Underpayment penalty relief now automatic for eligible filers
Some taxpayers who paid 2018 underpayment penalties will receive refund checks because the penalties will be automatically waived for those who qualify, the IRS announced.
Tax
Alimony tax gap swells to $3.2 billion, TIGTA finds
Discrepancies between the amount of alimony deducted by payers and reported as income by its recipients increased by 38% in six years, the Treasury Inspector General for Tax Administration reported.
Rules proposed for classifying cloud and digital content transactions
The Internal Revenue Service proposed regulations to clarify how to classify transactions involving digital content and cloud computing.
IRS changes its third-party contact procedures
The IRS issued updated procedures for third-party contacts to reflect changes enacted in the recent Taxpayer First Act, requiring the IRS to notify taxpayers at least 45 days before it contacts a third party to determine or collect a tax.
Sales tax compliance post-Wayfair
The U.S. Supreme Court’s decision last year in South Dakota v. Wayfair prompted many states to enact new sales tax legislation or promulgate new regulations based on economic nexus. Find out how to help your clients comply.
State cash grants were nontaxable contributions to capital
New Jersey's payments to a corporate taxpayer were intended as an inducement to locate in the state.
Digital assets after death
Estate planning should account for a client’s digital assets, which often have significant financial or sentimental value.
IRS issues CPEO final regulations
The tax consequences under Sec. 3511 are spelled out for employee leasing and similar arrangements.
The QBI deduction for rental real estate activity
Optimal treatment under Sec. 199A eludes any one-size-fits-all solution.
Ninth Circuit holds common law mailbox rule inapplicable
IRS regulations permissibly established the exclusive means of proving timely filing, the appeals court holds.
Line items
LB&I launches data analytics compliance program ... Vehicle depreciation limits for 2019 ... HSA contribution limits for 2020
Taxpayers may revoke or make late bonus depreciation elections
The IRS will permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.
IRS permits certain partnerships to file superseding partnership returns
The IRS is permitting certain partnerships that timely filed their tax returns for the 2018 tax year an extension of time to file superseding returns and Schedules K-1 for their partners.
IRS alerts virtual currency owners of nonfiling consequences
The IRS has begun sending what it calls “educational letters” to taxpayers it has identified as not reporting virtual currency transactions or reporting them incorrectly.
Guidance adds preventive care items to high-deductible health plans
The IRS added 14 types of preventive care items that qualify to be provided under a high-deductible health plan to treat chronic medical conditions.
Final rules permit truncated TINs on W-2s
As part of its effort to reduce identity theft, the IRS issued final rules permitting employers to provide truncated taxpayer identification numbers on Forms W-2, Wage and Tax Statement, they provide to employees.
Congress approves IRS reform bill, drops Free File language
The bill establishes an independent appeals office and requires the IRS to develop a customer service strategy. A controversial provision codifying the Free File program was dropped from the bill.
W-2 wages and Sec. 199A
Finding the “sweet spot” to maximize the qualified business income deduction may involve adjusting a business’s workforce.
S corp. expenses not personally deductible by shareholder as a sole proprietor
A district court denies a taxpayer's refund claim.
Infographic: Mapping a path forward after Wayfair
CPAs should educate themselves and their clients on the current nexus standard for sales taxes.
