expectancies, today’s retirees have to worry about outliving their retirement savings.

January 1, 2015

Charitable trusts and the streamlined exempt-status application

It is not unusual for a tax adviser to suggest that a client involved in estate tax planning leave some assets to a charity.

January 1, 2015

Drawing the line: Providing tax advice related to the Affordable Care Act

CPAs who provide tax planning services may be well-positioned to provide clients with PPACA-related advice regarding the tax and cost issues associated with selecting health insurance plans. But other matters go beyond the scope of the CPA’s expertise.

December 24, 2014

Regulations tightening Form 5472 filing requirements are finalized

The IRS finalized proposed regulations issued last June requiring corporations to file Form 5472 with their timely filed tax returns or pay a large penalty.

December 23, 2014

Transfers of installment obligations would trigger gain or loss under proposed rules

The IRS issued proposed regulations that govern the tax treatment of transfers of installment obligations in exchange for equity interests in corporations or partnerships.

December 22, 2014

President signs tax extenders into law

President Barack Obama signed into law the Tax Increase Prevention Act of 2014, which retroactively extends more than 50 expired tax provisions through 2014.

December 17, 2014

New law creates tax-favored savings accounts for disabled taxpayers

The tax extenders legislation passed on Tuesday includes a provision allowing states to create tax-favored accounts to allow disabled taxpayers to save money to pay for their disability-related expenses.

December 16, 2014

Congress passes tax extender legislation

Included in the extended provisions are the research and development credit, bonus depreciation and higher limits under Sec. 179. The bill now goes to the president for his signature.

December 11, 2014

Final rules govern reporting of specified foreign financial assets

Final regulations issued on Thursday explain how taxpayers whose specified foreign financial assets are great enough to trigger the Sec. 6038D reporting requirement can comply with the rules.

December 10, 2014

Standard mileage rates will change slightly in 2015

The IRS issued the standard mileage rates for business use of an automobile, and for driving for medical or moving purposes, for 2015.

December 1, 2014

Interplay of the rental real estate grouping election and real estate professional exception

The IRS Office of Chief Counsel (OCC) advised on the interaction of the rental real estate grouping election and the real estate professional exception to the passive activity loss rules.

December 1, 2014

Changes proposed to allocation rules for rollovers

Disbursements containing both pretax and after-tax contributions may be treated as a single distribution.

December 1, 2014

Vision, dental, and long-term-care benefits qualify as limited excepted benefits

Final regulations drop requirement of an additional premium or contribution and address employee-assistance programs.

December 1, 2014

Tax phishing goes global with FATCA

Scam artists impersonating the IRS have been requesting foreign financial account holders’ personal and account information, the IRS warned in a news release.

December 1, 2014

CPA practitioners sue to stop PTIN fees

Plaintiffs say the $64.25 first-time fee and $63 annual renewal provide no special benefit under federal law.

December 1, 2014

AICPA identifies problems with IRS’s electronic signature rules

Verification through records checks and authentication questions may risk clients’ data security and be impractical for some.

December 1, 2014

IRS sending EITC due-diligence warnings

The IRS is sending warning letters to tax preparers it believes may not be complying with due-diligence requirements for the earned income tax credit (EITC).

December 1, 2014

Gains as gross income unaffected by Home Concrete

Taxpayers’ reported gross income included the gains from investment sales, not the gross proceeds, when determining the applicability of the six-year statute of limitation.

December 1, 2014

Final regs. include safe harbor for local lodging costs

Employer-required lodging expenses may now be deductible as an employee business expense or, if paid or reimbursed by the employer, excluded under an accountable plan, even if the employee is not away from home.

December 1, 2014

Per diem travel rates updated

Notice 2014-57 provides special per diem rates for use in substantiating certain business expenses taxpayers incur when traveling away from home for Oct. 1, 2014, through Sept. 30, 2015.