Your search for “” AND “Client Alerts”
Additional Guidance on New Bonus Depreciation: Final and Proposed Regulations
Final regulations and additional proposed regulations were issued for the first-year 100% bonus depreciation deduction. The 2017 tax law expanded the deduction to 100% for qualified property placed in service before the end of 2022. Generally, the bonus then phases out each subsequent year by 20%, until it sunsets in 2027.
Illinois Exempts Transportation and Parking Benefits From Taxation for Not-for-Profit Organizations
Last month, Illinois Governor J.B. Pritzker signed SB1257 into law enacting changes, in part, to the state’s Income Tax Act. A portion of the bill was aimed specifically at the state’s numerous not-for-profit organizations in an attempt to relieve additional burdens placed on them as a result of the Federal Tax Cuts & Jobs Act of 2017 (TCJA). For tax years beginning on or after January 1, 2019, organizations subject to federal unrelated business income (UBI) taxation on expenses paid for certain qualified transportation fringes will no longer also be subject to taxation in Illinois on these expenses.
Time is Running Out on Restating or Fixing Your 403(b) Retirement Plan
Starting in 2017, the IRS began issuing approval letters to document providers who are working with plan sponsors to get their plan documents restated. Plan sponsors of 403(b) plans have until March 31, 2020 to restate their plan documents by adopting an IRS pre-approved 403(b) plan. Individually-designed plans should be amended to correct defects, too, but without receiving a determination letter.
DOL Expands Retirement Plan Options for Smaller Businesses
The U.S. Department of Labor (DOL) has released a final rule which should make it easier for smaller businesses to provide retirement plans to their employees. According to the DOL, the rule will enable more small and midsize unrelated businesses to join forces in multiple employer plans (MEPs) that provide their employees a defined contribution plan such as a 401(k) plan or a SIMPLE IRA plan. Certain self-employed individuals also can participate in MEPs.
Congress Acts to Reform the IRS, Enhance Taxpayer Protections
Congress has passed and President Trump is expected to sign into law a broad package of reforms aimed at the IRS. The Taxpayer First Act contains several new protections for taxpayers along with provisions intended to improve the IRS’s customer service.
IRS Wheels Out Additional Guidance on Company Cars
The IRS has updated the inflation-adjusted “luxury automobile” limits on certain deductions taxpayers can take for passenger automobiles — including light trucks and vans — used in their businesses. Revenue Procedure 2019-26 includes different limits for purchased automobiles that are and are not eligible for bonus first-year depreciation, as well as for leased automobiles.
IRS Updates Rules for Personal Use of Employer-Provided Vehicles
The IRS recently announced the inflation-adjusted maximum value of an employer-provided vehicle under the vehicle cents-per-mile rule and the fleet-average value rule. Employers can use the rules to value an employee’s personal use of such a vehicle for income and employment tax purposes.
Supreme Court to Address the Power of States to Tax Trusts
More than $120 billion of our nation’s income flows through trusts, and the Supreme Court will hear a case that may clarify how much states are able to tax.
2019 Tax Calendar
To help make sure that you do not miss any important 2019 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due.
IRS Provides QBI Deduction Changes Just in Time for Filing
The tax law signed in December 2017 included a dramatic cut in corporate tax rates and also a generous deduction for the qualified businesses income (QBI) of businesses that operate as pass-through entities (PTE)— sole proprietors, S corporations and partnerships (including LLC electing to be S corporations or partnerships).