IRS Releases Draft 2019 Form 1040 with Fewer Schedules and New Form 1040-SR
The IRS released a new draft of Form 1040, U.S. Individual Income Tax Return, for the 2019 tax year that reduces the schedules in the…
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SECURE Act Would Eliminate Stretch IRAs
The SECURE Act as passed by the House of Representatives would replace the 5-year distribution rule for inherited IRAs with a 10-year rule. It would…
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Revised Draft Form W-4 Acknowledges Privacy Concerns, but Remains Complex
The IRS has revised its controversial draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate. When first released, the form faced controversy over: complexity;…
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Form 1099-NEC Revived for Separate Reporting of Nonemployee Compensation
Form 1099-NEC, Nonemployee Compensation, is expected to return in 2020 after a 38-year absence. Taxpayers will use the form to report certain payments currently reported…
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How Corporate Capital Gains and Losses Are Reported and Taxed
Capital gains and losses of corporations are subject to special reporting, computation, and carryover rules that do not apply to other types of corporate income…
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Individual Coverage and Excepted Benefit Health Reimbursement Arrangements
Starting in 2020, employers that qualify can set up “individual coverage” health reimbursement arrangements (HRAs). Employers will also be able to set up “excepted benefit…
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Section 267A Deduction Disallowance: “Disregarded Payments”
A U.S. taxpayer that deducts a “disregarded payment” of interest or royalties to a related person may find its deduction disallowed under IRC §267A. Under…
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Author’s “Brand Income” is Business Income Subject to Self-Employment Tax
All of a novelist’s publishing income was self-employment income from her writing business, rather than “brand income” attributable to her name and likeness. The Tax…
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Publication 15-T Introduces Employers to Tax Withholding Changes for Wages on Form W-4
New IRS Publication 15-T, Federal Income Tax Withholding Methods, provides employer procedures for withholding for wages on revised Form W-4. The IRS has released a…
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2020 Draft Form W-4, Employee’s Withholding Allowance Certificate, Makes Changes from Prior Forms
Draft 2020 Form W-4, Employee’s Withholding Allowance Certificate, makes significant changes to the prior form. In particular, the 2020 form: takes a five step approach;…
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