We are working hard to keep you informed with the latest on the Tax Cuts and Jobs Act. Our Tax Cuts & Jobs Act page will keep you updated with the latest resources. We will continue to bring you immediate details as guidance is released. We also have several key seminars and webinars scheduled.
Registration is now open for our July 12-13 Ames (and online) seminar, Entity Planning in the Wake of the Tax Cuts and Jobs Act. This two-day seminar will provide an in-depth review of the impact of the Tax Cuts & Jobs Act on entity planning. The materials will be up-to-date as of mid-summer. Where guidance remains pending, we will discuss the implications of the unknown. The intent of the seminar is to equip tax professionals to help clients with entity planning decisions in light of the sweeping new tax law. Teaching points will be illustrated with case studies. The seminar will also provide a detailed review of issues arising when converting from entity form to another—and pitfalls and dangers to avoid. For detailed information about the seminar or to register, click here. Also watch for brochures hitting your mailboxes soon!
We also have many webinars scheduled throughout the summer, some related to the TCJA and some on other hot tax topics. To check out our summer webinars, click here. We look forward to seeing you!
April 25, 2018 The Scoop - April 25, 2018
April 24, 2018 Applicable Federal Rates (AFRs): May 2018
April 13, 2018 Summary of Tax Rates and Tables: April Update
April 11, 2018 The Scoop - April 11,2018
April 3, 2018 Try to Avoid Filing Iowa Returns at the Last Minute
An entirely renovated Iowa partition law will go into effect on July 1, 2018. On April 11, 2018, Governor Reynolds signed SF 2175 into law. This new law reorganizes and replaces the current Iowa Code chapter 651 and integrates many provisions from the Iowa Rules of Civil Procedure (Division XII), which currently govern partition actions in Iowa. Notably, SF 2175 creates a new partition procedure for “heirs property.” It also authorizes the equitable remedy of “owelty,” a payment of money allowed to equalize the value of property received in a partition in kind action. The new Iowa Code chapter 651 means that a tenant in common not wanting to sell the family farm will likely not be forced to do so. For many of these properties, a buyout or a partition in kind will now be the favored disposition if another cotenant seeks a partition by sale.
Iowa’s partition law, as it applies to family farms, has been in the spotlight since the end of 2016, when the Iowa Supreme Court decided Newhall v. Roll, 888 N.W.2d 636 (Iowa 2016). This opinion illustrated that it’s very hard to get a partition in kind in Iowa. Unlike most other states, Iowa is “unequivocal in favoring partition by sale." Id. at 640. The Newhall case involved two siblings who inherited family land as tenants in common. The land included two separate tracts in separate counties. One 315-acre tract included the “home place” and the other comprised 163 acres of farmland.
Continue reading here.
On April 12, 2018, the United States Court of Appeals for the Fourth Circuit vacated a district court’s judgment and held that a discharge that passed from a point source through groundwater to navigable waters could support a Clean Water Act (CWA) claim. The Fourth Circuit in Upstate Forever v. Kinder Morgan Energy Partners, L.P., became the second federal court of appeals to make such a ruling in 2018. The first was the Ninth Circuit in Haw. Wildlife Fund v. Cnty of Maui. These cases, in addition to the EPA’s recent request for comments regarding this issue, signal a recent push for certainty on the long-time question as to whether indirect discharges from point sources, through groundwater, and into navigable water are subject to regulation under the CWA.
The facts of Upstate Forever were straightforward. In 2014, a gasoline pipeline owned by a subsidiary of Kinder Morgan ruptured, causing approximately 369,000 gallons of gasoline to spill. Although the company repaired the pipeline, all parties agreed that the leaked gasoline had seeped into groundwater and continued to contaminate navigable waters 1,000 feet or less from the pipeline.
Continue reading here.
Judge Lungstrum granted preliminary approval for the $1.51 billion Syngenta settlement on April 10, 2018. This means that formal notice will be mailed to class members on May 11, 2018, at which time the formal claims process will begin. Corn producers and landlords who are members of the class will be able to go online to www.cornseedsettlement.com to file their claims. If they do not have internet access, they will be able to call 1-833-567-2676 to request a paper claim form. All claims must be submitted by October 12, 2018.
Although all members of the class must file a claim by October 12, 2018, to preserve their right to a future payment, the settlement is still provisional or preliminary because Syngenta will have a limited opportunity to walk away by October 10, 2018, after receiving the final opt-out list, and the Court must determine, after all claims have been filed, whether the settlement is fair, reasonable, and adequate. The final approval hearing, after which the court would issue its final approval order, is scheduled for November 15, 2018. That date, however, could be changed without notice to the class.
Continue reading here.
As you know, our work at the Center is dependent on the fees generated by seminar registrations and gifts. If you would like to donate to further the Center's efforts, please contact our Program Administrator, Micki Nelson at email@example.com or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.
On Friday, April 27, Governor Reynolds announced that the Iowa House and Senate leadership had reached an agreement on a tax reform plan. Although the statutory language was not released, several highlights of this plan (which would be implemented in stages) were discussed:
As of today, Iowa tax reform is still a proposal. We will be watching for detailed legislative language and keep you posted as the voting ensues. More information will be posted on our website as details develop.
On April 16, IRS issued guidance (Notice 2018-38) on how C corporations with a tax year that includes January 1, 2018 (but did not start on that date), will calculate their income tax liability in light of the Tax Cuts and Jobs Act (TCJA) rate change. Prior to the TCJA, the tax imposed upon C corporations was based upon a graduated rate, beginning at 15 percent and ending at 35 percent of taxable income. Some corporations were also subject to the alternative minimum tax. Beginning January 1, 2018, the TCJA imposes a 21 percent flat tax rate upon all C corporation income. It also eliminates the corporate AMT.
In the April 16 guidance, IRS affirmed that IRC § 15(a) will apply to calculate a blended tax rate for a C corporation with a fiscal year that crosses from 2017 into 2018.
For more about this guidance, including examples, click here.
CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.