Federal Tax Headlines

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…

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…

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…

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…

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…

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…

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;…

A taxpayer who misses the 60-day rollover deadline for IRAs or retirement plans can now self-certify they qualify for a hardship waiver. Historically, taxpayers had…

Recipients of taxable scholarships and Native American per capita distributions have been surprised with higher tax liabilities due to changes in the kiddie tax rules.…