TAX NEWS & ALERTS

Tax News & Alerts

  • Business Tax Implications of Divorce

    Business Tax Implications of Divorce

    If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and your marital property will include all or part of it.  Read More »
  • Gift Tax Return

    Gift Tax Return

    Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required.Read More »
  • Pet Trusts and Your Will 

    Pet Trusts and Your Will 

    An unexpected outcome of the recent death of designer Karl Lagerfeld is that the topic of estate planning for pets has been highlighted. Lagerfeld’s beloved cat, Choupette, played a major role in his brand. The feline was the subject of a coffee table book and has a large Instagram following. Before his death, Lagerfeld publicly expressed his wishes to have his ashes, and those of his cat if she had died before him, to be scattered with those of his mother’s. It’s unknown if Lagerfeld accounted for his beloved Choupette in his estate plan, but one vehicle he could have used to do so is a pet trust.   Read More »
  • D&O Insurance

    D&O Insurance

    Directors and officers (D&O) liability insurance enables board members to make decisions without fear that they’ll be personally responsible for any related litigation costs. Such coverage is common in the business world, but fewer not-for-profits carry it. Nonprofits may assume that their charitable mission and the good intentions of volunteer board members protect them from litigation. These assumptions can be wrong.  Read More »
  • Vehicle Expense Deductions

    Vehicle Expense Deductions

    It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return.  For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles are deductible only in much more limited circumstances. TCJA changes could also affect your tax benefit from medical and charitable miles.   Read More »
  • Are Your Employees Ignoring Their 401(k)s?

    Are Your Employees Ignoring Their 401(k)s?

    For many businesses, offering employees a 401(k) plan is no longer an option — it’s a competitive necessity. But employees often grow so accustomed to having a 401(k) that they don’t pay much attention to it. It’s in your best interest as a business owner to buck this trend. Keeping your employees engaged with their 401(k)s will increase the likelihood that they’ll appreciate this benefit and get the most from it. In turn, they’ll value you more as an employer, which can pay dividends in productivity and retention.  Read More »
  • Your Charitable Donations And Tax Deductions

    Your Charitable Donations And Tax Deductions

    There’s Still time to get substantiation for 2018 donations - If you’re like many Americans, letters from your favorite charities have been appearing in your mailbox in recent weeks acknowledging your 2018 year-end donations. But what happens if you haven’t received such a letter — can you still claim an itemized deduction for the gift on your 2018 income tax return? It depends.  Read More »
  • QBI Deductions

    QBI Deductions

    As part of the recently issued Sec. 199A QBI deduction regulations, the IRS issued guidance for certain real estate businesses. It allows individuals and entities who own rental real estate directly or through a disregarded entity to treat a rental real estate enterprise as a trade or business (for purposes of the QBI deduction) if certain requirements are met.  Read More »
  • Tax Extenders

    Tax Extenders

    No action is likely to be taken on tax “extenders” for now. Extenders are tax provisions that the U.S. Congress periodically considers for renewal. Prior to the end of the 115th Congress, there was guarded optimism that a bill would be passed before filing season began to extend provisions that expired.  Read More »
  • 100 Percent Depreciation Deduction

    100 Percent Depreciation Deduction

    Proposed Rules Address 100-Percent Depreciation Deduction - Proposed regulations address the new 100-percent depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service. Background The Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97) amended Code Sec. 168(k) to increase the percentage of the additional first year depreciation deduction from 50 percent to 100 percent for property acquired after September 27, 2017. It also expanded the property eligible for the additional first year depreciation to include certain used depreciable property and certain film, television, or live theatrical productions.Read More »
  • SALT Credit Deduction Limit

    SALT Credit Deduction Limit

    Proposed Regs. Limit Charitable Contributions Made to Avoid SALT Credit Deduction Limit An individual, estate, and trust generally must reduce the amount of any charitable contribution deduction by the amount of any state and local tax credit, or SALT credit, he or she receives or expects to the receive for the transfer under proposed regulations. The rules will blunt attempts by state and local governments to get around the new SALT credit deduction dollar limits.  Read More »
  • New Moving Expenses Regulations

    New Moving Expenses Regulations

    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.  Read More »
  • Due Diligence Requirements for Tax Preparers

    Due Diligence Requirements for Tax Preparers

    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.  Read More »
  • 199A Pass Through Deduction

