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San Francisco Tax Preparation / CPA: Proposed Regs Address State and Local Tax Payments by Partnerships, S Corporations

Filed in CCH NEWS FEED by on December 24, 2020

The IRS intends to issue proposed regulations to clarify that state and local income taxes imposed on and paid by a partnership or an S corporation are deductible by the partnership or S corporation in computing non-separately stated taxable income for the year of the payment. The proposed regulations are intended to provide certainty to […]

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San Francisco Tax Preparation / CPA: Guidance on Form W-2 Reporting of Deferred Employee Tax

Filed in CCH NEWS FEED by on December 24, 2020

The IRS has released guidance on its website for employers and employees regarding deferral of employee Social Security tax under Notice 2020-65, I.R.B. 2020-38, 567. In August, the IRS issued Notice 2020-65 in response to a Presidential Memorandum that allowed deferral of the withholding, deposit, and payment of certain employee payroll tax obligations. The Notice allows employers the […]

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San Francisco Tax Preparation / CPA: Life Expectancy and Distribution Period Tables for RMDs Updated

Filed in CCH NEWS FEED by on December 24, 2020

The IRS has issued final regulations to update the life expectancy and distribution period tables under the required minimum distribution (RMD) rules. The tables reflect the general increase in life expectancy. The tables would apply for distribution calendar years beginning on or after January 1, 2022, with transition relief. RMDs apply to qualified plans, including […]

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San Francisco Tax Preparation / CPA: Guidance for Applying New, Proposed Bonus Depreciations Regs

Filed in CCH NEWS FEED by on December 24, 2020

The IRS has provided guidance to taxpayers that want to apply either Reg. §1.168(k)-2 and Reg. §1.1502-68, or want to rely on proposed regulations under NPRM REG-106808-19, for: certain depreciable property acquired and placed in service after September 27, 2017, by the taxpayer during its tax years ending on or after September 28, 2017, and before the taxpayer’s first […]

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San Francisco Tax Preparation / CPA: Supreme Court Hears Oral Arguments in ACA Challenge

Filed in CCH NEWS FEED by on December 24, 2020

The U.S. Supreme Court heard oral arguments in California v. Texas, the latest challenge to the Affordable Care Act (ACA). The ACA expanded insurance coverage, and includes popular provisions such as required coverage of preexisting medical conditions. Three major issues are at play in this case: Do the plaintiff challengers of ACA—two individuals, the Trump Administration, […]

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San Francisco Tax Preparation / CPA: 2021 Inflation Adjustments for Pension Plans, Retirement Accounts Released

Filed in CCH NEWS FEED by on December 24, 2020

The IRS has released the 2021 cost-of-living adjustments (COLAs) for pension plan dollar limitations and other retirement-related provisions. Key Unchanged AmountsThe 2021 contribution limit remains unchanged at $19,500 for employees who take part in: 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan The catch-up contribution limit for employees aged […]

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San Francisco Tax Preparation / CPA: IRS Releases 2021 Inflation-Adjusted Tax Tables, Standard Deduction, AMT and Other Amounts

Filed in CCH NEWS FEED by on December 24, 2020

The IRS has released the annual inflation adjustments for 2021 for the income tax rate tables, and for over 50 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation. 2021 Income Tax BracketsFor 2021, the highest income tax bracket of 37 percent applies when taxable income hits: $628,300 for […]

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San Francisco Tax Preparation / CPA: CA – Used car dealer entitled to reported taxable sales adjustments

Filed in CCH NEWS FEED by on December 24, 2020

A used car dealership was entitled to an adjustment of audited understatement of reported sales for California sales and use tax purposes. In this matter, although the taxpayer did not provide a sales journal or other summary record of sales, the California Department of Tax and Fee Administration (department) credited the taxpayer for a bad […]

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San Francisco Tax Preparation / CPA: IRS SBSE Released Fiscal 2021 Focus Guide

Filed in CCH NEWS FEED by on December 24, 2020

The IRS Small Business and Self-Employed (SBSE) business unit has released its Fiscal 2021 Focus Guide, titled “It’s Still the Time,” to lay out the compliance and service strategies for the coming year. This document provides an overview for both internal and external audiences to understand the agency operational priorities for SBSE’s audit and collection activities, which […]

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San Francisco Tax Preparation / CPA: IRS Releases Draft Form 1065 Instructions on Capital Reporting

Filed in CCH NEWS FEED by on December 24, 2020

The IRS released an early draft of the instructions to Form 1065, U.S. Return of Partnership Income, for tax year (TY) 2020. The draft included revised instructions for partnerships required to report capital accounts to partners on Schedule K-1 (Form 1065). The draft instructions are intended to give tax practitioners a preview of the changes before the […]

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