New budget agreement brings additional tax changes
Posted February 14, 2018 / No comments
The ink on the Tax Cuts and Jobs Act (TCJA), which swept in a tidal wave of changes to federal tax rules, had been dry for only seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), which President Trump signed into law on February 9,
Read MoreThe Bipartisan Budget Act of 2018
Posted February 13, 2018 / No comments
The Bipartisan Budget Act of 2018, which contains some tax provisions, was signed into law on Feb. 9. It will fund the government through March 23, averting another government shutdown for now. It also extends for one year a set of tax provisions, known as “extenders,” which expired at the end of 2016. Other tax-related provisions include
Read MoreHCTC Questions?
Posted February 6, 2018 / No comments
Do you have questions about health coverage tax credits (HCTCs)? The IRS recently posted common questions and answers (Q&As) on its website to inform interested parties about advance payments of HCTCs for 2018. The HCTC is a refundable income tax credit for eligible individuals to help reduce the cost of certain coverage. The credit is
Read MoreGovernment Shutdown Tax Changes
Posted January 24, 2018 / No comments
The government shutdown ends. Late on Jan. 22, President Trump signed a continuing resolution (CR) to fund the federal government until Feb. 8. The measure also contains some tax-related changes. It will delay for 2 years the 2.3% medical device excise tax (It took effect on Jan. 1, 2018); delay for 2 years (until 2022)
Read MoreThe Tax Cuts and Jobs Act: Expenses
Posted January 23, 2018 / No comments
The Tax Cuts and Jobs Act made two changes to business meals and entertainment expenses, effective for amounts incurred or paid after Dec. 31, 2017. The first change disallows deductions for business-related entertainment expenses. (Under prior law, a taxpayer could deduct 50% of such expenses.) In addition, the 50% limit on the deductibility of business
Read MoreHow will the Tax Cuts and Jobs Act affect your estate plan?
Posted January 19, 2018 / No comments
Effective January 1, 2018, the Tax Cuts and Jobs Act of 2017 (TCJA) reduces individual and corporate tax rates, eliminates a host of deductions and credits, enhances other breaks and makes numerous additional changes. One thing the TCJA doesn’t do is repeal the federal gift and estate tax, as originally contemplated by the House of
Read More2018 Tax Filing Season Will Begin Soon!
Posted January 9, 2018 / No comments
The 2018 tax filing season will begin on Jan. 29, the IRS announced. That’s the date the IRS will begin accepting electronic and paper returns (though many tax professionals and software companies will accept returns earlier). Processing returns will begin in mid-Feb. The earliest that refunds claiming the earned income credit or additional child tax credit
Read MoreBusinesses: Backup withholding is decreasing in 2018
Posted January 4, 2018 / No comments
Taxpayers are required to deduct backup withholding on certain non-wage payments made to those who filed information returns but they had missing or incorrect taxpayer identification numbers. The backup withholding rate is 28% through Dec. 31, 2017. But under the Tax Cuts and Jobs Act, it will be reduced to 24% on Jan. 1, 2018.
Read MoreThe IRS Means Business: Trust Fund Recovery Penalty
Posted January 2, 2018 / No comments
The IRS means business. If employers withhold tax from employee paychecks but fail to pay that amount over to the IRS, the penalty (called the Trust Fund Recovery Penalty) is 100% of the unpaid tax, and can be assessed personally against responsible persons. When one law firm’s three equal shareholders failed to pay the tax,
Read MoreTax Cuts and Jobs Act offers favorable tax breaks for businesses
Posted December 27, 2017 / No comments
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room
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