For the 2018 tax filing year, there are new Internal Revenue Service (IRS) partnership audit rules [also adopted by the California Franchise Tax Board (FTB)] in which the partnership, not its members, will now be responsible for tax adjustments under audit. There is a very narrowly defined opt-out provision that many partnerships do not qualify for. Please consider amending the partnership operating agreement to designate a “partnership representative” to represent the company in disputes with the IRS or the FTB. Also, you should consider including language regarding the responsibility of tax audit adjustments pursuant to the three allowable methods: “amend”,
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Yearly Archives 2019
Estate & Trust Department Welcomes Three New Hires
As tax season starts, WFY welcomes three new hires to our Estate & Trust department: Lisa Marking, Heena Shah, and Ann Doan. We are pleased to welcome these new hires to the WFY team. Lisa Marking Lisa Marking joined Wright Ford Young & Co.’s Estate & Trust department as an Estate & Trust manager. She went to Pepperdine University to receive her undergraduate degree as well as her law degree. Lisa also attended University of Southern California to receive her Master’s degree in Taxation. During her free time, Lisa likes to travel and attending music concerts. Heena Shah This month,
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Rental Real Estate Owners-Guidance Related to the 20% Pass-through Deduction
On January 18, 2019, the IRS issued a notice providing “safe harbor” conditions under which rental real estate activities will be treated as a trade or business for purposes of the IRC Section 199A deduction. To qualify for the safe harbor: Separate Books and records must be maintained for each rental real estate enterprise. At least 250 hours of rental services must be performed by the taxpayer and/or workers for the taxpayer during the tax year for each rental real estate enterprise. To clarify, a real estate enterprise may be one rental or multiple rentals. Commercial and residential rentals cannot
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New International Tax Laws Now in Effect Under TCJA
Under the new tax changes for The Tax Cuts and Job Act (TJCA) there were several new provisions that impact US companies performing business internationally. Below are few selected key provisions. Under the Foreign Derived Intangible Income, or FDII, a deduction is created for certain foreign income earned by U.S. companies. This only applies to U.S. C-corporations with either a U.S. or foreign parent with an incentive to use U.S. workers. In result, this creates a preferential rate of 13.125% on qualifying foreign income, or QFI. QFI includes income derived from sale of property to foreign sources and, also, includes
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Industry News and Newsletter and Updates.
accountants, accounting, business, certified public accountant, corporation, cpa, fdii, foreign, foreign derived intangible income, gilti, global intangible low-taxed income, international, international business, international tax, profit, tax, tax firm, taxation, TCJA, territorial tax system, wfy, wirght ford young & co., and wright ford young.
accountants, accounting, business, certified public accountant, corporation, cpa, fdii, foreign, foreign derived intangible income, gilti, global intangible low-taxed income, international, international business, international tax, profit, tax, tax firm, taxation, TCJA, territorial tax system, wfy, wirght ford young & co., and wright ford young.
WFY Grows Tax Department Before 2018 Tax Season
WFY grows their firm with eight new hires: Michael Montgomery, Jennifer Nguyen, Karla Young, Alice Wang, Jeff Hwang, Linh Trinh, and Farheen Kolsy. All these new hires are joining WFY’s tax department as tax staff or tax interns. WFY is pleased to welcome these new hires to the WFY team. Michael Montgomery Joining the WFY tax staff is Michael Montgomery. Michael graduated from CSU Fullerton in 2015 and has a Bachelor’s degree in Business Administration, with a concentration on Accounting. With his experience in accounting, he has mainly worked in offices that specialize in small businesses and individuals. During the
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New IRS Partnership Audit Rules Prompt New Look at Operating Agreement
The IRS introduced a new set of partnership auditing rules which take effect in the financial year 2018 and are meant to make it easier for the agency to uncover and collect underpaid taxes from partnership entities. The previous audit system was challenging for the IRS because it was difficult to pin down who owed the tax under a complex partnership structure. Small partnerships with less than 100 members can opt out if no partner is a pass-through entity. The IRS will begin reviewing tax filings in line with the new procedure in 2019, so audits could start as soon
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