IRS issues guidance on extended time for levy challenges

Individuals and businesses have additional time to file an administrative claim or to bring a civil action for wrongful levy or seizure, according to the IRS. An IRS levy permits the legal seizure and sale of property including wages, money in bank or other financial accounts, vehicles, real estate and other personal assets to satisfy […]

Law change affects moving, mileage and travel expenses

The Internal Revenue Service (IRS) today provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act (P.L. 115-97) that affect: move-related vehicle expenses; un-reimbursed employee expenses; vehicle expensing. Changes to the deduction for move-related vehicle expenses The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax […]

IRS to bring back aggregation for information return filing

The IRS has issued proposed regulations amending the rules for determining whether information returns must be filed using magnetic media (electronically). The proposed regulations would require that all information returns, regardless of type, be taken into account to determine whether a person meets the 250- return threshold and, therefore, must file the information returns electronically. […]

Alabama amnesty begins July 1

The 2018 Alabama tax amnesty application period opens on July 1, 2018 (see Payroll Management Guide Report Letter 1514/2547, dated March 13, 2018). It runs through September 30, 2018. The Department of Revenue has launched a website dedicated to the program. The amnesty applies to taxes either: (1) due before January 1, 2017; or (2) […]

Value of tuition waiver benefit was income

An individual was required to include in gross income the value of a tuition waiver benefit received during the tax year at issue. The taxpayer received the tuition waiver benefit for his son from a qualified educational institution. However, the taxpayer did not present any evidence other than a Form W-2 issued by the educational […]

Employer appropriately withheld taxes from employee’s wages

An employer appropriately withheld taxes from an employee’s wages and paid the wages to the IRS because the IRS directed the employer to do so. The pro se employee’s claim to have his employer honor the Form W-4 the employee submitted for exemption from taxes was rejected. The employer was specifically directed to disregard the […]

IRS requests comments on Forms 1099-R and 1096

The IRS is requesting comments on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.; and Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Written comments should be submitted on or before July 10, 2018, to Laurie Brimmer, Internal Revenue Service, Room 6526 (for Form 1099-R), and to […]

IRS issues 2019 HSA inflation amounts

The IRS has released the 2019 inflation-adjusted amounts for health savings accounts under Code Sec. 223. For calendar year 2019, the annual limitation on deductions under Code Sec. 223(b)(2) for an individual with self-only coverage under a high-deductible plan is $3,500 ($7,000 for an individual with family coverage). A “high-deductible health plan” is defined in […]

Potential implications of expanding private disability insurance

Social Security Disability Insurance (SSDI), which is administered by the SSA, provides financial and other assistance to qualifying individuals who are unable to work due to their disabilities. SSDI is primarily funded by employee and employer payroll taxes that are placed in the Disability Insurance Trust Fund, which is currently projected not to be able […]

IRS highlights WOTC for employers

IRS highlights WOTC for employers The IRS is reminding employers to avail of the Work Opportunity Tax Credit (WOTC). The WOTC is generally based on wages paid to eligible workers. Special calculation rules apply for summer youth, veterans and long-term family assistance recipients. Categories. There are different categories of WOTC-eligible workers. The newest category, qualified […]