Tax News & Opinion

Read latest tax related or accounting news. We have gathered together some of the best tax news from trusted sources and made it easier for you keep up to date the latest events in tax world.

State tax law cannot discriminate against federal pensioners, Supreme Court holds

February 20, 2019

The state of West Virginia cannot provide a tax exemption to state law enforcement retirees while denying that exemption to federal law enforcement retirees who performed similar jobs, the Supreme Court held on Wednesday (Dawson v. Steager, No. 17-419 (U.S. 2/20/19)). West Virginia exempts the pens...

Taxpayers will file QBI deduction computation with IRS next year

February 15, 2019

The IRS on Friday posted a draft of a form that affected taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A. Taxpayers who have QBI, qualified real estate investment trust (REIT) dividends, or qualified income f...

Bonus depreciation safe-harbor rules for vehicles issued

February 13, 2019

The IRS on Wednesday provided a safe-harbor method to determine depreciation deductions for passenger automobiles that qualify for the 100% additional first-year depreciation deduction and that are subject to the depreciation limitations for passenger automobiles under Sec. 280F (Rev. Proc. 2019-13)...

Identity protection PIN program expands

February 08, 2019

The IRS is expanding to seven additional states its voluntary program for taxpayers who wish to obtain identity protection personal identification numbers (IP PINs) and are not currently victims of tax return identity theft. The pilot program originally involved Washington, D.C., Florida, and Georgi...

IRS issues updates on post-shutdown activities

January 30, 2019

Taxpayers and tax practitioners received guidance from the IRS on what to expect in the areas of audits, collections, tax return processing, and Tax Court operations now that the government shutdown has concluded. The IRS explained on its website that IRS employees returned to work on Jan. 28 and ar...

Government shutdown ends in time for tax season

January 28, 2019

The partial government shutdown ended on Friday, allowing the full IRS workforce to return to work on Monday, Jan. 28 — the start of tax filing season for individuals. The Further Additional Continuing Appropriations Act, 2019, H.J. Res. 28, passed by Congress and signed by President Donald Tr...

Paid preparer’s checklist expands to include head-of-household, other tax credit questions

January 23, 2019

The IRS expanded Form 8867, Paid Preparer’s Due Diligence Checklist, for 2018 individual income tax returns to include questions for both head-of-household filing status and the credit for other dependents. For 2017 tax returns this form needed to be included by the preparer on any Form 1040, ...

Qualified business income deduction regs. and other guidance issued

January 22, 2019

On Friday, the IRS released guidance on a large number of Sec. 199A issues, including the eagerly awaited final Sec. 199A regulations (in an as-yet-unnumbered Treasury decision). The IRS also issued new proposed regulations on how to treat previously suspended losses and how to determine the deducti...

Some individual taxpayers get relief from underpayment penalty

January 17, 2019

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 ...

Final regulations govern Sec. 965 transition tax

January 16, 2019

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 inco...

Half of IRS employees to be recalled during tax season

January 15, 2019

Under an updated contingency plan covering the upcoming filing season, the IRS will recall 57% of its workforce to handle tax season duties, the agency reported Tuesday. Temporary funding for the IRS for fiscal year 2019 expired at midnight on Dec. 21. Since then, the IRS has been operating under a...

IRS announces Free File launch

January 11, 2019

On Friday, the IRS announced the opening of its Free File program, which provides free electronic filing to qualifying taxpayers, generally those who earned $66,000 or less last year. The program is opening before the regular filing season, which will begin Jan. 28, and is available only through the...

IRS sets start date for tax season, will issue refunds during government shutdown

January 07, 2019

IRS sets start date for tax season, will issue refunds during government shutdown By Alistair M. Nevius Related TOPICS IRS Practice & Procedure The IRS announced on Monday evening that it is prepared to start ...

Sec. 199A: Questions and answers

December 20, 2018

The passage of the tax reform law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, has created many questions for CPAs and their clients, but the IRS has now started to release guidance on key issues. For instance, over the summer of 2018 the IRS provided eagerly anticipated guidance on the n...

Government shutdown would halt many IRS operations

December 19, 2018

Funding for many government agencies is scheduled to expire at midnight on Friday, which would trigger a partial shutdown of the federal government. The IRS is affected by the possible shutdown because it is not already funded through September 2019. Temporary funding for the IRS was enacted in the ...

2019 standard mileage rates announced

December 14, 2018

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...

Proposed regs. govern tax on base-erosion payments

December 14, 2018

The IRS has proposed regulations on the Sec. 59A base-erosion anti-abuse tax (BEAT), added by the law known as the Tax Cuts and Jobs Act, P.L. 115-97 (REG-104259-18). The proposed regulations provide guidance regarding the BEAT, which is imposed on base-erosion payments of taxpayers with substantial...

IRS explains disallowance of qualified transportation fringe benefits for parking

December 11, 2018

In Notice 2018-99, the IRS, responding to questions from taxpayers, provided guidance about how to determine the amount of parking expenses that is nondeductible when employers provide parking for their employees. Under Sec. 274(a)(4), expenses incurred for providing parking to employees that are Se...

Initial guidance issued on Sec. 83(i) deferral election for private company equity grants

December 07, 2018

In response to requests from taxpayers and employers, the IRS issued Notice 2018-97 on Friday to provide initial guidance on new Sec. 83(i), which was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. New Sec. 83(i) permits eligible private company employees to elect to d...

Accounting method change procedures for book-tax conformity rule

November 30, 2018

The IRS has provided procedures (Rev. Proc. 2018-60) under which a taxpayer may obtain automatic consent to change a method of accounting to comply with Sec. 451(b), as amended by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. The revenue procedure also gives certain qualifying taxpayers w...