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 […]

Blended Corporate Income Tax Rate Applies to “Bridging” Tax Years

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The Internal Revenue Service recently released confirmation that Section 15 of the Internal Revenue Code will apply to fiscal year corporations whose tax year “bridges” January 1, 2018 (the day that the new lower corporate income tax rate enacted as part of the Tax Cuts and Jobs Act became effective). The information release IR-2018-99 was […]

IRS Releases Fact Sheet for New Depreciation and Expensing Rules  

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The Internal Revenue Service continues to provide additional guidance on the provisions included in the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017. The Service recently released Fact Sheet 2018-9, which highlights the new depreciation and expensing rules. These rules generally favor capital investment and taxpayers and could play an important […]

President Trump and House Republicans Planning Phase Two of Tax Reform

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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

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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 […]

House Democrats Accuse IRS of “Bureaucratic Overreach”

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On March 5, 2018, 11 Democratic members of the House Ways and Means Committee sent a letter to Acting Internal Revenue Service Commissioner David J. Kautter, requesting an explanation for restrictions placed on the prepayment of property taxes in 2017. Kautter is serving as commissioner until Charles P. Rettig, President Trump’s nominee, is confirmed by […]

IRS Announces Help in Properly Determining Federal Income Tax Withholding Under the TCJA

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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

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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

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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 […]

The Corporate Tax Rate Change and Fiscal-Year Taxpayers

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A long-time goal and initiative of tax reform, which came to fruition with the enactment of the Tax Cuts and Jobs Act (TCJA), has been serious corporate tax change. The Congressional and Presidential motivation to make America’s operating environment more comparable with the rest of the industrialized world is intended to enhance the competitive viability […]