Tax Archive

Should You Switch From Accrual to the Cash Method of Accounting?

The passage of the Tax Cuts and Jobs Act of 2017 created additional opportunities for taxpayers to choose the cash method of accounting as the definition of a small business taxpayer. Eligible small business taxpayers that have been using the accrual method but now want to switch to the cash method will need to file Form 3115 by the due date of the tax return for the year of change.

Partnerships Need to Disclose Significantly More Information to IRS Than in Years Past Beginning With 2019 Filings

On September 30, 2019, the Internal Revenue Service posted copies on its website of draft 2019 partnership forms. In this blog, we provide IRS form links and more information on the required disclosures.

One Year Later, Effects of Wayfair on Technology Companies Still Unraveling

As the year wears on, it’s clear the decision carries implications for industries beyond retail and, indeed, for the very basic functions of any business with multi-state operations, which clearly includes technology companies. Not understanding these implications can have significant financial consequences for technology companies.

IRS Heightens Focus on Tax Liabilities of S Corporations

One outcome of the Tax Cuts and Jobs Act (TCJA) is the increased scrutiny by the IRS of S corporations and their shareholders with regard to certain tax liability issues.

DC Enacts Budget That Limits QHTC Program

In July 2019, Mayor Muriel Bowser signed the District of Columbia Fiscal Year 2020 Budget Support Act of 2019 (B23-0209), which contains the Downloading Lost Revenues Amendment Act of 2019. The new Amendment is aimed at reducing tax benefits to Qualified High Technology Companies (QHTCs) to increase and reallocate revenue to housing, environment, and other social programs in the District.

The Not-So-Simple Aggregation Rules for Tax Reform's Simplifying Conventions

Tax reform promised overall simplification for small business taxpayers. While many of these simplifying exceptions existed in some fashion prior to tax reform, the enactment of the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, significantly expanded the universe of taxpayers that qualify for the provisions.

IRS Attempts to Clarify Section 199A Qualified Business Income Deduction in FAQs

Just before the onset of this year’s tax filing deadline, the IRS re-examined Section 199A, the 20 percent deduction for pass-through businesses that was enacted as part of the 2017 Tax Cuts and Jobs Act. As a result, the IRS’ list of frequently asked questions was amended to include guidance for the IRS Section 199A – Qualified Business Income Deduction.

Final Regulations Limit Federal Charitable Contribution Deductions in Connection with Receipt of State Tax Credits

The IRS and Treasury Department recently issued final regulations under Section 170, limiting federal charitable contribution deductions when taxpayers receive or expect to receive state or local tax (SALT) credits in return for charitable donations.

Heightened Security and Clarity – Latest Revision to the EIN Application Process

The IRS recently heightened security measures that altered the process by which individual entities apply for an Employee Identification Number (EIN).

Congress Enacts Significant IRS Reform to Better Protect Taxpayers

The second time around was the charm for the Taxpayer First Act (TFA), legislation that makes taxpayer-friendly improvements at the IRS. Key changes include establishing an independent office of appeals within the IRS, requiring the agency to modernize its infrastructure and adopting enhanced cybersecurity measures.