Tax news and information - Journal of Accountancy

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May 31, 2019

IRS issues draft of revised Form W-4 for 2020

The new draft form, which has been extensively redesigned, is intended to simplify the calculation of income tax withholding after the changes made by the law known as the Tax Cuts and Jobs Act.

May 28, 2019

2020 limits on HSA contributions are issued

The IRS issued its annual notice of the inflation-adjusted limits on contributions to health savings accounts. All of the limits increased from 2019 to 2020.

May 21, 2019

2019 inflation-adjusted vehicle depreciation limits and income inclusions issued

The IRS provided the limitations on depreciation deductions for passenger automobiles first placed in service in 2019 and the amounts of income inclusion for lessees of passenger automobiles first leased during 2019.

May 17, 2019

Sales tax proposals threaten to ensnare CPA firms

Accountants aren’t necessarily being singled out, but rather legislative and city leaders are trying to find ways to spread tax liabilities around a broader base or meet their budget needs.

May 17, 2019

IRS corrects error in Schedule D tax calculation worksheet

The IRS notified tax software companies that it had discovered an error in the Schedule D, Capital Gains and Losses, Tax Worksheet used to calculate the tax on certain capital gains that had new rates as a result of the law known as the Tax Cuts and Jobs Act.

May 14, 2019

IRS extends filing deadlines for CCH customers

The IRS announced that taxpayers affected by the recent Wolters Kluwer service outage who are facing May 15 filing deadlines can follow certain procedures to obtain reasonable cause waivers for failing to file on time.

May 14, 2019

FASB proposes simplifying accounting for income taxes

FASB issued a proposal that is intended to make accounting for income taxes less costly and complex.

May 10, 2019

Distribution by former S corporation is part dividend

The IRS ruled that a distribution to the sole shareholder of a C corporation was partly a recovery of the former S corporation’s accumulated adjustments account (AAA) and a taxable dividend for the remaining distribution.

May 9, 2019

IRS changes maximum-vehicle-value rule

The IRS revised its maximum-vehicle-value rule for personal use of an employer-provided vehicle for 2019 for both the cents-per-mile rule and the fleet-average-valuation rule.

May 1, 2019

Line items

New QBI deduction form to debut … IP PIN voluntary program expands … Tax debts may stymie international travel, IRS warns

May 1, 2019

Appeals court upholds PTIN fees

The lower court is given the task of determining what is a reasonable amount.

May 1, 2019

Question of material fact existed for untimely filed tax return

Whether a tax preparer, as the taxpayers’ agent, was negligent was an unresolved issue that precluded summary judgment.

May 1, 2019

Appeals court denies taxpayers’ attempt to revoke NOL election

The fact the taxpayers’ preparer made the Sec. 172(b)(3) election without their knowledge did not justify its revocation.

May 1, 2019

Avoid tax traps with a timely appraisal

New basis-consistency requirements make defensible valuations even more important.

May 1, 2019

Bonus depreciation safe-harbor rules for vehicles issued

Rev. Proc. 2019-13 allows a deduction in succeeding years of excess unrecovered basis remaining after the Sec. 280F first-year limitation.

May 1, 2019

The meaning of qualified W-2 wages under Sec. 199A

Determine the best method for computing “total W-2 wages” for purposes of the Sec. 199A qualified business income deduction.

May 1, 2019

Optimizing residential real estate deductions

The new Sec. 199A safe harbor and tangible property regulations offer ways for landlords to reduce taxable income from rentals.

April 17, 2019

More proposed regs. on qualified opportunity funds issued

The regulations define the term “substantially all,” the definition of which was reserved in the earlier proposed regulations issued in October 2018.

April 17, 2019

Can a state tax a trust based on the beneficiary’s residency?

The U.S. Supreme Court heard oral arguments in a case that will decide whether states can tax trusts based solely on the fact that a trust beneficiary lives in the state.

April 11, 2019

Safe harbor issued for valuing pro sports trades

The IRS will permit professional sports teams that trade player contracts to recognize zero gain if both parties to the exchange adopt the safe harbor and do not exchange cash.