Veterans Urged to Claim Refund for Tax Overpayments on Disability Severance Payments

Wednesday, August 1, 2018

The IRS has urged certain veterans who received disability severance payments after January 17, 1991, and included that payment as income that they should file Form 1040X, Amended U.S. Individual Income Tax Return, to claim a credit or refund of the overpayment attributable to the payment. Most veterans who received a one-time lump-sum disability severance […]

IRS Highlights “Security Six” Safeguards

Wednesday, August 1, 2018

The IRS, along with Security Summit partners, offered important tips dubbed “Security Six”protections to help tax professionals protect their computers and email as well as safeguard sensitive taxpayer data. The “Security Six” protections is the second in a series called “Protect Your Clients; Protect Yourself: Tax Security 101.” All tax professionals, whether part of a large firm or a one-person […]

IRS Unveils Draft Form 1040

Wednesday, August 1, 2018

Taxpayers will be able to file federal income taxes starting next filing season on a new postcard-sized Form 1040. The IRS officially released the draft 2018 Form 1040 on June 29. Draft Form 1040 The new base Form 1040 will be finalized this summer, an IRS spokesperson told Wolters Kluwer on June 29. The IRS […]

IRS Clarifies Estate and Trust Expenses Not Subject to Miscellaneous Itemized Deduction Suspension

Wednesday, August 1, 2018

The Treasury Department and the IRS plan to issue regulations clarifying that certain estate and nongrantor trust expenses remain deductible and are not subject to the miscellaneous itemized deductions suspension. As added by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97), Code Sec. 67(g) generally provides that miscellaneous itemized deductions subject to the 2-percent-of-adjusted-gross-income floor are […]

Preparer Due Diligence Rules Include Head of Household Eligibility

Wednesday, August 1, 2018

The IRS has proposed amendments to the tax preparer due diligence regulations to reflect a recent law change. The Tax Cuts and Jobs Act ( P.L. 115-97) expanded the scope of the due diligence penalty to apply to tax preparers who fail to use due diligence when determining a client’s head of household status. Preparer Due […]