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Revenue Procedure 2019-08

The Internal Revenue Service issued Revenue Procedure 2019-08 today to provide guidance on deducting expenses under Section 179(a). These rules, as amended by the Tax Cuts and Jobs Act (TCJA) in December 2017, generally apply to tax years beginning after 2017. Section 179 allows taxpayers to deduct the cost of certain property as an expense […]

Slightly Embellished Prayer (Russell Baker)

“O mighty Internal Revenue, Who turneth the labor of man to ashes, We thank thee for the multitude of thy forms, Which thou has set before us, And for the infinite confusion of thy commandments, Which multiplieth the fortunes of (enrolled agents) and accountants alike, Grant that this sacrifice not be found insufficient unto they […]

New Form 1040

Form 1040 has been redesigned for tax year 2018. The revised form consolidates Forms 1040, 1040A and 1040-EZ into one form that all individual taxpayers will use to file their 2018 federal income tax return. Renew ITIN to avoid refund delays Many Individual Taxpayer Identification Numbers (ITINs) expired on December 31, 2018. This includes any […]

IRS kicks off tax-filing season as tax agency reopens

The Internal Revenue Service successfully opened the 2019 tax-filing season! More than 150 million individual tax returns for the 2018 tax year are expected. The IRS worked to successfully implement the biggest tax law changes in 30 years. Following the government shutdown, the IRS is working to promptly resume normal operations. “Taxpayers can minimize errors […]

IRS Release

As of January 16, 2019, the IRS released that 54.7% of employees would return to the job to process tax returns and issue refunds. We will continue to update our clients as the IRS information is released.

Three Weeks and Counting

The Internal Revenue Service shut down on December 22, 2018. The vast majority of IRS employees turned off their computers, and cellphone and went home. Approximately 10,000 workers (out of over 80,000) were asked to continue working -most without pay- under the “protection of government property” (i.e., your tax dollars) exception. The Department of Treasury […]

Like-kind Exchanges Now Limited to Real Property

The Internal Revenue Service reminded taxpayers that like-kind exchange tax treatment is now generally limited to exchanges of real property. Like-kind exchange treatment now applies only to exchanges of real property that is held for use in a trade or business or for investment. An exchange of real property held primarily for sale still does […]

“Tax Transcript” email scam

The Internal Revenue Service and Security Summit partners today warned the public of a surge of fraudulent emails impersonating the ITS and using tax transcripts as bait to entice users to open documents containing malware. The scam is especially problematic for business whose employees might open the malware because malware can spread throughout the network […]

Treatment of Leave-Based Donation Payments

 The Internal Revenue Service will not assert that cash payments an employer makes to organizations in exchange for vacation, sick, or personal leave that its employees elect to forgo constitute gross income or wages of the employees if the payments are (1) made to the organizations for the relief of victims of Hurricane Michael; (2) […]

Business Owners Can Claim a Qualified Business Income Deduction

Eligible taxpayers may now deduct up to 20% of certain business income from domestic businesses operated as sole proprietorships or through partnerships, S-corporations, trusts, and estates. The deduction may also be claimed on certain dividends. Eligible taxpayers can claim the deduction for the first time on the 2018 federal income tax return they file in […]