Tax news and information - Journal of Accountancy

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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

IRS: Tax season to start on time

The IRS announced that it will begin accepting e-filed and paper tax returns on time this filing season. The late passage of tax extender legislation had threatened to delay the start of tax season.

January 1, 2015

TIGTA: Process for complaints against preparers is too slow

The Treasury Inspector General for Tax Administration said in Rep’t No. 2014-40-056 that its audit indicated the IRS does not timely process complaints it receives against tax return preparers.

January 1, 2015

AICPA: Repair regulations’ de minimis safe harbor is set too low

The Institute asks the IRS for an increase in the threshold.

January 1, 2015

Streamlined offshore compliance procedures updated

Changes apply to taxpayers whose violations are nonwillful.

January 1, 2015

Notice defines terms for economic substance doctrine

“Similar rule of law” is limited to the same factors and analysis as under the codified economic substance doctrine for an accuracy-related penalty.

January 1, 2015

Canadian retirement plan beneficiaries get relief

Under the U.S.-Canada tax convention, beneficiaries in an arrangement exempt from taxation by Canada and operated exclusively to provide pension or employee benefits may defer U.S. recognition of income accrued in the plan but undistributed. A recently issued revenue procedure (Rev. Proc. 2014-55) provides new procedures for making this election,

January 1, 2015

Eighth Circuit weighs in on soil conservation payments

A taxpayer not engaged in the farming business who received payments from a government soil conservation program did not thereby have self-employment income.

January 1, 2015

Defined contribution plans can offer deferred annuities to older participants

The IRS confirms that target date funds restricted by age can comply with nondiscrimination requirements.

January 1, 2015

2015 pension contribution limits set

The IRS announced 2015 limitations and adjusted gross income (AGI) phaseout ranges for retirement plan contributions.

January 1, 2015

Tax-efficient investing in gold

Whether as bullion, coins, funds, stocks, or derivatives, gold holds an age-old fascination. Smart investing takes into account how gains are taxed.

January 1, 2015

IRS proposes scrapping COD nonpayment testing period

The Service says the 36-month period for reporting cancellation-of-debt income is ineffective and prone to confusion.

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.

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.