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Today the FASB issued Proposed Accounting Standards Update, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income .  The Financial Accounting Standards Board ( FASB ) today issued a proposed Accounting Standards Update (ASU) intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017. Stakeholders are encouraged to review and provide comments on the proposed improvements by February 2, 2018. “After the Tax Cuts and Jobs Act was enacted, stakeholders expressed ...
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Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes by February The IRS today released Notice 1036 , which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The updated withholding information, posted today on IRS.gov, shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue ...
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Security Summit Partners Warn Tax Pros of Heightened Fraud Activity as Filing Season Approaches The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals of early signs that cybercriminals already are at work as the nation’s tax season approaches. Fraudsters are using a new round of emails posing as potential clients or even the IRS to trick tax practitioners into disclosing sensitive information. The Security Summit partners encourage tax practitioners to be wary of communicating solely by email with potential or even existing clients, especially if unusual requests are made. Data breach thefts have given thieves ...
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2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February. The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.  Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then ...
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The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22.  We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.    Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.  In the meantime, employers and payroll service providers should ...
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The Tax Cuts and Jobs Act (H.R. 1) has been approved by Congress and is on its way to the White House. H.R. 1, as approved by Congress, impacts virtually every individual and business on a level not seen in over 30 years. As with any tax bill, however, there will be "winners" and "losers."  This historic bill calls for lowering the individual and corporate tax rates, repealing countless tax credits and deductions, enhancing the child tax credit, boosting business expensing, and more.  The bill also impacts the Affordable Care Act (ACA), effectively repealing the individual shared responsibility requirement. Highlights: 37-Percent Top Individual Tax Rate ...
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The IRS will announce this afternoon that e-Services must be accessed via a Secure Access account.  The changeover will occur on the afternoon of December 10.   The IRS website will be updated with this information this afternoon, along with FAQs and other information.   The IRS encourages any practitioner who would like to use e-Services to register for a Secure Access account as soon as possible.  The IRS has set up an “exception” process for individuals who are unable to complete the registration process.  This process involves calling the IRS e-Services help desk and responding to various questions designed to verify the caller’s identity.  ...
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The Senate passed its version of the tax reform bill early Saturday morning on a vote of 51-49. The vote came after last-minute negotiations between Senate leadership and key holdouts who had concerns about the treatment of pass-through entities, the state and local tax deduction, and the effect the cuts would have on the budget. The legislation calls for a 20 percent corporate rate, a 23 percent deduction for pass-throughs, and rate cuts for individuals, though the pass-through and individual provisions are set to expire in 2026. One last-minute change retained the state and local tax deduction – up to a $10,000 property tax write-off—making the Senate bill ...
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The Senate Finance Committee approved its tax reform plan Thursday night by a party line vote of 14-12. The Committee wrapped up a four-day markup after defeating dozens of Democratic amendments. The plan, for which legislative language is still not available, would set a permanent 20 percent corporate rate beginning in 2019 and sunset many individual tax provisions in 2026. It would also give passthrough business owners a 17.4 percent deduction on their income. A manager's amendment introduced by Committee chairman Sen. Orrin Hatch near the end of the hearing Thursday night included changes to the tax treatment of carried interest similar to a provision ...
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House Republican leaders today formally introduced what they hope will be their signature legislative achievement in the 115th Congress: a sweeping tax reform bill that lowers individual and business tax rates, while also broadening the base by repealing or limiting many tax preferences. The "Tax Cuts and Jobs Act" is slated for consideration in the Ways and Means Committee starting at noon on Monday, November 6.  At or just before the start of the session, Chairman Kevin Brady (R-TX) will likely unveil a different version of the bill, reflecting additional input from lawmakers and outside interests, as well as technical corrections and clarifying edits to ...
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This is an update  on critical issues currently affecting e-Services users.    Because the IRS is still reviewing its contract options for an identity-proofing vendor, the move of e-Services to Secure Access authentication will be delayed. The transition was originally planned for later this month. As of today, we do not have a new date. We will communicate via Quick Alert as soon as a new launch date is set. Also, the technology upgrade of moving e-Services to a new platform continues. This means you are unable to take certain actions, like requesting an EFIN, viewing or updating an application. We recognize this is creating a hardship for some ...
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Secretary Mnuchin has announced that David J. Kautter, Treasury’s Assistant Secretary for Tax Policy, will serve as Acting IRS Commissioner when my term ends next month. As Treasury’s top tax official, Kautter oversees development and implementation of tax policies and programs as well as reviews regulations and rulings related to the Internal Revenue Code. In addition, he serves as the senior advisor to the Secretary of the Treasury on issues such as tax reform. Kautter has extensive experience in the tax community, spending more than three decades at Ernst and Young, including serving as director of national tax. He later became managing director of the ...
