Tax news and information - Journal of Accountancy

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July 1, 2020

Denial of taxpayer’s travel deductions is upheld

An appellate court finds that the Tax Court correctly disallowed a taxpayer’s travel deductions because he was not away from home.

June 30, 2020

IRS will not postpone July 15 deadline

The IRS announced that it will not further postpone federal tax filing and payment deadlines beyond July 15.

June 24, 2020

RIC shareholders can take Sec. 199A deduction for REIT dividends

The IRS issued final regulations allowing regulated investment companies (RICs) to report qualified real estate investment trust (REIT) dividends as Sec. 199A dividends to their shareholders.

June 23, 2020

Rollover relief for required minimum distributions

The IRS provides relief for taxpayers who had already taken required minimum distributions (RMDs) in 2020 before the CARES Act suspended the RMD requirement for 2020 in response to the coronavirus pandemic and its effect on taxpayers and the stock market.

June 22, 2020

Proposed regs. explain disallowed transportation fringe benefits

The IRS issued proposed regulations implementing changes to Sec. 274 that disallow a deduction for the expense of any Sec. 132(f) qualified transportation fringe provided to an employee, effective for amounts paid or incurred after Dec. 31, 2017.

June 19, 2020

Guidance on how to take CARES Act distributions from qualified plans

The IRS released guidance on how taxpayers can take coronavirus-related distributions from qualified retirement plans as authorized by the CARES Act.

June 11, 2020

Leave-based donation program available during pandemic

The IRS announced that employers may make donations this year to charitable organizations that provide relief to COVID-19 pandemic victims in exchange for personal leave that their employees forgo.

June 9, 2020

Rules proposed for direct primary care arrangements, health care sharing ministries

The IRS issued proposed regulations defining direct primary care arrangements with doctors and health care sharing ministries and how payments for them can qualify as Sec. 213 medical expenses.

June 8, 2020

AICPA recommends changes to e-signature requirements

In a letter to the IRS, the AICPA asked the IRS to permanently amend its electronic signature procedures to make it easier for taxpayers and practitioners to e-file all types of returns.

June 5, 2020

Qualified opportunity zone rules are relaxed

In response to the COVID-19 pandemic, the IRS further postponed the 180-day deadline to invest in a qualified opportunity fund from July 15, 2020, to Dec. 31, 2020, extended other deadlines, and relaxed some qualified investment rules.

June 3, 2020

IRS permits remote signatures for plan loan consents

In another response to the COVID-19 pandemic, the IRS is allowing retirement plan participants who want to take coronavirus-related distributions from their retirement plans to provide remote signatures, even for spousal consents.

June 1, 2020

Chartering vessel to decommission oil and gas wells is ECI

Continental shelf activities are nonexempt under the US—UK treaty, the Tax Court holds.

June 1, 2020

Taxpayers’ petition to the Tax Court was untimely

A USPS postmark trumps a non-USPS postmark when a mailing has both.

June 1, 2020

Line items

IRS disagrees with Paychex holding … OIC fee is higher, but with more low-income assistance … KPMG director is named national taxpayer advocate

June 1, 2020

Financial planning strategies for depressed asset values

Consider these financial planning strategies in a period of low interest rates and high volatility.

June 1, 2020

Look before you leap into a 529 plan

Circumspection is called for in funding students’ higher education.

May 28, 2020

E-filing of Form 1040-X coming this summer

The IRS announced that taxpayers will be able to electronically file Forms 1040-X, Amended U.S. Individual Income Tax Return, later this summer.

May 27, 2020

Final regs. address reporting by tax-exempt organizations

The IRS finalized regulations permitting tax-exempt organizations other than Sec. 501(c)(3) orgs. to omit the names of substantial donors when filing Forms 990.

May 26, 2020

Premium tax credit unaffected by personal exemption decrease to zero

The IRS issued proposed regulations explaining how taxpayers who may qualify for the Sec 36B premium tax credit are affected by the temporary reduction of the personal exemption deduction under Sec. 151 to zero.

May 20, 2020

HSA contribution limits increase for 2021

The IRS issued its annual inflation-adjusted contribution limits for contributions to health savings accounts permitted to participants in high-deductible health plans. Most of the amounts increased slightly over the 2020 amounts.