Exempt Organizations May Not Need to Include Donor Information on Returns

Tuesday, October 2, 2018

Tax-exempt organizations, other than charities exempt under Code Sec. 501(c)(3), will soon be able to stop reporting the names and addresses of contributors on Schedule B when filing their information returns. Organizations exempt from tax under Code Sec. 501(a) that are required to file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form […]

North Carolina Victims of Hurricane Florence Granted Tax Relief

Tuesday, October 2, 2018

President Donald Trump has declared a federal disaster area in North Carolina. The disaster is due to Hurricane Florence, which began on September 7, 2018. The disaster area includes the following counties in North Carolina: Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Harnett, Lenoir, Jones, New Hanover, Onslow, Pamlico, Pender, Robeson, Sampson, and Wayne. […]

Six-Year Spread Applies to 481(a) Adjustments After Terminated S Corporation’s Accounting Method Change

Tuesday, October 2, 2018

New temporary rules clarify a six-year spread period for Code Sec. 481(a)adjustments after an eligible terminated S corporation changes from a cash to an accrual method of accounting. These rules apply if the corporation revokes its S corporation election during the two-year period beginning on December 22, 2017. Required Change in Accounting Method The six-year adjustment […]

IRS Provides Guidance on What Constitutes a Covered Employee

Tuesday, October 2, 2018

Taxpayers can rely on new guidance related to the limitation on the deduction for employee compensation in excess of $1 million. Specifically, the guidance addresses: the definition of a covered employee for purposes of Code Sec. 162(m)(3); what constitutes a binding contract under the grandfather rule in Code Sec. 162(m)(4); and what constitutes a material modification of […]

Qualifying Relative Definition Still Uses Inflation Adjusted Exemption Amount

Tuesday, October 2, 2018

The IRS clarified who is a “qualifying relative” for the new $500 dependent credit and head of household filing status for tax years 2018-2025. The new rules will continue to use the inflation adjusted exemption amount to define qualifying relative. Qualifying Relative Definition For 2018 through 2025, the personal exemption amount is zero. However, the Code uses […]