Am I Having Enough Tax Withheld?

If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may [...]

By |2020-03-06T18:50:17+00:00October 4th, 2019|Financial, Tax|Comments Off on Am I Having Enough Tax Withheld?

Senate Tax Writers Discuss Bipartisan Retirement Savings Bills

...Related House Vote Expected Soon Senate tax writers on Capitol Hill continue to discuss bipartisan retirement savings bills as the House gears up for a vote on a related tax measure. The Senate Finance Committee (SFC) held a May 14 hearing during which lawmakers on both sides of the aisle highlighted the importance of moving [...]

By |2020-03-06T18:50:17+00:00July 2nd, 2019|Financial, Governments, Tax|Comments Off on Senate Tax Writers Discuss Bipartisan Retirement Savings Bills

Reliance Regs Address Qualified Opportunity Funds and Zones

Proposed regulations address gains that may be deferred when taxpayers invest in a qualified opportunity fund (QOF). Taxpayers may generally rely on these new proposed regulations. The IRS has also requested comments. The proposed regulations also withdraw and replace placeholder provisions in an earlier set of proposed regulations ( REG-115420-18). These concern: the definition of [...]

By |2020-03-06T18:50:17+00:00May 24th, 2019|Accounting, Financial, Tax|Comments Off on Reliance Regs Address Qualified Opportunity Funds and Zones

House Approves Bipartisan IRS Reform Bill

The House on April 9 approved by voice vote a bipartisan, bicameral IRS reform bill. The IRS bill, which now heads to the Senate, would redesign the IRS for the first time in over 20 years. IRS Reform The Taxpayer First Act of 2019 (HR 1957), as amended, cleared the House Ways and Means Committee [...]

By |2020-03-06T18:50:17+00:00May 4th, 2019|Financial, Tax|Comments Off on House Approves Bipartisan IRS Reform Bill

IRS Clarifies Treatment of Refunds with New SALT Limits

The IRS has provided four examples of the interaction of the new limit on the deduction on state and local taxes (SALT) under Code Sec. 164(b)(6) with the tax benefit rule for refunds under Code Sec. 111. A taxpayer who is impacted by the SALT limit may not be required to include any refund in [...]

By |2019-05-24T18:23:46+00:00April 24th, 2019|Financial, Tax|Comments Off on IRS Clarifies Treatment of Refunds with New SALT Limits

IRS Ruling Requests, Technical Advice, and No-Rule Procedures

The IRS has issued its annual revisions to the general procedures for ruling requests, technical memoranda, determination letters, and user fees, as well as areas on which the Associate Chief Counsel offices will not rule. The revised procedures are generally effective January 2, 2019. Rev. Proc. 2019-1 This procedure explains how the IRS provides advice [...]

By |2020-03-06T18:50:17+00:00March 4th, 2019|Financial, Governments, Tax|Comments Off on IRS Ruling Requests, Technical Advice, and No-Rule Procedures

Business Safe Harbors Provided in Exchange for SALT Credits

The IRS has provided safe harbors for business entities to deduct certain payments made to a charitable organization in exchange for a state or local tax (SALT) credit. A business entity may deduct the payments as an ordinary and necessary business expenses under Code Sec. 162 if made for a business purpose. Proposed regulations that [...]

By |2020-03-06T18:50:18+00:00February 22nd, 2019|Financial, Tax|Comments Off on Business Safe Harbors Provided in Exchange for SALT Credits

Guidance for Excise Tax on Excess Remuneration and Parachute Payments

The IRS has issued interim guidance on the excise tax payable by exempt organizations on remuneration in excess of $1 million and any excess parachute payments made to certain highly compensated current and former employees in the tax year. The excise tax imposed by Code Sec. 4960 is equal to the maximum corporate tax rate [...]

By |2019-02-12T16:16:04+00:00February 16th, 2019|Financial, Tax|Comments Off on Guidance for Excise Tax on Excess Remuneration and Parachute Payments

IRS Released Standard Mileage Rates for 2019

The IRS released the optional standard mileage rates for 2019. Most taxpayers may use these rates to compute deductible costs of operating vehicles for: business, medical, and charitable purposes. Some members of the military may also use these rates to compute their moving expense deductions. 2019 Standard Mileage Rates The standard mileage rates for 2019 [...]

By |2020-03-06T18:50:18+00:00January 18th, 2019|Financial, Governments, Tax|Comments Off on IRS Released Standard Mileage Rates for 2019

Deductions Denied to Medical Marijuana Dispensary

A nonprofit corporation that operated a medical-marijuana dispensary legally under California law was not allowed to claim deductions for business expenses on its federal return. Code Sec. 280E, which prevents any trade or business that consists of trafficking in controlled substances from deducting any business expenses, applied. Meaning of "Consists of" The corporation argued that [...]

By |2020-03-06T18:50:18+00:00January 15th, 2019|Financial, Governments, Tax|Comments Off on Deductions Denied to Medical Marijuana Dispensary
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