This is a roundup of tax news and opinion. Opinions found at the link are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall.
Once More Unto the Breach: 199A Filing Season Round 2 - Eric Yauch, Tax Notes
"Taxpayers and return preparers alike have digested final rules and other guidance on the passthrough deduction over the past year, but other changes may upend any sense of comfort this filing season."
Your blogger is quoted:
“Since we have forms this year for 199A, that will be different . . . and helpful,” Joe Kristan of Eide Bailly LLP said. “Other than that, I think it’s more a matter of being able to apply experience. We’ll have a better understanding of rental issues and self-rental, and of how the computations work when they hit the [Form] 1040.”
Just as the tax community started to get used to the passthrough deduction, the IRS threw a monkey wrench into everything by making big changes to the Form 1065, “U.S. Return of Partnership Income,” and the Schedule K-1 that accompanies it…
“I think most people don’t yet appreciate how much work the new section 704(c) disclosures on partnership returns will be,” Kristan said. “I expect we will be OK, but from my teaching around the state at practitioner schools, I expect many preparers to struggle getting their arms around this, and many disclosures will fall short of what the Service wants.”
Fun every season.
Ocean County, New Jersey Attorney Sentenced to One Year and One Day in Prison for Failing to Pay Over Payroll Taxes and Making False Statements on Loan Application - Department of Justice press release. "For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS."
“Borrowing” payroll taxes withheld can escalate quickly into a criminal investigation. Eide Bailly tax controversy specialists can help get payroll taxes get caught up before things get out of hand.
Substantiation – The Key To Tax Deductions - Roger McEowen
"The substantiation rules differ depending on the type of deduction being claimed. Good recordkeeping is essential and the failure to do so can make a return 'low-hanging fruit' for the IRS to easily pluck."
Legal Funding Impacts Taxes, On Funding & Later Settlement - Robert Wood, Forbes. "Notably, attorney fees can be taxed in surprising ways, especially under the new tax law."
Did you know? Eide Bailly has transfer pricing specialists for companies with international affiliates.