IRS Offers Limited Settlements to Captive Insurers, Continues Other Enforcement Efforts
IRS efforts to crack down on micro-captive insurance schemes continue after some wins in the U.S. Tax Court. The IRS also recently made a limited…
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Short-Term Limited-Duration Insurance
Individuals can now buy “short-term limited-duration insurance” (or “STLDI”) contracts that last up to nearly a year. These contracts are not subject to the Affordable…
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Proposed Regs Allow Tax-Free Replacements of LIBOR-Based Interest Rates
Proposed regulations allow taxpayers to make tax-free replacements of interest rates tied to LIBOR (London Interbank Offered Rate) in debt instruments and non-debt contracts. Taxpayers…
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Colorado Budget Surplus Triggers Income Tax Rate Reduction
In 2019, the Colorado income tax rate will be reduced from 4.63% to 4.50%. This temporary rate reduction is permitted under the Taxpayer’s Bill of…
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IRS Says Cryptocurrency Owners Have Income from Forks and Airdrops
Recent IRS guidance on cryptocurrency concludes that owners realize income when a hard fork is followed by an airdrop. Although many other cryptocurrency issues remain…
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PTC and Opting Out of ICHRA Coverage
Starting in 2020, employers can set up individual coverage health reimbursement arrangements (ICHRAs) for employees and related individuals. An ICHRA can reimburse an employee for…
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Massachusetts Amends Corporate Nexus Rules
Massachusetts amended its rules on corporate excise tax nexus. The rules explain the standards Massachusetts follows when exercising tax jurisdiction over corporations doing business in…
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401(k) Hardship Distribution Final Regulations
The IRS has updated its hardship distribution rules for 401(k) and tax sheltered annuity 403(b) plans. The new rules add a disaster expense safe harbor.…
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Partnerships to Report Foreign Partners Subject to Withholding on Transfer of Partnership Interest
In 2019, a partnership likely will have to report how many foreign partners were subject to 10% withholding because an interest in the partnership was…
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State Tax Treatment of Section 199A Qualified Business Income Deduction
States have been slow to adopt the qualified business income deduction, also known as the pass-through income deduction. Only a handful of states allow individuals,…
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