Tax news and information - Journal of Accountancy

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January 19, 2021

Some individual taxpayers get relief from underpayment penalty

The IRS granted individual taxpayers a waiver from the penalty for underestimated tax due solely to the amendment to Sec. 461(l)(1)(B) in the CARES Act repealing the excess business loss limitations for years before 2021.

January 19, 2021

Taxpayers need clarity on coordination of ERC and PPP loans

The AICPA asked the IRS and Treasury to clarify that the filing of a Paycheck Protection Program loan forgiveness application is not an election by the taxpayer to forgo the employee retention credit for wages reported on the application exceeding the amount of wages necessary for loan forgiveness.

January 15, 2021

Tax filing season to start Feb. 12, IRS announces

The IRS announced that it will start accepting 2020 tax returns on Feb. 12, a later date than usual. The delay stems from programming changes needed to account for year-end tax legislation.

January 12, 2021

Final regs. govern deductibility of fines and penalties

The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.

January 12, 2021

Final rules on exempt organization excess remuneration

The IRS issued final regulations on the excise tax on excess remuneration over $1 million paid by tax-exempt organizations, finalizing proposed regulations with a few changes in response to comments.

January 8, 2021

Carried interests regulations are finalized

The IRS finalized proposed regulations on certain carried interests to account for changes made by the Tax Cuts and Jobs Act (TCJA). The TCJA extended from one year to three years the holding period for making carried interests eligible for capital gain treatment.

January 6, 2021

Final regs. address certain Sec. 163(j) rules

The IRS issued final regulations containing rules on the Sec. 163(j) interest expense limitation, including rules for specific passthrough entities and regulated investment companies.

January 5, 2021

Guidance permits change in vehicle use valuation during pandemic

In response to the COVID-19 pandemic, the IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method for determining the value of an employee’s personal use of a vehicle during the pandemic.

January 4, 2021

Final rules govern income inclusion and advance payments

The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the law known as the Tax Cuts and Jobs Act.

January 1, 2021

Final regs. issued on foreign partnership interests

Rules govern withholding on transfers and ECI.

January 1, 2021

Filing season quick guide — tax year 2020

Download and print our annual quick guide, a tax season reference, highlighting dollar thresholds, tax tables, standard amounts, credits, and deductions.

January 1, 2021

Enlist an ally in TAS

The Taxpayer Advocate Service stands ready to assist taxpayers and their representatives.

January 1, 2021

Tomato processor’s accrued production costs fail all-events test

The Tax Court holds that the fact of the liabilities was not yet established to currently deduct costs to restore, rebuild, recondition, and retest manufacturing facilities.

January 1, 2021

5 things CPAs need to know about bankruptcy

Examine aspects of bankruptcy, including whether a CPA is likely to get paid and steps that a business can take when dealing with a bankrupt customer.

January 1, 2021

Tax season preview

COVID-19 relief measures confront return preparers with novel predicaments. [Updated with tax provisions from the Consolidated Appropriations Act, 2021, the COVID-19 relief package signed into law in late December 2020.]

January 1, 2021

District court holds incarcerated individuals are entitled to economic impact payments

The IRS is ordered to make payments it previously denied.

January 1, 2021

Effect of delayed filings on statute of limitation

Assessment and refund time limits are clarified amid postponements caused by the pandemic.

December 27, 2020

PPP expense deductibility and forgiveness raises basis, other issues

The potential for the deductibility of PPP-funded expenses raises some practice questions, and traps for the unwary lurk in the details.

December 27, 2020

Many tax provisions appear in year-end coronavirus relief bill

The year-end coronavirus relief and spending bill passed by Congress includes many tax provisions, including pandemic-related relief, extensions of expired provisions, and a large number of miscellaneous items, including temporary 100% deductibility for business meals.

December 24, 2020

Simplified accounting rules for small businesses allow annual election

The IRS finalized regulations for simplified accounting rules for small businesses, which are defined as businesses with inflation adjusted average annual gross receipts of $25 million ($26 million for 2020 and 2021).