Tax Alerts


Section 199A Final Regulations: Some Answers, More Questions

Tuesday, February 5, 2019

Section 199A (199A), one of the key provisions of the Tax Cuts and Jobs Act signed into law in December 2017, provided a 20% deduction for qualified business income (QBI) for owners of pass-through businesses such as partnerships, S corporations, and sole proprietorships. Taxpayers soon began asking for guidance on how to implement this tax […]

Individual Income Tax Withholding

Tuesday, February 5, 2019

Guidance on 2019 Individual Income Tax Withholding Rules The IRS has provided interim guidance for the 2019 calendar year on individual income tax withholding from wages and withholding from retirement and annuity distributions. In general, certain 2018 withholding rules provided in Notice 2018-14, I.R.B. 2018-7, 353, will remain in effect for the 2019 calendar year, […]

Marijuana Dispensary Denied Business Expense Deductions

Tuesday, February 5, 2019

A nonprofit corporation that operates a legal medicinal marijuana dispensary in the state of California has not been allowed to claim business expense deductions under Internal Revenue Code (IRC) Section 280E. When filing its federal taxes, the organization had fallen afoul of IRC Section 280E. This section prevents any business or trade that involves trafficking a controlled […]

Guidance on Tax Benefit for Stock Options and Restricted Stock Units

Tuesday, February 5, 2019

The IRS has released initial guidance on the new Internal Revenue Code (IRC) Section 83(i), added by the 2017 Tax Cuts and Jobs Act. IRC Section 83 generally provides for the federal income tax treatment of property transferred in connection with the performance of services. IRC Section 83(i) allows certain employees to elect to defer […]

Foreign Tax Credit

Tuesday, February 5, 2019

Foreign Tax Credit Changes Addressed Highly anticipated foreign tax credit regulations have been issued that provide guidance on the significant changes made to the foreign tax credit rules by the Tax Cuts and Jobs Act (TCJA). The proposed regulations address: allocation and apportionment of the deductions under Internal Revenue Code (IRC) Sections 861 through 865, […]