Tax Warrior Chronicles

IRS to Allow Pass-through SALT Workaround

Posted on Thu, Nov 12, 2020

By: Jonathan S. Kandel, CPA and Clare Porreca, CPA, MT

 

On November 9, 2020, the IRS released Notice 2020-75 announcing proposed regulations will be issued confirming that state and local taxes imposed on and paid by a partnership or S Corporation will be 100% deductible by the entity, and thus not limited to the $10,000 limit on state and local tax (SALT) deductions.

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IRS Expands the Definition of Coronavirus-Related Distributions

Posted on Wed, Jul 22, 2020

The Treasury Department offered easier access to retirement savings in March 2020 as the economic hardships resulting from the COVID-19 pandemic became a forgone conclusion.  Three months later, The IRS has expanded eligibility for coronavirus related distributions and provided further insight into how these new rules should be applied in Notice 2020-50.

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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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HOLY COW! Navigating the IRS Just Got Easier—Or Did It?

Posted on Tue, Jul 16, 2019

By: Eric R. Elmore

 

In March of this year, National Taxpayer Advocate Nina Olson announced her retirement, which takes place at the end of this month. However, her exodus is preceded by one more valuable nugget of wisdom and guidance for U.S. taxpayers. Her office’s “IRS Subway Map” demonstrates the elaborate intricacies that may follow the innocent and naïve directive of, “just call the IRS.” It’s easier said than done!

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Got a Letter from the IRS? What You Should (and Shouldn’t) Do!

Posted on Thu, Jul 26, 2018

By:  Drucker & Scaccetti

 

Don’t play with fire. Do brush your teeth twice a day. Don’t chew with your mouth open. Do say “please” and “thank you.”  These are some of the basic “Dos and Don’ts” engrained into our memory by our parents. As adults, learning is a trial-and-error exercise.  For example, what are the Dos and Don’ts when you’ve received a letter from the IRS? Before you make a mental list of your answers, read on for some tips on how to proceed.

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529 Plans – A Precautionary Tale

Posted on Thu, Sep 01, 2016

By: Steve Rossman, CPA, MT

 

With Labor Day almost upon us, kids (and grown-ups) are focused on back to school festivities.  As we discussed in a recent blog, 529 Plans are a powerful tool for funding higher education costs, which allows your contributions to grow tax-free for future qualified use.  Along with the many benefits of 529 Plans, you should also be aware of some reporting requirements, specifically when a parent or student is reimbursed directly from the 529 Plan.

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