Tax news and information - Journal of Accountancy

TOPICS

August 1, 2018

IRS to clarify rules on payments in lieu of state and local taxes

The Service warns that a substance-over-form recharacterization may ensue.

August 1, 2018

SEPs: Simple but not always optimal

Simplified employee pension (SEP) plans can be attractive in the short term but over the long term can be expensive, inefficient, and inflexible.

August 1, 2018

Client communications protected by Sec. 7525

Knowing when this key protection does not apply is just as important for tax practitioners as knowing when it does.

August 1, 2018

PEO is statutory employer

The Tax Court allows a refund of overpaid Social Security taxes to professional employer organization Paychex.

July 30, 2018

Final rules govern adequate substantiation for charitable contributions

Final regulations address how taxpayers can comply with the requirements for adequate substantiation of charitable contributions of money or property.

July 25, 2018

Stock-based compensation cost-sharing regs. valid

The Ninth Circuit reversed a Tax Court decision invalidating a cost-sharing regulation that requires allocation of stock-based compensation costs between related parties.

July 17, 2018

States sue over state and local tax deduction cap

Four states have sued in U.S. district court, asking to invalidate the $10,000 limit on the deduction for state and local taxes enacted as part of last year’s tax overhaul.

July 17, 2018

Many tax-exempt organizations no longer need to list donor information

News IRS procedures eliminate the requirement for many exempt organizations to list certain substantial donors’ names and addresses on some forms.

July 12, 2018

AICPA: 2019 Form W-4 needs to be simplified

The AICPA’s Tax Executive Committee sent a letter to the IRS, urging the Service to simplify the proposed draft 2019 Form W-4, Employee’s Withholding Allowance Certificate.

July 10, 2018

Tax practitioners are warned to safeguard client data

The IRS warned that it is increasingly difficult for it to recognize fraudulent tax returns as cybercriminals succeed in getting more and more accurate information.

July 1, 2018

IRS guidance addresses limitations on business interest expense

Forthcoming regulations will cover consolidated groups and carryforward of pre-TCJA interest expense.

July 1, 2018

Claiming child tax benefits for noncustodial parents

IRS guidance on the waiver of a dependency exemption remains significant with the newly enhanced child tax credit.

July 1, 2018

Line items

HSA family coverage limit restored … Life settlement reporting delayed … Payroll tax credit for small business research activities clarified

July 1, 2018

Explaining refund payment delays to clients

PATH Act provisions and IRS security filters can often hold up the processing of legitimate refunds.

July 1, 2018

Analyzing the new personal casualty loss tax rules

Targeted relief is undercut by new statutory limitations included in the Tax Cuts and Jobs Act.

July 1, 2018

Charitable contribution deduction denied for conservation easement

The taxpayer expected a substantial benefit from the donation, the court holds.

July 1, 2018

IRS clarifies identity theft procedures

An affidavit is needed only when an unauthorized return has been filed using the taxpayer’s Social Security number.

July 1, 2018

First Circuit allows DISC dividends paid to Roth IRAs

The IRS suffers its second defeat when the First Circuit, agreeing with the Sixth Circuit, denies application of the substance-over-form doctrine to recharacterize DISC commissions and dividends as excess Roth contributions.

July 1, 2018

Levy on husband-and-wife LLC is upheld

Taxpayers’ claim they were a single-member limited liability company is belied by partnership returns, the Tax Court concludes.

June 27, 2018

Form 1040 to be shorter but with more schedules

The IRS is working on a draft version of the 2018 Form 1040, U.S. Individual Income Tax Return, that reduces the size of the form to two half-pages in length and eliminates more than 50 lines.

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