Posts

Expect IRS Delays on Paper Filed Tax Returns
Hani Sharestan, CPA, MST
Tax Partner
In amidst of the 2021 tax season, you should expect delays from the IRS in processing paper filed tax returns that require manual processing.
Based on a recent published report, the…

Tax Update on Business Meals Being 100% Deductible in 2021
Angela Tang, CPA
Estate & Trust Supervisor
The cost of business meals were considered a deductible expense since 1986, the problem is only 50% of such costs were allowed as a deduction until now. The latest 2020 stimulus…

Employers with Over 50 Employees Must Register with CalSavers by June 30
By June 30, 2021, nonexempt employers with more than 50 California W-2 employees must register with the CalSavers program.
For exempt employers, if you've already offered a retirement plan, you do not have to participate in the program,…

Significant Tax Provisions from Biden’s American Rescue Plan Act
Richard A. Huffman, CPA, MST
Tax Partner
The American Rescue Plan Act signed into law by President Biden includes the following significant tax provisions:
Business tax provisions:
Family and sick leave credits –…

New Partnership Audit Rules for 2018 Tax Filing Year
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…

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:
…

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…

Making Large Gifts Now Won’t Harm Estates After 2025
On November 20th, the IRS announced individuals taking advantage of the increased gift and estate tax exclusion amounts in effect from 2018 to 2025 will not be adversely impacted after 2025 when the exclusion amount is scheduled to drop to levels…

IRS To Issue More ACA Penalties
The IRS began issuing Affordable Care Act (ACA) penalty assessments in its Letter 226J tax notice in November 2017. These notices are being sent to employers who the IRS identified through its recently developed Affordable Care Act Compliance…

Avoid Scammers: How the IRS Does and Does Not Contact Taxpayers
In order to help taxpayers avoid scams in which criminals impersonate IRS employees, IRS has issued a Fact Sheet in which it sets out the ways that it does and does not contact taxpayers. The IRS has been publishing this sheet for years to…

What Is an Offer in Compromise with the IRS?
An offer in compromise can make you happy: "Oh boy, the IRS said yes, and my tax debts are over!" Or it can frustrate you. Let's go over how to navigate the IRS settlement guidelines and see what an offer in compromise entails.
Here's the good…

Estate and Gift Tax 2018 Inflation Adjustments
On October 19th, the IRS issued Revenue Procedure 2017-58, the annual inflation adjustments for 2018 for many tax provisions, including exemptions for estate, gift and generation-skipping transfer (GST) taxes as well as the annual exclusion…