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FEDERAL TAX BRIEF

Federal Tax Posts for Decmeber 16th

IRS has proposed clarifications on how to treat certain contributions made to charity in return for state and local tax credits.

The IRS has proposed clarifications on how to treat certain contributions made to a charity in return for state and local tax credits. A provision of the Tax Cuts and Jobs Act limits an individual’s deduction for state and local taxes paid in a calendar year to $10,000. The new proposed regulations provide guidance on issues that remain unclear despite previous direction. They include: 1) treatment of business entity payments to certain entities, 2) treatment of payments by individuals with total state and local tax liabilities that were less than or equal to the U.S. tax code limitation and 3) application of the quid pro quo principle. Read the proposed regs: http://bit.ly/36zoFlI


Recent legislation generally requires tax-exempt organizations to e-file forms.

Recent legislation generally requires tax-exempt organizations to e-file forms. The Taxpayer First Act, enacted in July, requires nonprofits to electronically file information returns and related forms in tax years starting after July 1, 2019. Those who previously filed paper forms will receive a letter from the IRS informing them of the change. Filing deadlines vary by form type. For small exempt organizations, the law allows a postponement. For tax years ending on and before July 31, 2020, the IRS will accept either paper or electronic filing of Form 990-EZ. For tax years ending Aug. 31, 2020 and later, Forms 990-EZ must be filed electronically. Find out more details: http://bit.ly/2LUdLz1


taxpayers may want to check out a new IRS publication from the IRS. 'Publication 5348, Get Ready to File' can help individuals prepare for the tax-filing season

With the tax filing season almost here, taxpayers may want to check out a new IRS publication from the IRS. “Publication 5348, Get Ready to File” can help individuals prepare for the tax-filing season. It offers information and resources on electronic filing options, withholding, estimated tax payments, credits and deductions, data protection and tax refunds. Read the publication: http://bit.ly/2qTCzA1