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The IRS is sending the following QuickAlert today to users of e-Services: The IRS today warned all e-Services users to beware a new phishing scam that tries to trick tax professionals into “signing” a new e-Services user agreement. The phishing scam seeks to steal passwords and data. All tax professionals should be aware that as e-Services begins its move later this month to Secure Access authentication and its two-factor protections, cybercriminals likely will make last-ditch efforts to steal passwords and data prior to the transition. Don’t take the bait! The scam email claims to be from “e-Services Registration” and uses “Important Update about Your ...
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The National Society of Accountants (“NSA”) is pleased to submit comments on the Exposure Draft of Proposed Section 14(q) of the Uniform Accountancy Act, or UAA. As you may know, NSA is a voluntary association of Certified Public Accountants, Enrolled Agents, licensed public accountants, and other financial professionals. A significant percentage of NSA members are subject to regulation by a state Board of Accountancy. NSA has long disagreed with the premise of Section 14(g), which is that the public is incapable of distinguishing between a certified public accountant and an accountant that is “enrolled,” “licensed,” “registered,” or “accredited.” Consequently, ...
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The House Ways and Means Committee this afternoon released a bill that would provide tax relief to those impacted by the recent hurricanes.  It is expected the bill will receive consideration in the House and Senate in the very near future. Enactment of the “ Disaster Tax Relief and Airport and Airway Extension Act of 2017” would provide the following targeted actions to help American families and communities impacted by Hurricanes Harvey, Irma, and Maria: Deduction for Personal Casualty Losses: With respect to uncompensated losses arising in the disaster area, eliminates the current law requirements that personal casualty losses must exceed 10 ...
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Brian L. Thompson, CPA, of Bailey & Thompson Tax & Accounting in Little Rock, AR was elected President of the National Society of Accountants (NSA) at its recent 72nd Annual Convention in Reno, NV. He will serve in the position for one year. Thompson has more than 20 years of experience as an accountant and served as NSA First Vice President last year, NSA Second Vice President the year before that, four years as NSA Secretary-Treasurer, NSA State Director in Arkansas, and Chair of the NSA Budget Committee. He has also served as President of the Arkansas Society of Accountants. He holds the credential of Certified Public Accountant (CPA). Thompson plans ...
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The IRS today released Announcement 2017-13  which provides relief to victims of Hurricane Irma, which caused damage to Florida and several other areas.  It permits easier access to victims’ funds held in workplace retirement plans and in IRAs, for the period beginning September 4, 2017, and ending January 31, 2018.  The relief provided in the announcement is in addition to the relief already provided by the IRS pursuant to News Release IR-2017-150. The full announcement has been reattached below. Relief for Victims of Hurricane Irma Announcement 2017-13 Purpose This announcement provides relief to taxpayers who have been adversely affected by Hurricane ...
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The Internal Revenue Service today warned people to avoid a new phishing scheme that impersonates the IRS and the FBI as part of a ransomware scam to take computer data hostage. The scam email uses the emblems of both the IRS and the Federal Bureau of Investigation. It tries to entice users to select a “here” link to download a fake FBI questionnaire. Instead, the link downloads a certain type of malware called ransomware that prevents users from accessing data stored on their device unless they pay money to the scammers. “This is a new twist on an old scheme,” said IRS Commissioner John Koskinen. “People should stay vigilant against email scams that try ...
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The Financial Accounting Standards Board on August 3 issued a proposed Accounting Standard Update (ASU) intended to clarify and improve the scope and the accounting guidance for contributions received and made, primarily by not-for-profits. FASB requested comments on the proposed ASU by November 1, 2017. According to FASB, the proposed ASU is intended to help organizations decide if transactions should be accounted for as a contribution or an exchange. Organizations would accomplish this by using clarifying guidance to evaluate whether a resource provider is receiving value in return for the resources transferred.  The proposed ASU also helps organizations ...
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The IRS has issued regulations updating the due dates and time extensions for filing certain tax returns and information returns to reflect recent laws. The changes are set out in final and temporary regulations (T.D. 9821) issued July 18 and will bring those dates into agreement with requirements in Section 2006 of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 and Section 201 of the Protecting Americans from Tax Hikes Act of 2015. The final and temporary rules: Amend Treasury regulations to account for the due dates for the income tax returns of C corporations specified by Section 2006(a) of the Surface Transportation ...
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