Vernoia, Enterline + Brewer, CPA LLC

Archive for September, 2015

IRS moves to end many automatic extensions for information returns

tax returnTo curb identity theft, new IRS regulations remove the automatic extension of time to file most forms in the W-2 series. Starting for 2016 information due in 2017, employers and other taxpayers will be allowed only a one-time 30 day non-automatic extension. Further, the IRS issued proposed regs to remove automatic extensions for many information returns outside the Form W-2 series. (more…)

Upcoming – reporting for estate property 2016

IRS delays uniform basis reporting for estate property until late February 2016

EstateThe IRS has delayed new uniform basis reporting requirements for estate tax property until February 29, 2016. The delay will give the IRS time to issue guidance so that executors, beneficiaries, and others can comply with the new reporting requirements. (more…)

When partner interests change

Final partnership rules add flexibility when partner interests change during the year

partnersThe IRS has issued major new regulations to control how partnership items must be allocated among partners whose interests in the partnership change during the partnership’s tax year. Among its changes, the final rules set forth an expanded scope of the so-called varying interest rule, which requires that partners’ distributive shares of partnership tax items for a tax year take into account the varying interests of the partners in the partnership during the tax year. (more…)

Post-breach identity theft protection services excluded from income

identity theftPost-data breach identity theft protection services will be excluded from recipients’ gross incomes, the IRS has announced. This treatment, however, does not extend to cases where an identity theft victim receives cash in lieu of identity protection services or proceeds under an identity theft insurance policy. (more…)

IRS launches Early Interaction Initiative to maintain payroll tax compliance

payrollThe IRS has announced that it has developed a new initiative to remind employers of their payroll tax obligations and to prevent the pyramiding of missed deposits. The Early Interaction Initiative will make expanded use of federal tax deposit alerts (FTD Alerts) to help taxpayers maintain payroll tax compliance. (more…)

How Do I? Form a partnership for tax purposes

A business operated by two or more owners can elect to be taxed as a partnership by filing Form 8832, the Entity Classification Election form. A business is eligible to elect partnership status if it has two or more members and:

  • is not registered as anything under state law,
  • is a partnership, limited partnership, or limited liability partnership, or
  • is a limited liability company.

Publicly traded businesses cannot elect to be treated as partnerships. They are automatically taxed as corporations. (more…)

FAQ: When must individuals pay estimated taxes?

estimated taxMany federal income taxes are paid from amounts that are withheld from payments to the taxpayer. For instance, amounts roughly equal to an employee’s estimated tax liability are generally withheld from the employee’s wages and paid over to the government by the employer. In contrast, estimated taxes are taxes that are paid throughout the year on income that is not subject to withholding. Individuals must make estimated tax payments if they are self-employed or their income derives from interest, dividends, investment gains, rents, alimony, or other funds that are not subject to withholding. (more…)