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.

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...

Proposed foreign tax credit regulations issued

November 29, 2018

The IRS on Thursday proposed rules for the allocation and apportionment of expenses for purposes of determining the limitation on the foreign tax credit to reflect changes to the law made by the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (REG-105600-18). The Sec. 901 foreign tax credit allows U.S. ta...

IRS issues guidance on withholding for 2019

November 27, 2018

The IRS on Tuesday said that the withholding rules in effect for 2018 will remain in effect for 2019. In September, the IRS announced that the 2019 version of Form W-4, Employee’s Withholding Allowance Certificate, will be similar to the 2018 version. The IRS issued a draft W-4 form and instru...

Proposed regs. outline new business interest expense limitation

November 27, 2018

In REG-106089-18, the IRS proposed rules that would govern the new business interest limit in Sec. 163(j), as amended by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. The IRS also asked for comments on all aspects of the proposed regulations by 60 days after they are published in t...

Estate and gift exclusion clawback addressed in proposed regs.

November 21, 2018

In proposed regulations issued Wednesday (REG-106706-18), the IRS addressed issues and made conforming revisions arising from the temporary increase in basic exclusion amount for estate and gift tax enacted by legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. For gifts made and es...

UNICAP rules on negative adjustments finalized

November 19, 2018

The IRS on Monday issued final regulations (T.D. 9843) that amend the uniform capitalization (UNICAP) rules under Sec. 263A. The IRS also updated the procedures by which taxpayers can get automatic consent to change their methods of accounting to reflect the new regulations (Rev. Proc. 2018-56). UN...

Inflation adjustments and tax tables issued for 2019

November 15, 2018

The IRS on Thursday 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 inf...

New IRS commissioner brings practitioner’s perspective to role

November 13, 2018

As the IRS’s new top administrator, Charles Rettig will focus on maintaining and building ties with practitioners, he told CPAs at the AICPA National Tax Conference in Washington on Tuesday. After all, until Rettig’s swearing-in as the Service’s 49th commissioner on Oct. 1, he was...

Social Security wage base set for 2019

November 06, 2018

Social Security wage base set for 2019 By Sally P. Schreiber, J.D. Related TOPICS The Social Security Administration (SSA) announced that the maximum amount of wages subject to the old age, survivors, and disabil...

Tax preparer due diligence rules are finalized

November 06, 2018

The IRS on Tuesday finalized proposed regulations under Sec. 6695(g) imposing a penalty on tax return preparers who do not follow certain due-diligence requirements when preparing to file returns for taxpayers who are claiming head-of-household filing status, the earned income tax credit (EITC), the...

Inflation adjustments issued for qualified retirement plans

November 01, 2018

The IRS said that the limit on elective deferral contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will increase from $18,500 in 2018 to $19,000 in 2019. However, the catch-up contribution limit for those 50 and older remains $6,000 (...

Proposed rules would exempt corporate US shareholders from Sec. 956

October 31, 2018

The IRS issued proposed regulations (REG-114540-18) on Wednesday providing that Sec. 956, which requires an income inclusion by U.S. shareholders of controlled foreign corporations (CFCs) that invest in U.S. property, should not apply to corporate shareholders. Under the participation exemption sys...

Health reimbursement arrangement rules are issued in proposed form

October 25, 2018

In REG-136724-17, the Departments of the Treasury, Labor, and Health and Human Services issued proposed regulations on health reimbursement arrangements (HRAs), which were originally penalized under the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, but were later restored by the ...

Association addresses digital economy tax issues

October 23, 2018

Cross-border taxation of digital transactions presents many challenges to countries and multinational companies. Some countries have acted unilaterally to impose digital taxes, while international organizations have been working to develop multinational approaches. Given the nature of the challenges...

How the suspension of personal exemptions affects health-care-related provisions

October 18, 2018

NewsIndividuals How the suspension of personal exemptions affects health-care-related provisions By Sally P. Schreiber, J.D. Related ...

Proposed regs. reflect amendments to all-events test and advance payments

October 12, 2018

NewsTAX ACCOUNTING Proposed regs. reflect amendments to all-events test and advance payments By Sally P. Schreiber, J.D. Related ...