The IRS notified tax software companies that it had discovered an error in the Schedule D, Capital Gains and Losses, Tax Worksheet used to calculate the tax on certain capital gains that had new rates as a result of the law known as the Tax Cuts and Jobs Act.
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TOPICS / PROCEDURE
Tax Planning; Tax Minimization
Payment of an award for lost working time is taxable compensation
An award of wages for working time lost due to an injury on the job is taxable compensation under the Railroad Retirement Tax Act.
Form 8995 will be used to calculate QBI deduction for 2019 tax returns
The IRS posted a draft of a form that affected taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A.
Safe harbor issued for valuing pro sports trades
The IRS will permit professional sports teams that trade player contracts to recognize zero gain if both parties to the exchange adopt the safe harbor and do not exchange cash.
AICPA asks government to issue more QBI deduction guidance
The AICPA asked Treasury and the IRS to issue additional guidance on Sec. 199A beyond the recently finalized regulations and a proposed revenue procedure in the form of a notice on a safe harbor for rental real estate.
Questions remain about the excess business loss rule
IRS guidance is needed to determine items of business income, gains, losses, and deductions to arrive at the amount of excess business losses.
Taxpayers will file QBI deduction computation with IRS next year
The IRS posted a draft of a form that affected taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A.
IRS to issue proposed regs. on the deductibility of expenses for certain business meals
Notice 2018-76 generally allows a taxpayer a 50% business deduction for meals associated with an entertainment activity to the extent that the meals are purchased separately from the entertainment, or the cost is stated separately from the entertainment cost on the receipt.
Tax credits in bankruptcy
Tax refunds that count as “public assistance benefits” may be exempt in bankruptcy.
Amended returns satisfy statement-of-inconsistency requirement
A taxpayer’s amended returns sufficiently apprised the IRS of inconsistencies between the amended returns and the returns filed by the bankruptcy trustee of his wholly owned S corporation.
IRS issues guidance on withholding for 2019
The IRS issued a notice providing interim guidance for the 2019 calendar year on income tax
withholding from wages and from retirement and annuity distributions.
Loss deductions for abandonment of intangible assets
Abandonment of intangible property should be established by detailed documentation.
Determining deductibility of meals after the TCJA
Practitioners must use due diligence when clients claim any deductions related to business meals.
IRS issues final rules on adequate substantiation of charitable contributions
Final regulations address how taxpayers can comply with the requirements for adequate substantiation of charitable contributions of money or property.
Momentum from tax reform could lead to IRS reorganization
House-passed legislation includes goals for improving the IRS but lacks descriptions of specific reforms and the funding needed.
Sec. 163(j) places renewed importance on tax shelter status
The exemption to the limitation on business interest under Sec. 163(j) does not apply to a tax shelter prohibited from using the cash-receipts-and-disbursements method of accounting under Sec. 448(a)(3).
Land donations may not result in desired tax benefit
A charitable contribution deduction is available if there
is no quid pro quo.
IRS guidance explains changes to standard mileage rate rules and depreciation in the Tax Cuts and Jobs Act
The IRS issued guidance on the standard mileage rates and depreciation limits that were changed by the Tax Cuts and Jobs Act.
Basis issues in cryptocurrency
For investors, cryptocurrency will be regarded as a capital asset, so a key component of correctly determining the tax treatment of a cryptocurrency investment will be establishing its basis.
IRS updates charitable contribution procedures
The IRS issued new procedures for contributions to charitable organizations, including rules for when donors can rely on the information about an organization’s tax-exempt status on the IRS database Tax Exempt Organization Search.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
