Blogs

Tax reform brings changes to real estate rehabilitation tax credit

By NSA Blogger
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The rehabilitation tax credit offers an incentive for owners to renovate and restore old or historic buildings. Tax reform legislation passed in December 2017 changed when the credit is claimed and provides a transition rule:  The credit is 20 percent of the taxpayer’s qualifying costs for rehabilitating a building. The credit doesn’t apply to the money spent on buying the structure. The legislation now requires taxpayers take the 20 percent credit spread out over five years beginning in the year they placed the building into service. The law eliminates the 10 percent rehabilitation credit for pre-1936 buildings. A transition rule provides relief ...
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IRS extends Oct. 15 and other upcoming deadlines, provides expanded tax relief for victims of Hurricane Michael

By NSA Admin
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Hurricane Michael victims in parts of Florida and elsewhere have until Feb. 28, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. The IRS is offering this relief to any Major Disaster Declaration area designated by the Federal Emergency Management Agency ( FEMA ) as qualifying for either individual or public assistance. Currently, this only includes parts of Florida, but taxpayers in localities added later to the disaster area, including those in other states, will automatically receive the same filing and payment relief. The current list of eligible localities is always available ...
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IRS issues guidance on Tax Cuts and Jobs Act changes on business expense deductions for meals, entertainment

By NSA Admin
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The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. Taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an employee of the taxpayer) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant or similar business contact. Food and beverages that are ...
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Court upholds validity of IRS Annual Filing Season Program

By NSA Blogger
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The US Court of Appeals for the DC Circuit today upheld the IRS Annual Filing Season Program, finding that the IRS had the legislative authority to develop and implement the Program under existing statute. The challenge to the Program was brought by the AICPA, which argued that the AFSP should be invalidated for two reasons:  it violates this same Courts opinion in the Loving case and also that the Program, which is implemented by means of a Revenue Procedure, is invalid because it was not subject to a notice and comment period as required by law. In its opinion, the Court noted that, “Consistent with its authority under § 330(a), and contrary to the AICPA’s ...
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IRS Notice 2018-64 Addresses Wage Calculation for 199-A

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Notice 2018-64 proposes a revenue procedure that provides guidance on methods for calculating W-2 wages for purposes of section 199A of the Internal Revenue Code (Code) and proposed §§ 1.199A-1 through -6 of the Income Tax Regulations (26 CFR part 1) which are being published contemporaneously.   Specifically, this notice provides methods for calculating W-2 wages (1) for purposes of section 199A(b)(2) which, for certain taxpayers, provides a limitation, based on W-2 wages, to the amount of the deduction qualified business income under section 199A; and (2) for purposes of section 199A(b)(7), which, for certain specified agricultural and horticultural cooperative ...
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IRS Releases Section 199-A Regulations

By NSA Blogger
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The IRS released the long-awaited guidance for 199-A, Qualified Business Income (QBI), this morning. This release contains proposed regulations concerning the 20% QBI deduction that impacts small businesses, individuals, partnerships, trusts and estates, and S-corps involved in domestic trades or businesses. The text of this update can be found here .
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IRS offers guidance on recent 529 education savings plan changes

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The Internal Revenue Service and Department of the Treasury today announced their intent to issue regulations on three recent tax law changes affecting popular 529 education savings plans . Notice 2018-58 , addresses a change included in the 2015 Protecting Americans From Tax Hikes (PATH) Act, and two changes included in the 2017 Tax Cuts and Jobs Act (TCJA). Taxpayers, beneficiaries, and administrators of 529 and Achieving a Better Life Experience (ABLE) programs can rely on the rules described in this notice until the Treasury Department and IRS issue regulations clarifying these three changes. Tuition refunds The PATH Act change added ...
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NSA Scholarship Foundation Announces Student Recipients

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More than $31,000 awarded to 25 Students Nationwide The National Society of Accountants (NSA) Scholarship Foundation has awarded 25 students scholarships to continue their college education. Combined, NSA scholarships for 2018 totaled $31,200. Since its inception in 1969, the NSA Scholarship Foundation has provided more than $1 million to deserving undergraduate and graduate students pursuing a career in accounting. The scholarships range from $500 - $2,500. Recipients were selected on the basis of scholastic achievement, demonstrated leadership ability, and financial need. “The NSA Scholarship Foundation assists dedicated students who are committed ...
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IRS Section 199A Regulations to Be Released “Mid-July”

By James Crawford
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Today, during a meeting at the IRS, the head of the IRS Tax Reform Office told NSA EVP John Ams that the 199A regulations will be released in mid-July. In addition to the expected release date, EVP Ams was also informed that the regulations would be delivered in proposed form, subject to comments and a hearing, and will exceed 200 pages in length. EVP Ams strongly suggests that NSA members should, "Be prepared!" to review the regulations when they become available, as the IRS expects taxpayers to rely on the proposed regulations until they are made final
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The Form 1040 Postcard Is Back

By James Crawford
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Treasury Secretary Mnuchin announced the department will unveil a new Form 1040, U.S. Individual Income Tax Return, next week that will come in the shape of a postcard  “as promised.” In the lead-up to the passage of the 2017 tax act ( Pub. L. No. 115-97 ), Republicans vowed that the tax code revamp would make filing taxes as simple as filling out a form the size of a postcard. Mnuchin's announcement came June 20 at a news briefing on Capitol Hill to mark the six-month anniversary of the tax overhaul. Critics of this idea have said that while the new law offers simplification in some areas, much of the complexity in the tax code remains. Even if taxpayers ...
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Financial Statement Critique at the Annual Convention

