Final IRS rules provide guidance to colleges and universities on net investment income (NII) tax. The rules are to determine the 1.4% excise tax on the NII of applicable educational institutions. The tax doesn’t apply to state colleges and universities. It applies to institutions that in the preceding tax year had at least 500 tuition-paying … Read More
Final regulations clarify that the premium tax credit isn’t affected by the suspended personal exemption. The IRS has issued an advance copy of final regs stating that the reduction of the personal exemption deduction to zero for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, doesn’t have an effect on an … Read More
How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) for tax years 2018 through 2025. The definition of dependent includes a qualifying relative who meets two tests. The “income test” is met if the individual receives … Read More
In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without … Read More
The IRS is criticized for not catching fraudulent e-signatures, according to one report. An audit by the Treasury Inspector General for Tax Administration (TIGTA) found that while some fraudulent authorizations (such as Power of Attorney forms) were detected, many weren’t. A sample turned up 11 unverified signatures, which affected 1,546 Taxpayer ID numbers that TIGTA … Read More
To say that most small to midsize businesses have at least considered taking out a loan this year would probably be an understatement. The economic impact of the COVID-19 pandemic has lowered many companies’ revenue but may have also opened opportunities for others to expand or pivot into more profitable areas. If your company needs … Read More
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Thursday, … Read More
The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and how, … Read More
The Treasury Inspector General for Tax Administration (TIGTA) said in an audit that the accuracy of Currency Transaction Report (CTR) data in IRS systems must be improved to ensure its usefulness in compliance activities. The IRS regularly imports CTR data from the Financial Crimes Enforcement Network (FinCEN). Financial institutions are required to file CTRs with … Read More
Under current law, 100% bonus depreciation will be phased out in steps for property placed in service in calendar years 2023 through 2027. Thus, an 80% rate will apply to property placed in service in 2023, 60% in 2024, 40% in 2025, and 20% in 2026, and a 0% rate will apply in 2027 and … Read More