tax Archive
Certification deadline extended for work opportunity tax credit
August 11, 2021
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TweetShareSharePin0 Shares The IRS issued Notice 2021-43 Tuesday providing transition relief for the deadline by which employers must request certification of employees as members of the designated community resident or qualified summer youth employee targeted groups for purposes of the work opportunity tax credit (WOTC). Under the transition relief, certain employers have until Nov. 8,
New safe harbor for ERC gross receipts calculation
August 11, 2021
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TweetShareSharePin0 Shares The IRS on Tuesday issued a safe harbor that allows an employer to exclude certain amounts received from other coronavirus economic relief programs in determining whether it qualifies for the employee retention credit (ERC) based on a decline in gross receipts (Rev. Proc. 2021-33). The amounts that can be excluded in calculated gross
Does Your State Have a Corporate Alternative Minimum Tax?
August 11, 2021
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TweetShareSharePin0 Shares This week’s map showcases states which levy alternative minimum taxes (AMTs) to prevent corporations from reducing their corporate income tax liability beyond a certain level. Under an AMT, corporations are required to calculate their income tax liability under two systems and pay the higher amount. This requirement under the federal AMT imposed steep
Buying Property from the IRS
August 11, 2021
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TweetShareSharePin0 Shares A short Chief Counsel Advisory opinion provides a cautionary tale for those purchasing property from the IRS. CCA 2021021011190596 explains that if the buyer at an IRS sale does not follow through and make all of the payments necessary to complete the purchase, the IRS can declare the sale null and void. When
Understanding the Heated Debate Over Cryptocurrencies and Tax Compliance
August 10, 2021
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TweetShareSharePin0 Shares Even close followers of tax news may have been caught off guard when compliance for cryptocurrencies became the hot topic in the Senate’s debate over infrastructure. But what is it really about? In the simplest terms, the measure aims to ensure that people who own and trade cryptocurrencies such as Bitcoin pay the
Infrastructure bill would end ERC, increase cryptoasset reporting
August 10, 2021
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TweetShareSharePin0 Shares The infrastructure bill approved by the Senate on Tuesday (H.R. 3684) would terminate the employee retention credit early and would require broker reporting of cryptoasset transfers. It also contains a few other tax provisions along with spending on a wide variety of infrastructure and other projects. H.R. 3684, known as the Infrastructure Investment
How Can Congress Protect Families Who Receive Excessive Child Tax Credit Payments?
August 10, 2021
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TweetShareSharePin0 Shares Families began receiving monthly Child Tax Credit (CTC) payments on July 15. For many, those regular payments—currently permitted through the end of the year—will combat poverty and help families keep current on monthly bills without having to borrow. But because the CTC depends on income, number of children, and marital status, some changes
Splitting the Refund When One Spouse Files Bankruptcy
August 10, 2021
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TweetShareSharePin0 Shares Three individuals who have all provided guest blogs for PT have co-authored a new ABA Tax Section Publication that could be important for those interested in tax controversy work: Litigating a Case in Tax Court by Sean Murphy Akins, Kandyce Lyndsey Korotky, and David M. Sams. Designed to cover every aspect of a
IRS updates car and truck depreciation limits
August 9, 2021
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TweetShareSharePin0 Shares The IRS issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles (including passenger vans and trucks) placed in service in 2021 (Rev. Proc. 2021-31). The revenue procedure similarly updates income inclusion amounts by lessees of passenger automobiles with respect to vehicles with lease terms beginning in 2021. These limits are updated
TIGTA Report Recommends Shortcutting Deficiency Procedures For Returns Claiming Casualty Loss Deductions
August 9, 2021
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TweetShareSharePin0 Shares A recent TIGTA report discusses the processes the IRS uses to evaluate tax returns that reflect a claimed casualty loss deduction. TIGTA criticizes the IRS for allowing casualty loss deductions that are not allowed under current law. It recommends that the IRS institute up front checks to prevent the processing of returns that may reflect an
