Qualified business income deduction regs. proposed
The IRS issued guidance on the new Sec. 199A deduction for qualified business income in the form of proposed regulations and a separate notice on how to calculate W-2 wages for those purposes.
Tax
Final regs. govern who can be a partnership representative
The IRS finalized proposed regulations under Sec. 6223 on the procedures for designating a partnership representative and the authority of the partnership representative under the centralized partnership audit regime.
Ninth Circuit withdraws Altera opinion
The order announcing the withdrawal says it is being done “to allow time for the reconstituted panel to confer on this appeal.”
IRS issues proposed regs. on 100% bonus depreciation
The IRS issued proposed regulations providing guidance on Sec. 168(k), which was amended by P.L. 115-97, known as the Tax Cuts and Jobs Act, to increase the allowable first-year depreciation deduction for qualified property from 50% to 100%.
Equitable recoupment doctrine applies to employment tax deposit
The taxpayer exercised ordinary business care, but its payroll taxes were applied to the EIN of a predecessor entity.
Proposed regs. address several transition tax issues
The IRS issued proposed regulations on the Sec. 965 transition tax that requires U.S. shareholders of deferred foreign income corporations to pay tax on post-1986 deferred income.
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.
IRS to clarify rules on payments in lieu of state and local taxes
The Service warns that a substance-over-form recharacterization may ensue.
2018 tax software survey: Individual product survey responses
Online-only: Contact information, basic packages and their features are shown below for the top seven products in the survey.
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.
PEO is statutory employer
The Tax Court allows a refund of overpaid Social Security taxes to professional employer organization Paychex.
Line items
Select Check is now Tax Exempt Organization Search ... New FASB and IFRS standards get method change procedure ... Rev. Proc. 2018-25 updates passenger auto depreciation, lessee income inclusion for TCJA
Volunteer board member of not-for-profit may assert reasonable cause for unpaid payroll taxes
A district court holds that reasonable cause remains an issue.
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.
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.
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.
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.
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.
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.
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.
