Tax Alerts


Self-Employment Tax for Partners of Partnership Owning Disregarded Entity

Wednesday, July 31, 2019

  Treasury Regulation (“Reg.”) Section 301.7701-2(c)(2)(iv)(B) generally provides that a disregarded entity is treated as a corporation for employment tax purposes. However, this rule does not apply for self-employment (SE) tax purposes. Therefore, the owner of a disregarded entity treated as a sole proprietorship is subject to tax on SE income. The IRS has issued […]

IRS Can Levy 100% of Social Security Benefits

Wednesday, July 31, 2019

  This article is reproduced with permission from Spidell Publishing, Inc. The IRS issued a levy to the Social Security Administration for 100% of a taxpayer’s monthly Social Security benefit and applied the payments toward the taxpayer’s nearly $20 million federal income tax liability. The taxpayer filed a lawsuit against the U.S. government to preclude […]

IRS Issues Draft 2020 Form W-4

Wednesday, June 26, 2019

  The IRS has issued a draft of its redesign of Form W-4, Employee’s Withholding Allowance Certificate. The revised form implements the changes affecting taxpayer withholding made by the 2017 Tax Cuts and Jobs Act. The IRS has also released FAQs about the redesign. The redesigned form no longer uses the concept of withholding allowances […]

Partial Tax Cuts and Jobs Act Conformity Legislation Sent to Governor

Wednesday, June 26, 2019

  This article is reproduced with permission from Spidell Publishing, Inc. The Legislature has passed AB 91, which conforms to several provisions in the Tax Cuts and Jobs Act (TCJA), generally effective beginning with the 2019 taxable year. The Governor is expected to sign the bill. California will conform to the provisions providing small business […]

New Depreciation Deduction Limits for Passenger Automobiles

Wednesday, June 26, 2019

  The IRS has issued the depreciation limits for business passenger automobiles placed in service in 2019. IRS has also released the annual income inclusion amounts for such vehicles first leased in 2019. The Tax Cuts and Jobs Act (TCJA) modified Internal Revenue Code (IRC) Section 168(k) to extend the additional (bonus) first-year depreciation deduction […]