Tax news and information - Journal of Accountancy

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November 13, 2020

IRS will mask business tax transcript identifying information

The IRS announced that beginning Dec. 13 it will mask sensitive data on business tax transcripts, a step it took two years ago for individual tax transcripts.

November 10, 2020

Partnerships and S corps. can deduct state and local taxes

The IRS said it would issue proposed regulations allowing S corporations and partnerships to deduct “specified income tax payments” paid to state and local governments above the line and not as passthrough items for partners and shareholders.

November 9, 2020

Taxpayers allowed choice of bonus depreciation rules

The IRS issued rules for taxpayers to follow in applying recently issued bonus depreciation regulations, including how to make several elections.

November 3, 2020

IRS announces help with tax debt

The IRS said it was revising its procedures to help taxpayers who cannot pay their taxes because of the pandemic. The new program is called the Taxpayer Relief Initiative.

November 1, 2020

COVID-19 and withdrawals from retirement plans

Taxpayers under financial duress caused by the pandemic can avoid penalties.

November 1, 2020

Payroll outsourcing services described

Some assume liability for taxes and/or responsibility for returns.

November 1, 2020

Deducting losses in the CARES Act’s window

For a limited time, taxpayers have flexibility for using net operating losses.

November 1, 2020

Taxpayers are allowed charitable contribution deductions for land

The donations had donative intent, were reasonably valued, and were supported with documentation that substantially complied with the regulations, the Tax Court finds.

November 1, 2020

N.J. business incentive grants are taxable

The Third Circuit reverses the Tax Court, which had held the relocation payments to be nonshareholder capital contributions.

November 1, 2020

Limiting the impact of negative QBI

Here are the rules for the treatment of negative QBI and some planning ideas for mitigating its effect on the QBI deduction.

November 1, 2020

Preparers beware: PTIN fees are back

After a lengthy hiatus and despite ongoing litigation, final regulations are in place.

October 30, 2020

Guidance on deferred employee payroll tax issued

The IRS issued guidance to employers and employees on reporting deferred Social Security tax on Form W-2, Wage and Tax Statement, under the Aug. 8 Presidential Memorandum authorizing the deferral.

October 28, 2020

Template for requesting penalty abatement available from AICPA

The AICPA has created a template for members to use when requesting a penalty abatement from the IRS. Many taxpayers are receiving penalty notices after COVID-19 hampered their ability to meet tax filing obligations.

October 26, 2020

2021 inflation adjustments and tax tables issued

The IRS issued the 2021 inflation adjustment amounts and tax tables for use in preparing 2021 tax returns in the 2022 filing season. Many of the over 60 items increased from 2020.

October 26, 2020

Inflation-adjusted income ranges for 2021 IRA and 401(k) plans

The IRS announced that the income ranges for employee participation in workplace 401(k) plans and IRA contributions will increase from 2020 to 2021. Most of the other retirement plan contribution limits stayed the same, however.

October 22, 2020

Draft instructions for partnership capital account reporting released

The IRS released draft instructions for Form 1065, U.S. Return of Partnership Income, to calculate partner capital accounts using the tax-basis method.

October 19, 2020

Unclaimed property distributions allowed as self-certified rollovers

The IRS issued guidance adding state unclaimed property fund distributions to the list of reasons that taxpayers may self-certify that they missed the 60-day deadline to roll over funds to a qualified retirement plan.

October 19, 2020

FBAR deadline extended to Oct. 31 after confusion

After a misworded posting caused confusion about the 2020 deadline to file FBARs (i.e., FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)), Treasury’s Financial Crimes Enforcement Network has extended the deadline to Oct. 31.

October 16, 2020

Inflation-adjusted limit for 2021 HRAs issued

The IRS issued the 2021 limit for excepted benefit health reimbursement arrangements using the Chained Consumer Price Index for All Urban Consumers inflation-adjustment method.

October 15, 2020

FinCEN pulls announcement of extended FBAR deadline

Treasury’s Financial Crimes Enforcement Network briefly announced, but then rescinded, an extension of this year’s deadline to e-file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).

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