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Business travel per-diem rates

The simplified per-diem rates are increasing for post-9/30/18 business travel. The IRS issued a notice of the “high-low” simplified per-diem rates for post-9/30/18 travel. The high-cost area per-diem increases to $287 (from $284) and the low-cost area per-diem increases to $195 (from $191). Under the high-low substantiation method, there’s one uniform per-diem rate for all…

Innocent spouse

2018 – 10/01 In general, married taxpayers who file joint tax returns are jointly and individually liable for the tax due on them. But spouses may be eligible for “innocent spouse” relief if they can prove they didn’t know about a tax understatement. In one new case, the U.S. Tax Court ruled that a disabled…

IRS Clarifies Employee Moving Expenses

2018 – 09/24 The IRS announces that employer reimbursements in 2018 for qualifying pre-2018 employee moves are tax-free. Clarifying the effects of the Tax Cuts and Jobs Act (TCJA), the IRS states that employer payments in 2018 for employee moving expenses incurred prior to 2018 are excluded from the employee’s wages for tax purposes. The…

Tax Reform 2.0

2018 – 09/25 Tax Reform 2.0 may move forward in the U.S. House this week. The House Rules Committee on 9/26 is scheduled to consider the three bills composing the Republicans’ tax package. The bills are titled the “Protecting Family and Small Business Tax Cuts Act of 2018,” the “Family Savings Act of 2018,” and…

Businesses aren’t immune to tax identity theft

Tax identity theft may seem like a problem only for individual taxpayers. But, according to the IRS, increasingly businesses are also becoming victims. And identity thieves have become more sophisticated, knowing filing practices, the tax code and the best ways to get valuable data. How it works In tax identity theft, a taxpayer’s identifying information…

Tax Reform 2.0

2018 – 9/14 The House Ways and Means Committee on Thursday passed a “Tax Reform 2.0” bill along partisan lines. The full U.S. House is expected to take up the tax measures at the end of September or sometime in October. It’s not expected that the Senate will vote on the three bills that comprise…

Business Deductions: Providing the Proof

2018 – 9/14 Taxpayers couldn’t substantiate business deductions. A married couple deducted car and truck expenses for their home-building S corporation’s alleged use of a passenger vehicle. But the IRS and the U.S. Tax Court denied them. The taxpayers didn’t provide a log or other evidence showing the business use of the vehicle. The court…

Deductions & Charity Payments

2018- 9/10 Can your business still deduct payments to charities or government entities for which you receive state and local credits when you file your federal tax return? Under the Tax Cuts and Jobs Act (TCJA), the rules have changed, beginning in 2018. In response, the IRS added a frequently asked question section to its…

Tax Reform 2.0 Universal Savings Account

2018- 9/7 The House Ways and Means Committee has provided additional details on what to expect in its “Tax Reform 2.0” proposed legislation. In addition to making permanent individual and small business tax cuts, the proposals would create a savings tool called a Universal Savings Account; allow the money in Section 529 education accounts to…

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