Deductibility of Business Meals after the Tax Cuts and Jobs Act

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As we have posted previously, the Tax Cuts and Jobs Act (TCJA) made changes to the business expense deduction for meals and entertainment. The TCJA disallowed the deduction for expenses related to activities generally considered to be entertainment, amusement or recreation, that were incurred in years beginning after December 31, 2017. However, in most cases, taxpayers […]

IRS Releases Draft Instructions for 2018 Form 1040

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With simplicity seemingly in the eyes of the beholder, the Internal Revenue Service (IRS) released the 100+ pages of Draft Instructions for the 2018 Form 1040, U.S. Individual Income Tax Return. The IRS released a draft of the 2018 Form 1040 and six accompanying schedules in June. The instructions note that the IRS generally does not […]

IRS Postpones Changes to Form W-4

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The Tax Cuts and Jobs Act (TCJA) made significant changes to the manner in which individual income taxes are calculated. To accommodate and plan for the many changes included in the TCJA, taxpayers would be wise to consider their income tax withholdings on their salaries and wages to ensure that the amounts being withheld in […]

Tax Court Rejects C Corporation Fees as Deductible Expenses

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A common planning strategy for reducing taxable income in a “regular” subchapter C corporation is through the payment of management fees and other charges to related entities (generally-pass-through enterprises or individuals). Oftentimes, these expenditures take the form of excess compensation and/or management fees. However, the payment of these types of expenses does not sit well […]

IRS vs. NJ Battle Continues

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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 […]

IRS Releases “Draft” Form 1040

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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 […]