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.
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Updated IRS Mileage Rate Guidance Reflects the TCJA’s Elimination of Miscellaneous Itemized Deductions
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
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 […]
Additional IRS Guidance Expected on the New Sec. 199A Qualified Business Income Deduction
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 […]
White House Remains Focused on a Second Tax Reform Package
The White House and Republicans in Congress continue to discuss a second round of tax reform, according to National Economic Council Director Larry Kudlow, the President’s top economic advisor. Mr. Kudlow made his comments in an April 5 interview, noting that the President and House Ways and Means Committee Chairman Kevin Brady (R-TX) spoke earlier in the […]
President Trump and House Republicans Planning Phase Two of Tax Reform
Never mind that taxpayers and tax practitioners alike are struggling to learn and understand the many nuances of the Tax Cuts and Jobs Act (TCJA) signed into law by the President on December 22, 2017. Never mind that the law, as passed, includes many ambiguities and unanswered questions that may require Congressional action, through a […]
U.S. Chamber Requests Guidance on Several TCJA Provisions
The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations, recently submitted a letter to the IRS a requesting clarification and guidance on the provisions of the Tax Cuts and […]
IRS Announces Help in Properly Determining Federal Income Tax Withholding Under the TCJA
Most taxpayers realize by now that the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, repealed the long-standing deductions for personal exemptions and dependent exemptions. The previously determined amount of deduction associated with these exemptions was $4,050 per exemption. For example, a married couple filing jointly with two qualifying children would […]
Retirement Plan Limits for 2018 After Tax Reform
Prior to enactment of the Tax Cuts and Jobs Act (TCJA), the Internal Revenue Service published cost-of-living adjustments to various qualified retirement plans and related amounts for 2018 in News Release IR 2017-177 and Notice 2017-64. Recently, the Internal Revenue Service issued News Release 2018-19, clarifying that the TCJA does not affect these adjustments because […]
Interest on Home Equity Loans after the Tax Cuts and Jobs Act
One of the more painful revisions of the Internal Revenue Code arising from the Tax Cuts and Jobs Act (TCJA), enacted on December 22, 2017, was the repeal of the long-standing itemized deduction for interest paid on home equity indebtedness of $100,000 or less. To qualify for the tax deduction, the indebtedness had to be […]