    199A Pass Through Deduction

    The IRS has released long-awaited guidance on new Code Sec. 199A, commonly known as the "pass-through deduction" or the "qualified business income deduction." Taxpayers can rely on the proposed regulations and a proposed revenue procedure until they are issued as final. Code Sec. 199A allows business owners to deduct up to 20 percent of their qualified business income (QBI) from sole proprietorships, partnerships, trusts, and S corporations. The deduction is one of the most high-profile pieces of the Tax Cuts and Jobs Act (P.L. 115-97).  Read More »
  • Pass-Through Deduction

    Pass-Through Deduction

    The IRS’s proposed pass-through deduction regulations are generating mixed reactions on Capitol Hill. The 184-page proposed regulations, REG-107892-18, aim to clarify certain complexities of the new, yet temporary, Code Sec. 199A deduction of up to 20 percent of income for pass-through entities. The new deduction was enacted through 2025 under the Tax Cuts and Jobs Act (TCJA), ( P.L. 115-97). The pass-through deduction has remained one of the most controversial provisions of last year’s tax reform.  Read More »
  • Data Security Safeguards

    Data Security Safeguards

    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.Read More »
  • Donor Information and Tax Returns

    Donor Information and Tax Returns

    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.Read More »
  • Ohio Income Tax Residency Test

    Ohio Income Tax Residency Test

    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;Read More »
  • Online Sales Tax Ruling

    Online Sales Tax Ruling

    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.Read More »
  • Procedures on Charitable Deductions and Exempt Status Combined and Updated

    Procedures on Charitable Deductions and Exempt Status Combined and Updated

    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 MoreRead More »
  • Life Insurance Transfer Transition Guidance Planned

    Life Insurance Transfer Transition Guidance Planned

    Updates to life insurance transfer policies proposed The IRS intends to provide guidance on the new information reporting obligations for certain life insurance contract transactions under Code Sec. 6050Y. The proposed regulations will provide guidance on the modifications to the transfer for valuable consideration rules for life insurance contracts under Code Sec. 101(a). In addition, the IRS has delayed the reporting requirements ... Read MoreRead More »
  • Short-term, Limited Duration Insurance

    Short-term, Limited Duration Insurance

    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.Read More »
  • New Withholding Calculator, W-4

    New Withholding Calculator, W-4

    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 MoreRead More »
  • New 501(c)(4) IRS Application Form

    New 501(c)(4) IRS Application Form

    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 MoreRead More »
  • Adequate Disclosure Guidance

    Adequate Disclosure Guidance

    IRS Updates Adequate Disclosure Guidance The IRS has updated guidance on how to make an adequate disclosure on an income tax return for purposes of reducing or eliminating a substantial understatement penalty and/or an unreasonable position return preparer penalty. This latest update applies to tax years beginning in 2017 and returns filed on 2017 tax forms, as well as to ... Read MoreRead More »
  • New Social Welfare Organization Form

    New Social Welfare Organization Form

    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.Read More »
  • Deducting Holiday Gifts

    Deducting Holiday Gifts

    Holiday gifts made to customers are generally deductible as ordinary and necessary business expenses as long as the taxpayer can demonstrate that such gifts maintain or improve customer goodwill. Such gifts must bear a direct relationship to the taxpayer's business and must be made with a reasonable expectation of a financial return commensurate with the amount of the gift...Read More »
  • Tax Reform

    Tax Reform

    Tax writers in Congress are set to begin debating and writing tax reform legislation. On September 27, the White House and GOP leaders in Congress released a framework for tax reform. The framework sets out broad principles for tax reform, leaving the details to the two tax-writing committees: The House Ways and Means Committee and the Senate Finance Committee. How quickly lawmakers will write and pass tax legislation is unclear...Read More »
  • 2018 Inflation Adjusted Tax Amounts

    2018 Inflation Adjusted Tax Amounts

    The Tax Code requires that federal income tax brackets and certain other figures be adjusted for inflation annually. Wolters Kluwer has projected the 2018 standard deduction, tax bracket amounts and other inflation-adjusted tax figures based on the relevant inflation data just released by the U.S. Department of Labor (DOL)...Read More »
  • Payroll Credit for Research Activities

    Payroll Credit for Research Activities

    IRS Chief Counsel, in generic legal advice (AM-2017-003), recently described when a qualified employer may take into account the payroll tax credit for increasing research activities. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) created the payroll credit aimed at start-ups with little or no income tax liabilities...Read More »