By NSA Blogger
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As a service to our members at the upcoming NSA Annual Convention in Minneapolis, the NSA Accounting Standards Committee will offer to critique financial statements prepared by your office. The statements will be critique based on generally accepted accounting standards and will include a one on one discuss of those statements. Our intent is to provide our members with an unbiased look at the financial statement products they produce.  The service may be particularly useful to members new to the production of financial statements or for those members scheduled for an upcoming peer review.  In order to make the service as accessible to as many members as possible, ...
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NSA Secretary Treasurer Candidates Sought

By NSA Admin
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Current Secretary Treasurer Curt Lee has announced his candidacy for NSA 2 nd Vice President and will forego the remaining year of his two year term in that position.  In accordance with NSA’s Bylaws—which require officer candidates to resign any current position they hold “no later than at the election” at the NSA Annual Convention in Minneapolis—Mr. Lee has submitted his resignation effective August 22. The NSA Board is now asking members interested in the position to declare their candidacy for the office of Secretary Treasurer for a 2-year term beginning on September 1. Information about the duties of the Secretary Treasurer is set out in NSA’s Bylaws ...
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Changes to the New Tax Bill One of Many Topics to be Presented at the NSA Annual Convention

By NSA Blogger
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Registration Now Open for NSA Convention, August 22-25, Minneapolis, Minn. The National Society of Accountants (NSA) Annual Convention bridges the gap between the signing of H.R.1-- Tax Cuts and Jobs Act and preparing tax professionals to understand how the changes will impact their clients. The event is slated for August 22-25 in Minneapolis, Minn. “Thus far, 2018 has been a very exciting and challenging year,” said NSA President Brian L. Thompson, CPA. “New tax changes made widespread changes to the Internal Revenue Code, impacting nearly everything from child tax credits to divorce calculations, and small business deductions to homeownership deductions. ...
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NSA Enrolled Agent Exam Prep Course August 20-22

By NSA Blogger
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Registration Open for NSA’s highly-acclaimed EA Exam Prep Course  in Minneapolis, prior to NSA National Conference   Accounting and tax professionals looking to take the Enrolled Agent (EA) Exam in 2018 can increase their success rate by participating in NSA’s highly-acclaimed Enrolled Agent Exam Preparation Course August 20-22, at the Minneapolis Marriott City Center. Future EA exams and supporting course materials will reflect changes under the new tax law. As such, the 2018 exam and prep course enables professionals to become an EA under previous tax laws. NSA's Enrolled Agent Exam Review Course is a comprehensive review geared toward a single ...
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IRS warns tax pros of new scam posing as professional associations

By James Crawford
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The IRS and its state and industry Security Summit partners today warned tax practitioners to beware of phishing emails posing as state accounting and professional association. The IRS this week received reports from tax professionals who received fake emails that were trying to trick them into disclosing their email usernames and passwords. Cybercriminals specifically targeted tax professionals in Iowa, Illinois, New Jersey and North Carolina. The IRS also received reports about a Canadian accounting association. The awkwardly worded phishing email states: “We kindly request that you follow this link HERE and sign in with your email to view this information ...
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IRS Reaching Out to EAs Who Have Not Renewed PTINs

By James Crawford
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Now that the enrollment renewal cycle has finished, the IRS Return Preparer Office will begin annual clean-up of those Enrolled Agents who have Social Security Numbers (SSNs) ending in 7, 8 or 9 or those who have no SSN and did not renew. Those who did not renew during the 2015 and 2018 cycles will be moved to terminated status. (2,000+) Those who did not renew during the 2018 cycle will be moved to inactive status. (5,000+) Letters will be sent to those whose status has changed advising them of IRS action. Any preparer in inactive status can still submit a late renewal for approval with proof of CE. Any preparer in terminated status must re-take the ...
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IRS Warns on Efforts To Avoid State and Local Tax Deduction Cap

By James Crawford
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The IRS today issued Notice 2018-54 , which announces forthcoming regulations that will address the "tax treatment of certain payments made by taxpayers for which taxpayers receive a credit against their state and local taxes."  A press release accompanying the notice is available here . Under the Tax Cuts and Jobs Act , the amount of state and local taxes individuals can deduct is capped at $10,000. Since the law's enactment late last year, several states have debated proposals to allow residents to contribute to certain entities to gain a credit (most often for a charitable contribution) against state and local taxes owed.  In particular, ...
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Candidate Announcement Period Opens May 1

By NSA Admin
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May is the time for anyone interested in running for NSA Officer or District Governor positions to submit their Candidate Announcement Form . Elections for office will be held later this summer, but if you have an interest in being considered for office, please submit your application between May 1st and June 1st. Positions open include the office of President First Vice President Second Vice President District Governor (Only Governors for even-numbered districts will be elected this year.) In addition, NSA is seeking candidates to serve as NSA State Director for states in NSA's odd-numbered districts. Candidates for State ...
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IRS, Security Summit Partners Warn of New Twist on Phone Scam

By NSA Admin
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IRS, Security Summit Partners Warn of New Twist on Phone Scam;  Crooks Direct Taxpayers to IRS.gov to “Verify” Calls The Internal Revenue Service today warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers to trick taxpayers into paying non-existent tax bills.   The IRS and its Security Summit partners – the state tax agencies and tax industry – urge taxpayers to remain alert to tax scams year-round, especially immediately after the tax filing season ends. Even after the April deadline passes, the tax scam season doesn’t end.   In the latest version ...
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IRS provides additional day to file

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IRS provides additional day to file and pay for taxpayers through Wednesday, April 18; IRS processing systems back online The IRS announced today that it is providing taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time. The IRS encountered system issues Tuesday morning. Throughout the system outage, taxpayers were still able to file their tax returns electronically through their software ...
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