New Moving Expenses Regulations

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Moving Expense Reimbursements Incurred Before 2018 Are Excluded
Employer payments or reimbursements in 2018 for employees’ moving expenses incurred prior to 2018 are excluded from the employee’s wages for income and employment tax purposes. The Tax Cuts and Jobs Act of 2017 ( P.L. 115-97) suspended the exclusion from income for moving expenses reimbursed or paid by an employer for most employees starting in 2018, making these amounts taxable, except for amounts for active-duty members of the U.S. Armed Forces whose moves relate to a military-ordered permanent change of station.  

Due Diligence Requirements for Tax Preparers

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Due Diligence Requirements for Tax Preparers- The IRS has proposed amendments to the tax preparer due diligence regulations to reflect a recent law change. The Tax Cuts and Jobs Act ( P.L. 115-97) expanded the scope of the due diligence penalty to apply to tax preparers who fail to use due diligence when determining a client’s head of household status.  

Data Security Safeguards

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The IRS, along with Security Summit partners, offered important data security tips dubbed “Security Six”protections to help tax professionals protect their computers and email as well as safeguard sensitive taxpayer data. The “Security Six” protections is the second in a series called “Protect Your Clients; Protect Yourself: Tax Security 101.” All tax professionals, whether part of a large firm or a one-person shop, must enact data security safeguards.

Donor Information and Tax Returns

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Donor information is a prized asset for any not-for-profit organization. Tax-exempt organizations, other than charities exempt under Code Sec. 501(c)(3), will soon be able to stop reporting the names and addresses of contributors on Schedule B when filing their information returns. Organizations exempt from tax under Code Sec. 501(a) that are required to file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt from Income Tax, will still be required to collect and record this donor information, and make it available to the IRS upon request.

Ohio Income Tax Residency Test

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On June 14, 2018, Ohio Governor John Kasich signed legislation that amends the Ohio income tax residency test, which is effective for tax years beginning on or after January 1, 2018. In addition to the current law which states that an individual is not domiciled in Ohio if the individual has fewer than 213 contact periods in Ohio, the new legislation adds that the following requirements be met: The individual has an out-of-state residency for which the individual did not claim a depreciation deduction under IRC 167 on the individual’s federal income tax return;

Online Sales Tax Ruling

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On June 21, 2018, the U.S. Supreme Court (SCOTUS), in a 5-4 decision, ruled that the physical presence standard established in Quill v. North Dakota (1992) was “unsound and incorrect”, citing the current standard is antiquated and isn’t appropriate in today’s e-commerce economy. Prior to the South Dakota v. Wayfair decision, Quill required that remote sellers needed to have a physical presence in the state in order for them to be required to collect sales tax.

Procedures on Charitable Deductions and Exempt Status Combined and Updated

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IRS Issues New Procedures on Charitable Deductions The IRS has issued procedural guidance regarding charitable deductions and reliance on exempt status that simultaneously combines four existing procedural rulings and updates them for recent changes. As updated, the guidance reflects the transition from the use of IRS Pub. 78 in print to the searchable database, Tax Exempt Organization Search (TEOS). The list … Read More

Short-term, Limited Duration Insurance

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In response to President Trump’s Executive Order 13813, the Departments Health and Human Services, Labor and the Treasury (the Departments) are proposing regulations to expand the availability of short-term, limited-duration insurance by amending the definition of short-term, limited-duration insurance. This change is proposed to apply 60 days after publication of final regulations in the Federal Register.

New Withholding Calculator, W-4

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New Withholding Calculator, W-4 Released The IRS has released a new withholding calculator, as well as a new version of Form W-4, Employee’s Withholding Allowance Certificate. The new withholding calculator will let employees check that their income tax withholding is proper following passage of the Tax Cuts and Jobs Act (P.L. 115-95) The Tax Cuts Act made major tax law … Read More

New 501(c)(4) IRS Application Form

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IRS Issues New Form For Social Welfare Organization Applications The IRS has issued a new form to be used by organizations applying for tax-exempt status under Code Sec. 501(c)(4): Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code. Take away. Code Sec. 501(c)(4) describes certain civic leagues or organizations that operate exclusively to promote … Read More