October 2016

October 27, 2016

2017 Pension Contribution Limits Announced

While many limits remained the same as 2016, some were raised to reflect cost-of-living increases.

October 26, 2016

Treasury Inspector General Says IRS Is Missing Billions in Backup Withholding

A report from the TIGTA found that potentially billions of dollars of revenue is being lost due to the Internal Revenue Service’s lax enforcement of the backup withholding rules.

October 25, 2016

IRS Issues 2017 Inflation Adjustments for Many Tax Provisions

The IRS issued its annual revenue procedure containing inflation-adjusted amounts for the 2017 tax year, affecting over 50 Code provisions, as well as the new tax rate tables for individuals and estates and trusts.

October 24, 2016

FASB Simplifies Financial Reporting for Income Taxes

FASB issued an accounting standard that is designed to simplify the financial reporting for the income tax consequences of intra-entity transfers other than inventory.

October 19, 2016

Social Security Administration Announces Large Increase in 2017 Wage Base

The SSA announced that the maximum amount of earnings subject to the Social Security tax will increase by more than 7% in 2017, after remaining flat in 2016.

October 14, 2016

Earnings-Stripping Rules Make Many Changes From Proposed Regs.

The new rules are part of the Treasury Department’s larger effort to curb corporate inversions.

October 13, 2016

New Rules Allow More Time to Elect to Take Disaster Loss in Prior Year

The IRS issued regulations giving taxpayers in federally declared disaster areas more time to elect to take a disaster loss on their prior year’s federal income tax return.

October 13, 2016

PTIN Class Action Lawsuit Affects All Tax Return Preparers

A class action lawsuit currently pending in a federal district court includes in its class of plaintiffs all tax return preparers who obtained or renewed a PTIN after Sept. 30, 2010.

October 10, 2016

Olympic Tax Break Enacted

Legislation excluding prize money earned by Olympians and Paralympians from gross income was signed into law.

October 4, 2016

Disguised-Sale and Partnership Liability Allocation Rules Issued

The IRS issued three sets of regulations addressing issues of disguised sales of property by or to a partnership and allocations of excess nonrecourse liabilities to partners.

October 3, 2016

Final Rules Allow Credit for Development of Internal-Use Software in Some Cases

Software a taxpayer develops for its own general and administrative internal use can qualify for the research and development credit under regulations finalized by the IRS.