Tax news and information - Journal of Accountancy

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August 17, 2020

IRS posts information about check processing backlog and incorrect notices

As the IRS works through its backlog of correspondence, it has posted information about checks it hasn’t cashed yet and notices that went out with incorrect dates.

August 13, 2020

AICPA requests guidance on payroll tax deferral

The AICPA has asked Treasury and the IRS for guidance on the recently announced executive order that defers some employee payroll taxes that would be due between Sept. 1 and Dec. 31.

August 10, 2020

Final regs. issued on payments to charitable organizations

The IRS issued additional final regulations on payments made to charitable organizations in lieu of state and local tax credits.

August 10, 2020

Executive action delays workers’ payroll tax payments

President Donald Trump issued presidential memorandum to defer the withholding, deposit, and payment of certain payroll taxes paid from Sept. 1 through Dec. 31, 2020.

August 4, 2020

TIGTA critiques IRS’s protection of taxpayer data

The IRS continues to have challenges protecting taxpayer data, and especially ensuring that its various applications provide complete and accurate audit trails, according to the Treasury Inspector General for Tax Administration (TIGTA).

August 4, 2020

AICPA continues to ask Congress to include PPP deductibility in upcoming legislation

In a letter dated Aug. 4, 2020, the AICPA joined over 170 organizations to urge Congress to “include a technical correction addressing the tax treatment of loan forgiveness under the Paycheck Protection Program (PPP)” in its next round of legislation addressing the coronavirus pandemic.

August 3, 2020

Proposed rules govern carried interests

The Irs issued proposed regulations under Sec. 1061, enacted by the law known as the Tax Cuts and Jobs Act, which requires owners of certain partnership interests to hold them for three years to be eligible for capital gain treatment.

August 1, 2020

Tax Court denies deduction for conservation easement

The deed fails to protect conservation purposes in perpetuity, the court finds; a divided opinion holds the extinguishment regulation is valid.

August 1, 2020

Line items

State law applied in lieu of Bob Richards rule … Amended returns to join the electronic age … Midyear cafeteria plan changes allowed

August 1, 2020

Liquidation of assets not mandated for taxpayers’ installment agreement

The Tax Court finds the taxpayers’ residence and other properties were necessary for the production of income or the health and welfare of the family.

August 1, 2020

‘Retail glitch fix’ gets guidance

Methods for claiming bonus depreciation and 15-year class life for qualified improvement property provide relief but come with a deadline.

August 1, 2020

Offside penalty — IRS

To win a client’s tax case, it helps to know the IRS’s rulebook.

August 1, 2020

Supervisory approval of penalties

Federal courts continue to clarify the contours of the Sec. 6751(b) managerial approval requirements for certain penalty assessments.

July 30, 2020

Simplified accounting rules issued for small businesses

The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.

July 30, 2020

IRS to allow faxing of automatic method change requests

The IRS announced that, beginning Friday, in response to the coronavirus pandemic, it is temporarily accepting duplicate copies of Form 3115, Application for Change in Accounting Method, sent by fax instead of mail.

July 29, 2020

IRS issues business interest expense limitation guidance

The IRS issued a package of related guidance on the business interest expense limitation enacted in the law known as the Tax Cuts and Jobs Act and amended by the CARES Act.

July 27, 2020

Guidance on recapture of excess employment tax credits

The IRS issued temporary and proposed regulations on how it will recapture excess credits taken by employers under recent coronavirus relief legislation.

July 21, 2020

GILTI rules address income subject to high foreign tax rate

The IRS issued final regulations under the global intangible low-taxed income (GILTI) rules on the treatment of income subject to a high rate of foreign tax. At the same time, the IRS issued proposed rules conforming the GILTI high-tax exception rules with the Subpart F high-tax exception.

July 17, 2020

Fed expands Main Street Lending Program to more not-for-profits

The Federal Reserve board announced that it has made changes to the Main Street Lending Program to allow more participation from not-for-profits, including educational institutions, hospitals and social service organizations.

July 17, 2020

IRS updates annual Dirty Dozen tax schemes for 2020

The IRS issued its top 12 “Dirty Dozen” tax scams, warning people to be vigilant to avoid these schemes all year round. New to the list is the “offer in compromise mills.”

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