IRS Moves to Block SALT Cap Workarounds

The Internal Revenue Service (IRS) has issued a proposed new rule that will serve to block state efforts to circumvent the $10,000 state and local tax (SALT) deductions limit that was established by the Tax Cuts and Jobs Act last December. A number of high-tax states – New York, New Jersey and Connecticut, in particular…

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IRS Proposes Rule on Enhanced Depreciation

The Internal Revenue Service (IRS) last week released proposed regulations clarifying the requirements for property to qualify for enhanced depreciation deductions. The issue stems from the fact that the Tax Cuts and Jobs Act expanded bonus depreciation for certain properties allowing for 100 percent first-year deductions.  We are reviewing the proposed rules relating the Section…

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IRS Plans Strategically

Speaking of government agencies and their future plans, none other than the Internal Revenue Service (IRS) actually developed and last week released a new Five-year Strategic Plan focusing on the implementation of the new tax law as a top priority and “improving taxpayer service and tax administration.” The agency has long argued that it needs…

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IRS Lowers Family HSAs Limit

Our friends at SESCO Management Consultants advise us that the IRS has lowered the 2018 Family contribution limit on Health Savings Accounts (HSAs) to $6,850 from the previously announced limit of $6,900. The new lower contribution limit was recalculated to factor in the impact of the Tax Cuts and Jobs Act signed into law back…

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Trump To Name New IRS Commissioner

Rumored to be in the works for a number of weeks, President Trump yesterday confirmed that he would submit the name of California tax attorney Charles Rettig to the US Senate for confirmation as the new Commissioner of the Internal Revenue Service. If confirmed by the Senate to the seven-year term as commissioner, Rettig would…

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IRS Issues New Withholding Tables

In the wake of the Tax Cuts and Jobs Act being signed into law by President Trump just before Christmas, the Internal Revenue Service (IRS) recalculated the amounts that employers should withhold from employee paychecks for tax obligations. The IRS guidance on the new withholdings was issued the week before last and employers should use…

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IRS Extends Forms to Employees Deadline

The Internal Revenue Services (IRS) has extended the due date for distributing 2017 health coverage information forms to employees. The deadline, originally set for January 31 has now been extended to March 2, 2018. Self-insured employers and all employers with 50 or more full-time equivalent employees now have until March 2, 2018, to provide Form…

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From Tax Reform to IRS Reform?

We’ve all been watching closely as Congress has worked to and has seemingly succeeded in patching together a tax reform package with a real possibility of becoming law. But beyond that possibility, we also learned this week that the House Ways and Means Oversight Subcommittee has set its sights on a more appetizing target for…

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IRS Formally Withdraws Section 2704 Regs

As the US Treasury advised would happen a few weeks back, the Internal Revenue Service this week officially withdrew the Section 2704 regulations implemented by the Obama administration last year. Ostensibly, the regulations targeted the process of valuation of business interests for estate or gift tax purposes with an eye of more stringently taxing family…

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Treasury Targets Family Gift Rules

It’s not just the regulations and rulings of the Obama-era NLRB and Department of Labor that the Trump administration is looking to correct, as the Treasury Department this week released a report detailing the regulatory changes it will pursue. In an 11-page report entitled: Identifying and Reducing Tax Regulatory Burdens, the Treasury Department continued the…

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