Tax news and information - Journal of Accountancy

TOPICS

June 1, 2021

Cattle farm with no cattle denied farming losses

The Tax Court holds that the activity was a hobby of the taxpayer despite his farming experience.

June 1, 2021

A practical guide to economic nexus

New sales tax nexus standards are creating a larger compliance footprint for U.S. companies and, potentially, foreign entities selling into the U.S. State and local taxing authorities have new tools for identifying and enforcing companies’ exposures for sales and use tax.

June 1, 2021

Time to opt in for an IP PIN?

Now that most taxpayers may obtain an identity protection personal identification number, should they?

May 28, 2021

President’s budget contains many tax proposals

The proposed $6 trillion fiscal year 2022 budget unveiled by the Biden Administration includes a host of tax items, including proposals to raise the corporate tax rate, raise the top tax rate for high-income individuals, limit like-kind exchanges, and make permanent recent temporary changes to various tax credits.

May 27, 2021

A closer look at paid tax preparer regulation

An AICPA senior manager explains why the AICPA recently offered recommendations on six key areas of regulation of paid tax return preparers.

May 27, 2021

Draft employer’s payroll tax return incorporates ARPA changes

A proposed new version of Form 941, Employer’s Quarterly Federal Tax Return, reflects relief provisions of the American Rescue Plan Act.

May 24, 2021

Sorting out tax exempts’ UBTI painlessly

To help exempt organizations “silo,” or separately compute, their unrelated business or trade income, three experts who will be giving a presentation on the topic at the upcoming Not-for-Profit Industry Conference offer their thoughts.

May 19, 2021

COBRA premium assistance credit under ARPA clarified

The IRS answered questions concerning COBRA continuation coverage premium assistance and the corresponding tax credit that employers, plan administrators, and insurers may claim under the American Rescue Plan Act.

May 18, 2021

How nonfilers can claim advance child tax credit payments

The IRS explained in a revenue procedure how individuals can claim advance child tax credit payments and stimulus payments if they are not required to file 2020 federal income tax returns.

May 17, 2021

Supreme Court: Microcaptive reporting challenge may go forward

Reversing the Sixth Circuit, the Supreme Court held that an injunction sought against an IRS notice is not barred by the Anti-Injunction Act because it challenges a reporting requirement and not a tax.

May 17, 2021

Taxpayers deserve pandemic penalty relief, AICPA says

In a letter to the IRS and Treasury, the AICPA recommended, in light of the ongoing COVID-19 pandemic, that the IRS implement fair, reasonable and practical penalty relief measures, including targeted relief from both the underpayment-of-estimated-tax penalty and the late-payment penalty for the 2020 tax year.

May 12, 2021

6 key areas of paid tax preparer regulation highlighted in AICPA letter to Congress

The Biden administration says the IRS should be given the authority to regulate paid tax return preparers who are currently unregulated, and the AICPA offers its recommendations in six key areas.

May 11, 2021

IRS clarifies pandemic relief for dependent care assistance programs

Dependent care assistance program benefits carried over or available during an extended claims period under special temporary COVID-19 relief provisions retain their status as excludable from employees’ gross income and wages, the IRS explains in a notice.

May 10, 2021

2022 HSA, excepted-benefit HRA amounts increase slightly

Maximum health savings account annual contributions will increase by $50 to $3,650 for self-only and $100 to $7,300 for family coverage for 2022. Inflation adjustments in Rev. Proc. 2021-25 also increase maximum out-of-pocket expenses for high-deductible health plans.

May 1, 2021

Line items

Schoolteacher expense deduction items include PPE … IRS proposes fee for estate closing letters … FBARs to include virtual currency

May 1, 2021

Court holds refund claims were not duly filed

Taxpayers’ failure to sign amended returns or power-of-attorney form prompts dismissal.

May 1, 2021

Taxpayers adequately apprised the IRS of their change in address

The appellate court holds that the IRS knew or should have known of the change.

May 1, 2021

American Rescue Plan Act enacts many tax provisions

Here’s a look at changes affecting 2020 and 2021 that were included in Congress’s stimulus legislation.

May 1, 2021

Deduction denied for home donated as salvage

The Fourth Circuit affirms that, without recording a transfer of ownership, the owners’ interest in the property was not severed.

April 26, 2021

2021 child tax credit, EITC, and premium tax credit limits updated

The IRS issued guidance on the amount of and limitations on the child tax credit, earned income tax credit, and premium tax credit available for taxpayers for the 2021 tax year as a result of changes to those provisions enacted by the American Rescue Plan Act of 2021, P.L. 117-2.