According to Bloomberg News, millionaires could see much bigger tax bills if Democrat Joe Biden is elected president in November, but levies on most households below the top income brackets would stay about the same as under President Donald Trump, an outside analysis shows. Biden’s tax proposals would have the top 0.1% of earners -- those currently … Continue reading Bloomberg News: Millionaires Would Pay Up Under Biden Tax Plans, Study Shows (Sept. 14, 2020)
The IRS and Treasury has issued final regs under Code Secs. 245A and 954. The final regs do the following: Limit the deduction for certain dividends received by US persons from foreign corporations under Code Sec. 245A; andLimit the exception to subpart F income under Code Sec. 954(c)(6) for certain dividends received by controlled foreign … Continue reading Treasury Decision 9909 – Limitation on Deduction for Dividends Received from Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
R&D tax credits: A valuable cash infusion for businesses By Karen J. Koch, CPA In these uncertain economic times when almost every business is struggling, it's time to take another look at these beneficial credits, which many businesses may not realize they can take. AICPA continues to ask Congress to include PPP deductibility in upcoming … Continue reading AICPA Tax Insider (Aug. 13, 2020): AICPA Asks for PPP Deducibility; Professional Responsibility in Virtual Age; and More!
Bloomberg Tax has released a free report comparing Trump and Biden's tax plans, side by side. The summary is below: The question of who will become president poses a lot of “what ifs” for tax professionals and their clients. This complimentary report, Trump, Biden Tax Plan Comparison, will help you take the guesswork out of your … Continue reading Bloomberg Tax: Trump’s and Biden’s tax plans – side by side (Aug. 11, 2020)
The IRS Large Business and International (LB&I) has issued a new Practice Unit, Receipt of Dividends or Interest from a Related CFC. Practice Units provide IRS staff with explanations of general tax concepts, as well as information on specific types of transactions. Practice Units are not official pronouncements of law or directives and cannot be … Continue reading IRS Tax Practice Unit: Receipt of Dividends or Interest from a Related CFC (July 29, 2020)
Update on COVID-19 Pandemic Tax Relief and Planning Opportunities The COVID-19 pandemic and accompanying economic downturn continues to create unprecedented challenges for individual and business taxpayers. Federal and state governments are contending with significant budget deficits but have successfully enacted several tax relief measures including increased flexibility, additional time to meet tax obligations, and relief … Continue reading Anderson Tax Q2 2020 Newsletter
The IRS, in IR-2020-168, reminded businesses required to file reports of large cash transactions that e-filing is a fast, easy and secure option for filing their reports. Now, businesses can batch file their reports, which is especially helpful to those required to file many forms. Although businesses have the option of filing Form 8300, Report of … Continue reading IRS FS-2020-11: IRS Reminds Businesses Must Report Large Cash Transactions (July 2020)
An update on like-kind exchanges By Greg Bryant Recently issued proposed regulations, which permit the exchange of personal property when it is incidental to the exchange of real property, are generally good news for property owners with plans to make Sec. 1031 exchanges. Understanding the employee retention tax credit The main guidance about the new … Continue reading AICPA Tax Insider (July 23, 2020): Like Kind Exchanges, Reinstated PTIN User Fees, New Form 1065 (Partnership Tax Form) and More!
With cyberthieves active during COVID-19, the Internal Revenue Service and the Security Summit partners today urged tax professionals to review critical security steps to ensure they are fully protecting client data whether working in the office or a remote location. Many tax professionals have expanded telework options this year as firms, like other businesses, work to keep … Continue reading IRS Tax Tip: Working Virtually: Protect tax data at home and at work with the “Security Six;” Part 1 of Security Summit tips for tax professionals (July 21, 2020)
Professors Lily L. Batchelder (NYU) & David Kamin (NYU) have made available their article, Policy Options for Taxing the Rich, published by the Aspen Institute (2019). The Abstract is as follows: The U.S. economy exhibits high inequality and low economic mobility across generations relative to other high-income countries. The United States will need to raise … Continue reading Lily L. Batchelder, David Kamin: Policy Options for Taxing the Rich, Aspen Institute (2019)
Former kiddie tax rules restored By Kate Mantzke, CPA, Ph.D.; Brad Cripe, CPA, Ph.D.; and Suzanne Youngberg, CPA Congress reversed the kiddie tax changes enacted in the TCJA, permitting taxpayers to choose which rules apply in 2018 and 2019 and possibly file amended returns. 2020 depreciation limits for cars and trucks are issued The IRS … Continue reading AICPA Tax Insider (June 16, 2020): Kiddie Tax Rules Restored; 2020 Auto Depreciation Limits Issued; Final GILTI and FDII Regs Finalized; and More!
