Federal & State Tax News


IRS Provides Workbook for 2017TY Transition Tax; FAQs Updated

Tuesday, May 1, 2018

The IRS has issued Publication 5292, How to Calculate Section 965 Amounts and Elections Available to Taxpayers, which provides guidance for determining the new transition tax on untaxed foreign earnings for the 2017 tax year. BackgroundCode Sec. 965, as amended by the Tax Cuts and Jobs Act of 2017 ( P.L. 115-97), requires U.S. shareholders to pay a […]

Qualified Opportunity Zones Designated

Tuesday, May 1, 2018

The Treasury and the IRS have designated Opportunity Zones in 15 states and three territories. Private investments in these specific Qualified Opportunity Zones get preferential tax treatment under the Tax Cuts and Jobs Act (TCJA) of 2017 ( P.L. 115-97). BackgroundUnder the TCJA, the states, territories and possessions nominate low-income communities to be designated as Qualified […]

2018 Fiscal-Year Blended Tax Rates for Corporations

Tuesday, May 1, 2018

The IRS has issued guidance on the changes to the federal income tax rates for corporations under Code Sec. 11(b) and the repeal of the alternative minimum tax (AMT) for corporations by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97), and on the application of the Code Sec. 15 tax proration rules in determining the federal income tax […]

Additional Guidance on Foreign Earnings Transition Tax

Tuesday, May 1, 2018

The Treasury and IRS have issued another piece of guidance on the foreign earnings transition tax under Code Sec. 965. The new provision, which was enacted as part of the Tax Cuts and Jobs Act ( P.L. 115-97), imposes a transition tax on the untaxed foreign earnings of U.S. companies’ foreign subsidiaries by deeming those earnings repatriated. […]

IRS Outlines Guidance on Business Interest Deduction

Tuesday, May 1, 2018

The IRS has announced initial guidance for computing the business interest expense deduction under Code Sec. 163(j) effective for tax years beginning after 2017, and aspects that will be covered in future regulations. The deduction is generally limited to the taxpayer’s business interest income plus 30 percent of the taxpayer’s adjusted taxable income. The new limitation was […]