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On Nov. 15, the IRS issued the 2019 annual inflation adjustments for many tax provisions as well as the 2019 tax rate tables for individuals and estates and trusts (Rev. Proc. 2018-57). These adjusted amounts will be used to prepare tax year 2019 returns in 2020. Many amounts are increasing for inflation in 2019. The …
Continue reading Inflation-adjusted items and tax tables for 2019 tax year are released
The IRS finalized regulations on Wednesday on the Sec. 965 transition tax, which was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. Sec. 965 applies to the last tax year of a deferred foreign income corporation (DFIC) that begins before Jan. 1, 2018. The Subpart F …
Continue reading Final regulations govern Sec. 965 transition tax
A new sales tax rule is being enacted in over half the states in the nation. This brief guide explains the basics of economic nexus laws, provides resources to help keep your company compliant and considers how the law may benefit local businesses. Just when you thought business taxes couldn’t get more complicated, an increasing …
Continue reading New Sales Tax Rules Affect Certain Small Businesses Across the U.S.
In IR-2018-190 and Notice 2018-75, the IRS announced that employer reimbursements made in 2018 of qualified moving expenses incurred prior to 2018 in connection with a move that occurred prior to Jan. 1, 2018, may be excluded from employees' wages and gross income despite the suspension of the exclusion for tax years 2018 through 2025 …
Responding to concerns that individual taxpayers may have found it difficult to correctly estimate their 2018 tax liability because of the many changes enacted in the law known as the Tax Cuts and Jobs Act, P.L. 115-97, the IRS issued relief from the penalty for underpayment of estimated income tax to individual taxpayers who have …
Continue reading Some individual taxpayers get relief from underpayment penalty
As the tax filing season approaches, there are steps you can take now to speed up the filing process. The faster your return is filed, the faster you get your refund. Even if you end up owing money to the IRS, knowing the amount due sooner gives you more time to come up with the …
The IRS issued guidance clarifying that taxpayers may generally continue to deduct 50% of the food and beverage expenses associated with operating their trade or business, despite changes to the meal and entertainment expense deduction under Sec. 274 made by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. According to …
Continue reading Meals continue to be deductible under IRS guidance
There are many factors that can cause an unfavorable tax swing leaving you with a surprising tax bill in the spring. Here are six warning signs that you might have some unexpected taxes waiting for you. You didn’t update your W-4 You may have noticed a change in your tax withholdings earlier this year. These …
The IRS continues to focus their audit activities in key small business areas. The wise business owner is well advised to be able to defend the following five areas to keep the IRS at a comfortable distance: Business or hobby? Be ready to provide proof your business is truly a business and not a hobby. …
Continue reading The IRS Loves Your Business … and That is NOT Good
The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after increasing slightly last year, the IRS announced Friday (Notice 2019-2). For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents per mile …
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