Senate Rejects Effort to Overturn SALT Deduction Cap

Earlier this week, the Senate rejected a bid by democratic members to overturn IRS regulations prohibiting states from creating charitable funds that taxpayers can contribute to in exchange for a state tax credit. The creation of the credits was an attempt by high-tax blue states such as New York, New Jersey and California to get…

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IRS Issues Priority Guidance Plan

The Internal Revenue Service this week released its priority guidance plan for 2019-2020. The plan, which identifies and prioritizes tax issues that should be addressed through regulations, revenue procedures, notices and other published guidance, calls for the IRS to continue its focus on implementing the 2017 tax law as well as the Taxpayer First Act.…

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Senate Eyes September for Tax Extenders Fix

Senate Finance Chairman Charles Grassley (R-IA) this week released reports from 3 of 6 task forces established to review and advise on the tax extenders issue. Grassley and ranking minority member Senator Ron Wyden (D-OR) are hoping for solutions on which of the tax breaks should be consolidated, made permanent or rejected. It is expected…

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IRS Blocks SALT Workarounds

The Internal Revenue Department (IRS) issued final regulations this week that effectively blocked the effort by some states to get around the $10,000 cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act back in 2017. The workarounds, which allowed – and in most cases encouraged – local communities…

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Tax Extenders Bill Circulating

House Democrats have reportedly come up with a draft tax extenders package that would roll back the 2017 tax law estate tax parameters and expand both the Earned Income Tax Credit and the Child and Dependent Care Tax Credit. The draft tracks with House Ways and Means Committee Chairman Richard Neal’s (D-MA) stated preference to…

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Treasury Dept. Releases Proposed Opportunity Zone Rule

The Department of the Treasury this week released its proposed regulation clarifying aspects of the Opportunity Zones created under President Trump. The Opportunity Zones were created by the Tax Cuts and Jobs Act back in December 2017, ostensibly to encourage investment in 8000+ specific areas across the country by allowing investors to defer, reduce and…

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Court Struck Obamacare, But It’s Still Law

A word of caution . . . despite the fact that a federal district court in Texas ruled two weeks ago that the Patient Protection and Affordable Care Act (aka, Obamacare) was unconstitutional, it remains the law of the land. President Trump’s signing of the Tax Cuts and Jobs Act (TCJA) into law last December,…

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Lame Ducks Pass on Depreciation Fixes

Unfortunately, the lame duck 115th Congress will expire without correcting errors in the Tax Cuts and Jobs Act of 2017 (TCJA) that directly impact small businesses across the nation. The TCJA as passed last December did not extend accelerated depreciation and although there was a whole year to correct the oversight, the rancorous partisanship in…

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US House Tees Up Tax Law Fixes

There’s still a ways to go, but the US House is moving in the right direction this week with the House Committee on Rules voting to send a year-end tax bill to the floor for a vote. The House Ways & Means Committee released its TCJA fix package this past Monday and it may be…

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IRS Releases Rule on Business Interest Deductions

Almost in concert with the proposed Congressional fixes to the TCJA (above), the Internal Revenue Service this week released 439 pages of proposed regulations that in large part address other issues and changes inherent in TCJA passage. Primary amongst them for our readers, the proposed regulations clarify a key provision in the TCJA that limited…

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