The Tax Cuts and Jobs Act of 2017 eliminated the deduction for business entertainment expenses. Now, in Notice 2018-76, the IRS has weighed in with guidance that preserves business deductions for meals incurred in connection with entertainment activities—as long as the meals meet certain requirements.
The House of Representatives passed three new bills collectively referred to as Tax Reform 2.0 on September 28. Some of the bills must still receive at least 60 votes in the Senate, which most commentators consider an unlikely outcome.
In the past, government contractors may have used the term “consultant” or “consulting” to describe the wide range of services they provide. Yet this 2018 tax season, it may be time for contractors to revisit this terminology, particularly if they are structured as a flow‑through entity for tax purposes.
The Tax Cuts and Jobs Act of 2017 (TCJA) made comprehensive changes to the tax code. It’s not surprising that the IRS is in the process of making clarifications to these changes, including proposed regulations for the complex Section 199A deduction.
Access to information is one of the keys to managing risk in an M&A transaction. Investigative due diligence should be placed alongside legal and financial diligence as a critical component of a buyer’s diligence process.
Going through an audit for the first time can be a daunting task. Your auditor will ask for information you might expect, such as employee census and payroll data, plan documents, plan financial statements, contribution deposit history, and more. What you might not expect is getting requests for that information from previous years, or for a sample of participants over a certain timeframe to check for past errors. It’s a lot of data to supply, so keeping good records and planning ahead is paramount.
On September 13, the House Ways and Means Committee approved the Republican Tax Reform 2.0 package. The measure, consisting of three separate bills, is expected to reach the House floor for a full chamber vote during the week of September 24.
When the Financial Accounting Standards Board finally revealed its new revenue recognition standard back in 2014, the standard was beyond complex. As a result, the FASB formed 16 industry task groups to clarify and explain the standard, and issued five related standards. The new standard includes a comprehensive five-step process that an entity should consider when assessing revenue recognition on its contracts.
Can states issues tax credits through taxpayers’ charitable contributions to offset new state and local tax (SALT) limitations under tax reform? Several states have been creative in finding ways to work around the new limitation.
The Supreme Court’s recent decision in South Dakota v. Wayfair spurred many e-commerce companies to reevaluate their tax structures. Yet the Court’s decision will also alter the tax processes of an industry equally dependent on online sales: technology. In this article, we unpack what this tax development means for the high-tech world in what is likely the Court’s most significant state tax decision since 1992.