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San Francisco Tax Preparation / CPA: Final Regulations Update Definition of Qualifying Relative

Filed in CCH NEWS FEED by on October 22, 2020

The IRS has released final regulations that clarify the definition of a “qualifying relative” for purposes of various provisions for tax years 2018 through 2025. These regulations generally affect taxpayers who claim federal income tax benefits that require a taxpayer to have a qualifying relative. Effective DateThese regulations are effective on the date of publication in the […]

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San Francisco Tax Preparation / CPA: Final Regs. Clarify Ratable Rehabilitation Credit is Still a Single Credit

Filed in CCH NEWS FEED by on October 22, 2020

Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is the case even though the credit is allocated ratably over a five-year period. The final regulations adopt without modification proposed regulations released […]

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San Francisco Tax Preparation / CPA: Distributions by Terminated S Corporations Addressed in Final Regs.

Filed in CCH NEWS FEED by on October 22, 2020

Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after an S corporation has become a C corporation. Generally, the regulations are applicable as of the date they are published in the Federal Register. Eligible Terminated S Corporation […]

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San Francisco Tax Preparation / CPA: Final Regulations Limit Dividends Received Deduction

Filed in CCH NEWS FEED by on October 22, 2020

The Treasury and IRS have issued final regulations that limit the Code Sec. 245A dividends received deduction and the Code Sec. 954(c) exception on distributions supported by certain earnings and profits not subject to the integrated international tax regime created by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). Proposed regulations and temporary regulations, issued on June 18, […]

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San Francisco Tax Preparation / CPA: 2020-2021 Special Per Diem Rates Released

Filed in CCH NEWS FEED by on October 22, 2020

The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates include the special transportation industry meal and incidental expenses (M&IEs) rates, the rate for the incidental expenses only […]

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San Francisco Tax Preparation / CPA: Guidance Released on Employee Payroll Tax Deferral

Filed in CCH NEWS FEED by on October 22, 2020

The Treasury and IRS have issued guidance on the recent order by President Trump to defer certain employee payroll tax obligations on wages paid from September 1, 2020, through December 31, 2020. Under the guidance: the due date for the withholding and payment of the employee’s portion of the 6.2-percent old-age, survivors and disability insurance […]

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San Francisco Tax Preparation / CPA: CA – FTB to develop plan for California economic improvement tax voucher program

Filed in CCH NEWS FEED by on October 22, 2020

The Franchise Tax Board (FTB), in consultation with the Treasurer and the Department of Finance, must develop a comprehensive plan for a California Economic Improvement Tax Voucher Program. The FTB must provide the plan to the Assembly and Senate budget committees by March 1, 2021. Taxpayers could use the tax vouchers as a credit against […]

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San Francisco Tax Preparation / CPA: Form 1040 Now Available in Spanish

Filed in CCH NEWS FEED by on October 22, 2020

The IRS will be providing Form 1040 in Spanish for the first time as part of a larger effort to reach underserved communities. The IRS’s newly expanded multilingual initiative is a key part of helping the IRS reach its goal of helping everyone, no matter where they live, what their background is, or what language […]

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San Francisco Tax Preparation / CPA: IRS Launches Partnership Audit Website

Filed in CCH NEWS FEED by on October 22, 2020

The IRS announced the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website. The website intends to be a one-stop location for anything BBA-related including regulations and guidance on electronic submission instructions of forms. Under the BBA, the IRS generally assesses and collects any understatement of tax (called an imputed underpayment) at the […]

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San Francisco Tax Preparation / CPA: IRS Suspends Mailing Notices to Taxpayers with Balances Due

Filed in CCH NEWS FEED by on October 22, 2020

The IRS has temporarily suspended the mailing of three notices—CP501, CP503, and CP504—to taxpayers who have a balance due on their taxes. The IRS is taking this step to avoid confusion for taxpayers who previously received a balance due notice (CP14) and mailed a payment to the IRS, but whose payment may still be unopened […]

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