1099-MISC Reporting Guidelines and Resources
As we tend to receive questions related to Form 1099-MISC, here are general guidelines in order to assist you with the accurate filing of Form 1099-MISC.
2019 Tax Law Update: Highlights of Spending Package’s Tax Law Changes
The federal government spending package titled the Further Consolidated Appropriations Act, 2020, does more than just fund the government. It extends certain income tax provisions that had already expired, or that were due to expire at the end of 2019.
Client Alert: IRS Updates Rules for Using Per Diem Rates
The IRS recently issued guidance on how businesses, self-employed individuals and qualified employees can use the per diem rules to substantiate their business travel expenses for tax purposes. The guidance in Revenue Procedure 2019-48 modifies 2011 guidance to reflect changes made by the Tax Cuts and Jobs Act (TCJA). In a nutshell, the per diem rules themselves have not changed significantly. Primarily, RP 2019-48 deletes guidance for taxpayers who, before the TCJA, were allowed to deduct certain unreimbursed business travel expenses. Here is a refresher on what has changed under the TCJA and the rules for using per diem rates.
QuickBooks Phasing Out Support for Desktop 2015 and Older Software Products
If you are currently using ORBA to prepare your personal and/or business tax returns and are using a version of QuickBooks Desktop 2015 or older, please read this alert.
IRS Updates Rules for Mileage-Related Deductions
The IRS has issued new guidance updating the rules for using optional standard mileage rates when calculating “above-the-line” deductions for the costs of operating an automobile for certain purposes. IRS Revenue Procedure 2019-46 also lays out rules for establishing the amount of an employee’s transportation expenses that are reimbursed using the optional standard mileage rates.
2020 Employee Benefit Plan and Transportation Limits
The Internal Revenue Service (“IRS”) recently announced 2020 cost-of-living adjustments for retirement and health and welfare plans and transportation programs. The majority of limits increased modestly for 2020, while a few dollar limits, such as the IRA contribution limit, will remain the same. Notable increases in 2020 are the defined benefit and contribution plan limits, elective deferral limits and age 50 catch-up contributions.
The New Landscape for Business Year-End Tax Planning
For many businesses, the first filing season after the 2017 tax law changes was a time of uncertainty. Many businesses struggled to ascertain the impact on their bottom line from the law’s sweeping changes. With the next filing season on the horizon, there are lessons learned that you can incorporate into your year-end tax planning.
It’s Not Too Late to Trim Your 2019 Tax Bill
Fall is in the air and that means it is time to turn your attention to year-end tax planning. While several strategies emerged during the first tax filing season under the Tax Cuts and Jobs Act (TCJA), 2019 and subsequent years bring potential twists that must be considered, too. Let’s take a closer look at year-end tax planning strategies that can reduce your 2019 income tax liability.
The U.S. Department of Labor Finalizes the New Overtime Rule
The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of non-exempt workers by more than one million, it is also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than four million but was blocked by a federal district court judge.
IRS Provides Final QBI Real Estate Safe Harbor Rules
In February of this year, the IRS published a proposed safe harbor for owners of certain rental real estate interests who wanted to take advantage of the qualified business income (QBI) deduction (Notice 2017-19). The IRS has now released Revenue Procedure 2019-38, which is its final guidance on the safe harbor.