S Corporation Procedure
- December 11, 2013 - S-Corporation elections governed by IRC Section 1362(a) – Form 2553. If no valid election on file a notice will be sent, concerning the filing status issue. If no response to the notice – campus will process as an 1120 – but no adjustments will be made to: 1120 S Return or to the Shareholder’s return, No Corporation Tax Accessed. If pulled for examination – examiners will make the adjustments. If the entity wants to be taxed as an S- Corporation examiners are to check to see if the late election applies as detailed in Revenue Procedure 2013-30.
Social Security Administration Provides Inflation-Adjusted Figures for 2014
- November 5, 2013 - The Social Security Administration has released the 2014 inflation adjusted numbers for numerous items of importance including the COLA adjustment, tax rate, maximum taxable earnings and exempt amounts for the retirement earnings test, among other things. You can access the SSA Fact Sheet at this URL: http://www.ssa.gov/pressoffice/factsheets/colafacts2014.pdf
Inflation Adjusted Amounts for 2014
- November 1, 2013 - The IRS has released the inflation adjusted amounts for various tax items for calendar year 2014. Included are the new numbers for the tax rate schedules, standard deduction, limitation on itemized deductions, limits for various credits and other important information. You can access the new numbers (IRS Notice 2013-35): http://www.irs.gov/pub/irs-drop/rp-13-35.pdf
- October 22, 2013 - The IRS, has finally announced the counties that didn't have a drought free year where livestock owners get an extended period of time to sell livestock and treat the sale under the involuntary conversion rules.
IRS Proposes New Fee Changes for Installment Payment Agreements and Offers To Compromise
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October 9, 2013 - Regulations have been proposed that would change fees for installment payment agreements and offers to compromise. The new fees would be applicable beginning in 2014. To see the proposed changes: Installment agreement table.pdf
- October 8, 2013 - A recent court ruling has said that IRS can use tax return information for purposes of an FBAR proceeding. Make sure you know whether your clients are subject to the FBAR rules because the penalties for noncompliance can be huge.
Excise Tax on Medical Reimbursement Plans Kicks In
- June 26, 2013 - Many farming operations utilize self-insured medical reimbursement plans or something comparable. But, due to a provision tucked in the 2010 health care law, a new excise tax on such plans was created. The tax took effect in 2012 and it is tied to the number of plan participants (enrolled or covered). The tax is $1 per person for plan years ending after September 30, 2012 and before October 1, 2013. It will be $2 per person for the following plan year and will rise for following years until its sunset several years down the road. The filing deadline is July 31 for plans that have a calendar year-end. IRS Form 720 has been revised to account for the new excise tax. You can see the revised Form 720: http://www.irs.gov/pub/irs-pdf/f720.pdf
Useful IRS Information Released on Several Items, Including How To Handle USDA Discrimination Settlement Payments, and the Maximum Vehicle Values For 2013 To Determine Value of Personal Use of Employer-Provided Vehicles
- April 29, 2013 - The IRS has provided guidance on how to report USDA discrimination settlement payments received as part of the Keepseagle litigation. You can find the guidance: USDA Discrimination Settlement Payments.pdf The IRS has also released the 2013 automobile and truck maximum FMVs for the cents-per-mile valuation and fleet-average annual lease value fringe benefit valuation method. You can access the IRS Notice: http://www.irs.gov/irb/2013-18_IRB/ar09.html . In addition, the IRS has provided guidance (and a safe harbor) on how to determine when construction begins on "qualified facility" for purposes of the renewable electricity production tax credit under I.R.C. Sec. 45(d). Here is the Notice: http://www.irs.gov/pub/irs-drop/n-13-29.pdf
IRS Provides Guidance for Landowners That Receive Income From Natural Resources Via Lease or Royalty
- April 16, 2013 - The IRS has developed a Fact Sheet to guide landowners on the tax implications of receiving lease or royalty income from natural resource development on their property. The Fact Sheet is accessible here: http://www.irs.gov/uac/Newsroom/Tips-on-Reporting-Natural-Resource-Income
IRS Sets Forth Inflation-Adjusted Amounts for 2013
- January 28, 2013 - In Rev. Proc. 2013-15 the IRS has announced the inflation-adjusted amounts for 2013, the amounts for items specified in the new tax law (American Taxpayer Relief Act of 2012 (ATRA), and the beginning of the new 39.6 percent marginal rate. Interestingly, in Table 5, the Rev. Proc. applies the 39.6 percent tax rate to estates and trusts over $11,950. Unfortunately, the ATRA isn't clear on how the new top rate (and the 20 percent capital gain rate) applies to estates and trusts. ATRA, by its language, doesn't apply the new top rate to estates and trusts and doesn't give a threshold specifying the amount at which the top rate would apply. But, ATRA does reinstate the tax rates that were in effect before the cuts in 2001 (that were later extended). That reinstatement includes the 39.6 percent rate and applicable thresholds. You can access the Rev. Proc. here: http://www.irs.gov/irb/2013-05_IRB/ar06.html