Updated IRS Mileage Rate Guidance Reflects the TCJA’s Elimination of Miscellaneous Itemized Deductions

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On May 25, 2018, The Internal Revenue Service issued Notice 2018-42, which has updated the earlier released Notice 2018-3, to reflect changes to the tax law made by the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017. Changes impacting the earlier Notice include: the suspension of the deduction for un-reimbursed employee […]

IRS to Answer State Strategies to Avoid SALT Deduction Limits Imposed Under the TCJA

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The U.S. Department of the Treasury and the Internal Revenue Service issued Notice 2018-54 advising taxpayers that  proposed regulations will be issued addressing the deductibility of state and local tax payments for federal income tax purposes under the recent tax reform legislation. Section 11042 of the Tax Cuts and Jobs Act (TCJA), which was enacted […]

PA Clarifies Guidance on Corporate Income Tax NOL Deductions

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On May 10, 2018, the Pennsylvania Department of Revenue issued new guidance stating that a corporate taxpayer can calculate its 2007 through 2016 net operating loss (NOL) using the greater of: the flat dollar cap; or the percentage cap. For tax years before 2007, Pennsylvania applies the flat dollar cap. The turnabout in the Commonwealth’s […]

Additional IRS Guidance Expected on the New Sec. 199A Qualified Business Income Deduction

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The Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, included a new deduction for 20% of qualified business income passing through to equity owners from enterprises electing to be taxed as pass-through businesses (i.e., S corporations, partnerships and sole proprietorships). Under the new tax reform provisions, non-corporate taxpayers may deduct up to […]

IRS Takes No Bull on Hobby Loss Rules

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The Internal Revenue Service regularly challenges businesses that are found to generate losses and do not have a profit intent. The specific statute that governs these challenges are known as the “Hobby Loss Rules.” In such challenges, the Internal Revenue Service is trying to prove that the undertaking which has resulted in losses over a […]

IRS Offers Automatic Consent Procedure to Change Accounting Methods

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The Internal Revenue Service issued Rev. Proc. 2018-29 to provide an automatic consent procedure for taxpayers changing to a new accounting method under new standards issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) for recognizing revenue from customer contracts. This revenue procedure takes into account concerns and suggestions offered […]

Texas Offers Tax Amnesty Program

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The Office of the Texas Comptroller has announced a tax amnesty program which will run from May 1, 2018 through June 29, 2018.  The amnesty program will provide delinquent taxpayers with relief from penalties and interest on tax due and applies to periods due before January 1, 2018.  By participating in the program, a taxpayer […]