2022-02-07 TaxPros Account Improvements Coming
Continuing saga of the K-2 and K-3 filing issues, including an extreme delay in accepting them electronically.
2022-01-31 There are K-2s and K-3s in Your Future
IRS revises instructions for Schedule K-2 and K-3 and points taxpayers to fact more may need to file this than might have thought they would
2022-01-10 Expenses Used for PPP Forgiveness and S Corporations
IRS publishes detail on changes for amended returns and research credits
2021-12-20 BBBA Is Not Coming Soon
BBBA fails to clear Congress before adjourning for the year and Senator Manchin states he is a no vote on this bill
2021-11-29 ERC Developments Return
IRS modifies 2021 Form 1065 draft instructions to add self-employment income information
2021-10-18 Can Taxpayers Rely on IRS FAQs?
Two weeks later, Congress is still working on the infrastructure and reconciliation bills
2021-10-04 Hobby Loss Deduction Problem
Congress is still working on the infrastructure and reconciliation bills
Arizona to Add Elective Entity-Level Income Tax Beginning in 2022 as a SALT Cap Workaround
In the Tax Cuts and Jobs Act (TCJA) Congress imposed a $10,000 cap for deductions of state and local taxes not related to a trade or business or a §212 activity on Schedule A.
Arizona Small Business Income Tax Sent to the Governor – How Would it Work?
The Legislature has sent to the Governor for signature SB 1783 that would create an elective Arizona Small Business Income Tax.
Arizona Proposition 208 – What Does It Mean?
Proposition 208, on the ballot in the 2020 general election, would add a new surcharge to Arizona income taxes that is set to take effect for tax years beginning from and after December 31, 2020—or, for most taxpayers, calendar year 2021 individual tax returns. [1]
Screenwriter Subject to California Tax Even Though All Work Done in Arizona
The California Office of Tax Appeals in the Matter of the Appeal of Blair S. Bindley, OTA Case No. 18032402 [1] ruled that an Arizona individual who had a contract for screenwriting services for two California LLCs had California source income on which he had to pay tax, even though all services were performed in Arizona.
Tax Analysts Reports That Conformity Bill Has Been Signed Into Law
Not there was much question about the issue, but State Tax Notes (“Arizona Enacts Remote Seller, IRC Conformity Law,” State Tax Notes, June 4, 2019) reported this morning that Governor Ducey signed the income tax conformity/nexus tax bill (HB 2757) into law.
Talk All Apple All the Time
Since I use Apple products for presentations, some may think this clip would be especially interesting to me:
iPad As A PDF Device For Continuing Education
I wrote last year about using the Kindle DX in CPE presentations. The DX was the a device that allowed full page viewing of PDFs, which eliminated the need for me to carry around printed manuals.
Schedule K-2 and K-3 Will Be Required to Be Provided Unless Parrtnership Knows It Will Not Be Needed Even if Partnership Has No Foreign Acivities or Partners
The IRS made modifications to the instructions for new partnership Schedules K-2 and K-3 (Form 1065) [1] that will require partnerships to either have all partners certify that certain information will not be necessary to complete some international tax related items on their return (including the Foreign Tax Credit) or complete the relevant portions of Schedule K-2 and K-3 and provide them to all partners that they are not aware will not need the information..
AICPA Releases Response to IRS Announcement on Relief for Automated Notices
The AICPA released what is, fundamentally, a critical response to the IRS statement on offering relief to taxpayers for automated notices, [1] stating “ [t]he American Institute of CPAs (AICPA) believes this action is a positive first step, but believes that more should be and could be done by the IRS, without the need for congressional action, to reduce erroneous automated notices and unnecessary taxpayer contact with the Service.” [2].
IRS Will Suspend the Mailing of Automated Notices About Taxpayers Not Filing a 2020 Return for Which the IRS Has a Payment
The IRS has responded to growing pressure to provide some automated notice relief to taxpayers in a post to their website dated January 27, 2022.
IRS Expands on Reporting Expenses Used to Obtain PPP Loan Forgiveness on Form 1120S, Schedule M-2
The IRS has added more clarification in the final Form 1120S instructions [1] about how expenses paid with PPP loan funds that lead to debt forgiveness should be treated in the computation of the accumulated adjustments account (AAA) and the other adjustments account (OAA).
IRS Provides Details for Reporting PPP Forgiveness Options Under Revenue Procedure 2021-48
In final versions of instructions to Forms 1120S [1] and Form 1065, [2] the IRS has provided additional guidance on reporting PPP loan forgiveness on those forms using the methods outlined in Revenue Procedure 2021-48.
Updated Notice on Substantially Equal Payments Issued by IRS
When the IRS released the final regulations updating the required minimum distribution and other life expectancy tables, the agency noted that it would be releasing additional guidance to deal with the impact on substantially equal payments. In Notice 2022-06 [1] the IRS has now released that guidance.
Form 1024 Must Be Filed Electronically
Electronic filing of Form 1024, Application for Recognition of Exemption Under Section 501 (a) or Section 521 of the Internal Revenue Code, via https://www.pay.gov was made mandatory upon the release of Revenue Procedure 2022-08 [1] on January 3, 2022.
