Tax Warrior Chronicles

Guidance on Payroll Tax Deferral Creates More Questions Than Answers

Posted on Mon, Aug 31, 2020

Late on Friday, August 28, 2020, the IRS issued Notice 2020-65 providing highly anticipated guidance addressing the Presidential Executive Order regarding the deferral of certain payroll tax obligations. Unfortunately, the notice failed to address the most basic issues raised by the Executive Order. Today we will discuss what we know, what questions remain, and practical considerations for employers. Implementation of the deferral begins September 1, 2020 – yes, tomorrow.

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PPP Update #7 – What’s New? – Clarity on Deductibility of Expenses & Other Items

Posted on Fri, May 01, 2020

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

 

 

 

While many await formal guidance about the Paycheck Protection Program (PPP) loan forgiveness, the SBA and Treasury were busy issuing various other guidance this week.  Today, we outline and provide our thoughts about this week’s guidance, including deductibility of expenses paid with PPP funds and PPP eligibility standards.

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PPP Update #3 - Paycheck Protection Program Loan - Regulations & Final Application Released

Posted on Fri, Apr 03, 2020

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: Updates #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

At this point, our readers should be familiar with the Paycheck Protection Program (PPP), the intent behind it, and the guidance issued as of April 2, 2020.  Today we have summarized key changes included in the new guidance issued overnight between April 2 and April 3, including the Final Borrower Application and related regulations.

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IRS Provides Expanded Relief for All Taxpayers with April 15 Deadlines

Posted on Fri, Mar 20, 2020

Late in the evening on Friday, March 20, 2020, the Treasury Department and the IRS issued Notice 2020-18, restating and expanding relief provided in Notice 2020-17.  Read on for the details of the expanded relief.

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Families First Coronavirus Response Act Enacted

Posted on Thu, Mar 19, 2020

The Families First Coronavirus Response Act (Families First Act) was approved by the Senate on March 18, 2020, and swiftly signed by the President into law.

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IRS Provides Guidance on Coronavirus Relief Package

Posted on Wed, Mar 18, 2020

The Treasury Department and the IRS finally issued Notice 2020-17 late Wednesday afternoon, providing guidance on how Affected Taxpayers may defer tax payments due to the coronavirus (COVID-19).

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IRS OFFERS PENALTY AND FILING RELIEF ON TRANSITION TAX

Posted on Fri, Jun 08, 2018

By: Yi Yang, CPA, MBA

 

Since our last post on the mandatory Section 965 Transition Tax, the IRS has provided additional guidelines on the reporting procedures for 2017 tax returns.  In today’s post, we’ll delve deeper into the guidelines and learn how you may secure some penalty and filing relief.

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State & Local Tax Deduction Workarounds in IRS Crosshairs

Posted on Thu, May 24, 2018

Daniel Marques, CPA, MT

Chris Catarino, CPA, MT

 

State and local governments and taxpayers beware - the IRS has its eyes on recent proposals designed to circumvent the new $10,000 limit on state and local tax deductions imposed by the Tax Cuts and Jobs Act (TCJA).  For the time being, you may want to hold off on making contributions to these newly established state and local tax credit funds if you expect to receive a federal charitable contribution deduction in return. Here's why...

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Part IV (of 4) MANDATORY TRANSITION TAX ON CERTAIN DEFERRED FOREIGN INCOME

Posted on Wed, Apr 11, 2018

By: Yi Yang, CPA, MBA and Steven Braun, CPA

 

Here we are at the final part of this four-part series on the Mandatory Transition Tax.  The first three parts, explained which taxpayers are subject to the Transition Tax, the due dates of the Transition Tax for different taxpayers, the complexity in determining taxable income for the Transition Tax, and two key components in determining taxable income subject to the Transition Tax: accumulated post-1986 deferred foreign income (DFI) and U.S. shareholder’s aggregated foreign cash position. In Part IV, we provide examples illustrating the calculations of the Transition Tax.

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Tax Reform Update: Interest on Home Equity Loans Often Still Deductible

Posted on Thu, Mar 01, 2018

By: Rosalind W. Sutch, CPA, MT

 

On February 21, 2018, the IRS released IR-2018-32 where it clarified that, in many cases, taxpayers can continue to deduct interest paid on home equity loans under the recently enacted Tax Cuts and Jobs Act (TCJA).  If you have or are contemplating taking out a home equity loan or line of credit, read on to see how you may be affected by TCJA.

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