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IRS Releases 2019 Form to Help Governments Report Fines, Penalties, and Other Amounts

A new 2019 form has been issued by the Internal Revenue Service (“IRS”) to help governments and government entities comply with a portion of the Tax Cuts and Jobs Act (“TCJA”) involving reporting fines or penalties. Form 1098-F requires governments and related entities to disclose fines, penalties, or other amounts assessed against a taxpayer. Government agencies and related entities must file Form 1098-F with the IRS and the taxpayer to report information about the fine or court settlement, whether one or multiple payments will be made, and the total payments actually made by the taxpayer. The new form also requires that reportable penalties. Read More.

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Proposed State Legislation Addresses Charitable Giving Tax Credits

Several states are introducing bills to counter the negative effects of the Tax Cuts and Jobs Act, especially regarding charitable giving. The new tax law nearly doubles the standard deductions for individuals ($12,000) and couples ($24,000), which makes it less likely that taxpayers will claim itemized deductions when filing this year. Lawmakers in Kansas, New York and Virginia have proposed allowing taxpayers to claim itemized deductions on state returns, even when the standard deduction on federal returns is elected. The Virginia bill also proposes a nonrefundable tax credit to taxpayers that forgo itemizing deductions on federal returns. Arizona legislation has. Read More.

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Cherry Bekaert to Host Webinar on Section 199A Deduction

Are you struggling to understand the section 199A pass-through deduction introduced by the Tax Cuts and Jobs Act? If so, Cherry Bekaert encourages you to join us this Friday for our webinar! Led by Ron Wainwright, CPA , and Andrew Kosoy, CPA , this live course will help you understand the pass-through deduction and nuances within Specified Service Trades or Businesses (“SSTBs”). The webinar will also cover Internal Revenue Service-issued (“IRS”) guidance on methods for calculating W-2 wages for section 199A. By the end of the webinar, you will be able to: Identify opportunities for the section 199A pass-through deduction; Consider the nuances in SSTBs; Describe IRS. Read More.

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Tax Reform’s Impact on Colleges and Universities

One year after the passing of the Tax Cuts and Jobs Act, colleges and universities are still reeling from tax reform. Higher education leaders have sought guidance from the Internal Revenue Service and Treasury Department concerning key issues like the excise tax and Opportunity Zones. Institutions are uncertain of the long-term impact the new tax laws will have on donors. While a drop in major donations could be a problem for some institutions, some experts are skeptical that wealthier donors will close their wallets because of tax reform. More on tax reform’s impact on colleges and universities is available on the Inside Higher Ed website.

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FASB to Monitor Financial Reporting Impact of Tax Reform

The Financial Accounting Standards Board (“FASB”) has no plans to issue new guidance on the Tax Cuts and Jobs Act (“TCJA”). During a November 14 meeting on the financial reporting impact of tax reform, FASB researchers said Big Four firms’ guidance, FASB accounting staff’s technical inquiries, and U.S. GAAP have helped companies answer some of the complicated financial reporting issues caused by the tax law change. Despite holding off on issuing new tax reform guidance, the FASB still plans to monitor whether any necessary future action should be taken. The staff will especially keep a close eye on the global. Read More.

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End of SEC Tax Reform Grace Period Could Increase Disclosures

Last December after the Tax Cuts and Jobs Act (“TCJA”) was signed into law, the Securities and Exchange Commission (“SEC”) issued interpretative guidance that allows companies to use good faith estimates to adapt to the income tax effects. With the guidance expiring soon, the agency is advising businesses to apply the income tax disclosure requirements under U.S. GAAP once the grace period ends. SEC Staff Accounting Bulletin (“SAB”) No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, allows businesses to use reasonable estimates and provisional amounts to calculate the new tax law’s impact. SAB No. 118 also. Read More.

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