Tax news and information - Journal of Accountancy

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October 1, 2020

Employers get guidance on income tax withholding from wages

The IRS issued final regulations providing guidance on withholding federal income tax from employees’ wages under changes enacted in the Tax Cuts and Jobs Act.

October 1, 2020

Settlement agreement’s capital gain allocation withstands challenge by IRS

The Tax Court finds a payment was for repudiated joint venture interests, not future income.

October 1, 2020

Taxpayer advocate reports on IRS COVID-19 challenges

National Taxpayer Advocate Erin Collins assesses the IRS’s response to the coronavirus pandemic.

October 1, 2020

Individual mandate payment is a priority debt in bankruptcy

A bankruptcy court applies the Supreme Court holding that the payment is a tax, not a penalty.

October 1, 2020

Tax consequences of data breaches and identity theft

Losses are not likely deductible by individuals through 2025, but the receipt of free identity protection services may be nontaxable.

October 1, 2020

Like-kind exchanges are now clearer

Proposed regulations address post-TCJA Sec. 1031 transactions.

October 1, 2020

Nonwillful penalties are assessed per FBAR form, not per account

The holding by a district court in the Fifth Circuit conflicts with a case moving through the Ninth Circuit.

October 1, 2020

Time to consider a Roth conversion

A qualified rollover contribution to a Roth IRA or an in-plan rollover to a designated Roth account, known as a Roth conversion, can be attractive for CPA advisers’ clients because it provides a higher net present value of cash flow from their retirement savings, benefiting themselves or their beneficiaries.

September 30, 2020

Foreign tax credit allocation and apportionment rules finalized

The IRS issued final and proposed regulations covering a wide variety of issues involving deductions and credits for foreign taxes.

September 28, 2020

Small business accounting regulations and tax shelter implications

New simplified accounting rules for small businesses do not apply to tax shelters — and the definition of a tax shelter can cause problems for businesses with large deductions or losses during a tax year.

September 25, 2020

Returns affected by e-filing outage will be timely if filed by Sept. 17

For tax returns with a Sept. 15 due date that were affected by an e-filing software outage, the IRS will treat a return and any elections that were filed with that return as timely filed if the taxpayer successfully e-filed the return and any elections by Sept. 17, 2020.

September 22, 2020