In a memo to IRS employees, the IRS has extended, through December 31, 2020, the period during which it will accept digital signatures and emailed documents. See full memo by clicking IRS Memo NHQ-01-0620-0002: IRS Extends Acceptance of Digital Signatures and Emailed Documents.
The IRS reminds taxpayers who took advantage of the People First Initiative tax relief and did not make previously owed tax payments between March 25 to July 15 that they need to restart their payments. As the IRS continues to reopen its operations across the country, taxpayers who were in payment agreements and skipped any … Continue reading IRS IR-2020-142: Taxpayers need to resume payments by July 15
In IRS Memorandum 20202501F (June 19, 2020), IRS Chief Counsel concluded that the IRS can’t audit two net operating loss (NOL) carryforwards from previously audited tax years where the IRS had previously disallowed the NOLs, but, after the taxpayer protested, the IRS Office of Appeals (Appeals) allowed the NOLs. To see IRS Memorandum 20202501F (June … Continue reading IRS Memorandum 20202501F (June 19, 2020): NOL Carryforward Audit in taxable year for issue previously audited in taxable year not allowed
Quiz: Like-kind exchanges By James A. Beavers, CPA, CGMA, J.D., LL.M. Find out how much you know about this useful tax deferral tool. Rollover relief for required minimum distributions The IRS provides relief for taxpayers who had already taken required minimum distributions (RMDs) before the CARES Act suspended the RMD requirement for 2020 in response … Continue reading AICPA Tax Insider (July 2, 2020): Like Kind Exchange Quiz; Rollover Relief for RMDs; July 15, 2020 is final tax deadline and more
New tax incentive for employers to help with student loans By Dave Strausfeld, J.D. Employers can make tax-free contributions in 2020 to help employees with their student loan payments, under a provision in the CARES Act. Here's how. IRS permits remote signatures for plan loan consents In another response to the COVID-19 pandemic, the IRS … Continue reading AICPA Tax Insider (June 11, 2020): student loan tax incentives; remote signatures; Notice 2020-23; and more
Treasury and the IRS have published a correcting amendment to final regulations related to foreign partners for effectively connected taxable income on June 11, 2020. The summary for the amendment is as follows: This document contains corrections to Treasury Decision 9394, which was published in the Federal Register on Tuesday, April 29, 2008. Treasury Decision 9394 contained … Continue reading TD 9394: Correcting amendment to final regulations: Withholding related to foreign partners for effectively connected taxable income (June 11, 2020).
Rev. Proc. 2020-15, included in Internal Revenue Bulletin 2020-23 (June 1, 2020), updates prior IRS guidance regarding the list of countries with which the United States has in force an information exchange agreement for purposes of reporting payments of deposit interest of $10 or more made by U.S. financial institutions to nonresident alien individuals. See … Continue reading Rev.Proc. 2020-15: Updated list of countries, deposit interest paid to nonresident aliens
The IRS reminded taxpayers to guard against tax fraud and other related financial scams related to COVID-19. In the last few months, the IRS Criminal Investigation division (CI) has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement … Continue reading IRS Urges Taxpayers to Remain Vigilant Against Coronavirus-Related Tax Fraud (IR-2020-115),(Jun. 9, 2020)
E-filing of Form 1040-X coming this summer The IRS announced that taxpayers will be able to electronically file Forms 1040-X, Amended U.S. Individual Income Tax Return, later this summer. Tax rules for real estate professionals By Barbara Bryniarski Determining whether a taxpayer involved in real estate activities qualifies as a real estate professional establishes whether the … Continue reading AICPA Tax Insider (June 4, 2020): Tax Rules for Real Estate Professionals; Exempt Org Reporting Regs Finalized; Electronic Amended Returns and More