Thanks to the Tax Cuts and Jobs Act (TCJA), enacted on December 22, 2017, small businesses with average annual gross receipts of $25 million or less in the prior three-year period may use the cash method of accounting. Also, these businesses are exempt from certain accounting rules for inventories, cost capitalization, and long-term contracts as […]
IRS Reiterates Its “Prepaid Property Tax” Position for NJ Under the Tax Cuts and Jobs Act (TCJA), enacted on December 22, 2017, a taxpayer’s itemized deduction for state and local taxes for the tax years 2018-2025 is limited to $10,000 ($5,000 for married filing separately) per year. This new limitation was particularly burdensome for taxpayers […]
The IRS recently released a “draft” form of the 2018 federal Form 1040. The newly proposed “postcard” form has just 23 lines, cut down from 79 lines on the 2017 Form 1040. In conjunction with the attempt at simplification, the Forms 1040A and 1040EZ have also been eliminated. However, most of the available deductions and […]
Advanced technology has enabled the IRS to conduct more audits, and taxpayers should be ready. Read more in the Summer 2018 GYF Perspectives.
Since the Tax Cuts & Jobs Act passed in December 2017, the IRS has issued numerous clarifications and updates on the provisions of the tax reform legislation. This article lists the areas of focus and future IRS priorities. Read the article from the Summer 2018 GYF Perspectives.
The Internal Revenue Service (IRS) continues to provide guidance on the implementation of certain provisions within the Tax Cuts and Jobs Act. Nowhere is this guidance more prolific, and more welcome, than in the international tax provisions of the Act. This week, in News Release IR 2018-131, the IRS has announced that it will waive […]
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 […]
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 […]
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 […]
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 […]