IRS Offers Settlement to Taxpayers Audited for Micro-Captive Insurance

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The Internal Revenue Service announced in IRS Notice IR-2019-157 that it would send time-limited settlement offers to certain taxpayers who participated in abusive micro-captive insurance transactions and are under audit. Eligible taxpayers will be notified of this offer by a letter containing the applicable terms. The IRS has already sent notices to up to 200 […]

Uncashed Retirement Distribution Checks Taxable in Year of Receipt

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A fundamental tenant of taxation under the United States Internal Revenue Code is that taxable income includes “all income from whatever source derived”.  Thus, under the tax law, all sources of economic enrichment are taxable unless there is a specific provision which works to exclude that item.  Supplementing this tenant is a second fundamental tenant […]

IRS Releases Draft of Simpler 2019 Tax Return for Seniors

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The tax changes generated by the Tax Cuts and Jobs Act (TCJA) and the resultant “simplified” Form 1040 was highly touted by the Trump administration and Republican-controlled Congress as a way to reduce complexity in complying with the tax laws. As a result of the simplification provisions, it was decided that Form 1040-EZ, a shorter […]

Temporary Form 5500 Reporting Relief for Multiple Employer Plans

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Under Section 103(g) of the Employee Retirement Income Security Act ERISA, Multiple Employer Plans (MEPs) are required to file complete and accurate lists of participating employers with their Form 5500, Annual Return/Report of Employee Benefit Plan. Obviously, the very nature of MEPs creates a major compliance challenge. Recognizing that a substantial number of MEPs were […]

New Law Designed to Improve the IRS and Protect Taxpayers

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President Trump has signed the Taxpayer First Act of 2019 (H.R. 3151), which alters the management and oversight of the Internal Revenue Service (IRS) with the aim of improving customer service and the appeals process. The Act also provides new confidentiality safeguards as taxpayers interact with the IRS. The Taxpayer First Act includes provisions that: […]

IRS Sets 2019 Vehicle Depreciation Limits  

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The Internal Revenue Service has released the depreciation deduction limits for passenger autos (including trucks and vans) first placed in service during 2019. These annually inflation-adjusted numbers represent the maximum income tax depreciation allowed under the luxury automobile rules. In Revenue Procedure 2019-26, tables set forth the new depreciation limits. Table 1 provides the depreciation […]

Internal Revenue Service sets 2020 limits on HSA contributions

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The IRS recently announced the annual inflation-adjusted limits on deductions for contributions to a health savings account (HSA) allowed for taxpayers with individual or family coverage under a high-deductible health plan (HDHP) for calendar year 2020. Under Internal Revenue Code Sec. 223, individuals who participate in an HDHP are permitted a deduction in computing their […]