Focus shifts to other developments in Federal Income Taxes
Wolters Kluwer Tax & Accounting today announced the publication of its “2020 Post-Filing Season Update,” available as a complimentary download through the award-winning CCH® AnswerConnect online research platform. The briefing highlights key developments during the filing season that will impact taxpayers of all types for the remainder of 2020.
“In 2019 the IRS (Internal Revenue Service) had to deal with the government shutdown. This year, it faced many challenges stemming from the effects of the COVID-19 pandemic, but the IRS employees were able to continue to promulgate guidance while working from home,” said Mark Luscombe, JD, LL.M, CPA, and Principal Federal Tax analyst for Wolters Kluwer Tax & Accounting. “This tax briefing is designed to bring taxpayers up-to-date on what has been happening while everyone was focused on tax return preparation.”
Key 2020 tax updates
Key items included in the 2020 tax developments are:
- COVID-19 Legislation. While much of the COVID-19 legislation enacted by Congress had an impact on 2019 and even 2018 tax returns, many more provisions will have an impact on 2020 returns. Congress is still considering additional COVID-19 legislation before it breaks for its August recess
- IRS Business Guidance. The IRS continues to issue guidance implementing the Tax Cuts and Jobs Act as well as addressing other matters. Areas addressed in 2020 business-related guidance include stock distributions by mutual funds and real estate investment trusts, deductibility of fines and penalties, definition of “real property” for like-kind exchanges, covered asset acquisition rules, final regulations with respect to FDII (foreign-derived intangible income) and GILTI (global intangible low-taxed income) deductions, foreign tax credit as a listed transaction, low-income housing credit, ratable rehabilitation credit, renewable electricity production and energy credits, carbon sequestration credits, and hybrid dividends
- IRS Individual Guidance. IRS guidance related to individuals has included changes to wage withholding and redesigned Form W-4, the definition of qualifying relative for child-related tax benefits, reporting relief for transactions with certain foreign trusts, forbearance programs arising from COVID-19, cafeteria plans and COVID-19, arrangements that hold real property as trusts, and COVID-19-related distributions and plan loans
- Court Guidance. The Supreme Court has ruled that state law applies to allocations of refunds from consolidated tax returns
The Tax Briefing from Wolters Kluwer Tax & Accounting dated July 24, 2020 and titled “2020 Post-Filing Season Update” is available for download now.
To read the full press release, click here.
About Wolters Kluwer
Wolters Kluwer Tax & Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy, and efficiency.
Wolters Kluwer Tax & Accounting is part of Wolters Kluwer (WKL), a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with advanced technology and services.
Wolters Kluwer reported 2019 annual revenues of €4.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
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