Utah updates guidance on pass-through entity withholding

For corporate income tax purposes, the Utah Tax Commission has updated its guidance on pass-through entity withholding. Effective for tax years beginning on or after January 1, 2009, pass-through entities must withhold Utah income tax on income from Utah sources for nonresident individual partners, members and shareholders, and for resident and nonresident nonindividual partners, nonindividual […]

State Department employee could not exclude foreign income

A U.S. citizen working in Germany for the U.S. Department of State under a personal services agreement (PSA) was a U.S. government employee for federal income tax purposes. Therefore, he was not entitled to the foreign earned income exclusion for wages he received. Foreign earned income exclusion. Under Code Sec. 911, a qualified individual can […]

IRS extends deadlines, provides tax relief for hurricane victims

Hurricane Florence victims in parts of North Carolina and elsewhere have until Jan. 31, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service has announced. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual […]

WK projects annual inflation amounts for 2019

Annual inflation-adjusted amounts for tax year 2019 are projected y Wolters Kluwer. The projected amounts include 2019 tax brackets, the standard deduction, alternative minimum tax amounts, among others. The projected amounts are based upon Consumer Price Index figures released by the U.S. Department of Labor on September 12, 2018. The Tax Cuts and Jobs Act […]

IRS updates 402(f) notice safe harbor language

The IRS has updated its safe harbor Code Sec. 402(f) notice explanations for recipients of eligible rollover distributions. The updates reflect legislative changes and guidance since the IRS last updated these explanations in 2014. Notice 2014-74, I.R.B. 2014-50, 937, is modified. Changes in the safe harbor explanations. The updated safe harbor explanations reflect the following […]

Small businesses and self-employed urged to meet tax obligations

The IRS reminded small business and self-employed taxpayers of meeting their tax obligations, including making quarterly estimated tax payments. Sole proprietors, partners and S corporation shareholders are advised to perform a “Paycheck Checkup” using the Withholding Calculator in order to determine the correct withholding amount and thereby avoid an unexpected year-end tax bill and possibly […]

Retirees urged to use withholding calculator to avoid penalty

The IRS has urged retirees to perform a “paycheck checkup” using the Withholding Calculator to verify that they were having the right amount of tax withheld from their pensions and annuity checks. This guidance is part of the “Paycheck Checkup” campaign aimed at encouraging taxpayers to promptly check their tax situation. Taxpayers have at their […]

Taxpayers urged to avoid penalty for tax underpayment

The IRS advised taxpayers to plan ahead and understand their options in order to avoid a penalty for underpayment of tax when they file early in 2019. The guidance is part of the Service’s broader “Paycheck Checkup” campaign to encourage taxpayers to check their tax situation, including withholding and estimated tax payments. Taxpayers can make […]

IRS adjusts Pub. 1494 levy amounts for head of households

The IRS has adjusted the amounts exempt from levy for head of households contained in IRS Pub 1494. The amount for daily with three exemptions is now $171.11. The amounts for weekly with 2, 3, 4, and 5 exemptions are: $505.77, $585.58, $665.39, and $745.20, respectively. In addition, for married filing jointly, daily, with 2 […]

Interest rates remain the same in the fourth quarter of 2018

The IRS has announced that interest rates will remain the same for the calendar quarter beginning October 1, 2018. The interest rates will be 5% for overpayments (4% in the case of a corporation) and underpayments, 7% for large corporate underpayments and 2.5% for the portion of a corporate overpayment exceeding $10,000. The interest rates […]