Certified Public Accountants
& Business Consultants

Tax Compliance & Consulting News


Focus on Taxation & Real Estate: Tax Savings Related To Opportunity Zones

RubinBrown Partner Tony Nitti authored an article on the tax ramifications related to opportunity zones. This article appeared in The Tax Adviser. In summary, the article details that the newly created qualified opportunity zones offer an intriguing tax planning option for investors and a potential boon for distressed communities.


Focus on Taxation: Providing Clarity on Section 199A

RubinBrown Partner Tony Nitti recently took part in a nonpartisan tax think tank which debated the pros and cons of the new Section 199A, more widely known as the 20% pass-through deduction. 


Focus on Taxation:  Analysis of the New Tax Law

Last week, RubinBrown Partner Tony Nitti spoke on a panel that analyzed the new tax law, as well as the latest views about the law among taxpayers and journalists.


Focus on Taxation: Much Anticipated Final Regulations Issued on 199A

On January 17, 2019, the IRS delivered final regulations on one of the most complicated provisions of the new tax law, Section 199A, commonly referred to as the 20% pass-through deduction. The regulations provide clarity and much needed guidance on Section 199A that was enacted on December 22, 2017, as part of the Tax Cuts and Jobs Act. Along with the final regulations the IRS also issued two significant rulings; one allows a safe harbor for certain rental properties and the other a method of determining W-2 wages.


Focus on Taxation: IRS Provides Guidance on Employee Parking Provisions of New Tax Law

On December 10, 2018, the IRS issued long-awaited guidance on the application of one of the new tax provisions added by the Tax Cuts and Jobs Act, Section 274(a)(4). This provision under the Act is effective January 1, 2018. Notice 2018-99 provides guidance for taxable entities on how to compute the non-deductible amounts related to parking provided to employees under IRC Section 274(a)(4).


Focus on Taxation: Employers May Qualify for Tax Credits for Paid Family and Medical Leave

The 2017 Tax Cuts & Jobs Act grants employers who voluntarily offer qualifying employees up to 12 weeks of paid family and medical leave annually, a tax credit for a portion of wages paid in 2018 and 2019. In order to be eligible for the credit, the employer’s written policy containing specific language must be in place before the leave is taken.


Focus on R&E Tax Credits: New Tax Law Increases the Benefit of the Research & Experimentation Tax Credit

The Credit for Increasing Research Activities, also referred to as the “R&E”, “R&D” or “Research” tax credit, incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as promote job retention and expansion. The credit focuses on three types of qualifying expenditures: wages, supply costs and contract research.


Focus on Taxation: Guidance Issued for the Pass-Through Entity Deduction – Section 199A

On August 9, 2018 the IRS released guidance on new Code Section 199A, commonly referred to as the “pass-through entity deduction”. Code Section 199A allows business owners to deduct up to 20% of their qualified business income (QBI) from partnerships, S corporations, trusts and sole proprietorships.


Focus on State & Local Taxation: U.S. Supreme Court Overrules Physical Presence Standard

In the 5-4 decision of South Dakota v. Wayfair, Inc., the Supreme Court of the United States ruled South Dakota’s economic nexus law constitutional. The decision has the potential to require online retailers and other remote sellers to collect and remit sales tax to states in which they do business, regardless of their physical presence within those states.


Focus on Taxation: Bipartisan Budget Act of 2018 - Tax Extenders

On February 9, President Trump signed the Bipartisan Budget Act of 2018 into law. The Act contains an extension of over 30 otherwise expired tax breaks. The following is a listing to the tax provisions extended by the Act through 2017 (unless otherwise noted).


Focus on Taxation: Comprehensive Overview of the Tax Cuts and Jobs Act (H.R. 1)

RubinBrown is proud to provide a comprehensive overview of the Tax Cuts and Jobs Act (H.R. 1) that was signed into law on December 22, 2017. Read detailed information about the sweeping changes as well as the impact on individuals and businesses.


Focus on Taxation: Meals, Entertainment and Transportation Fringe Benefits May No Longer Be Deductible – May Require Immediate Action

Under tax law applicable for expenditures before January 1, 2018, generally meal and entertainment expenses were 50% deductible. With changes made with the recent legislation (H.R. 1) entertainment expenses are 100% NOT deductible for amounts paid or incurred after December 31, 2017.


Focus on Taxation: Tax Reform Update – International Taxes

The Tax Cuts and Jobs Act (the Act) is our first major re-write of the Internal Revenue Code since 1986. In regards to U.S. international tax law, the Act contains significant changes to how US based multinational corporations are taxed.


Focus on Taxation: Tax Reform Update – Businesses & Individuals

An agreement has been reached on a tax reform bill that is expected to go before the House and Senate for a final vote this week. The President is anticipating signing it into law before Christmas. The following is a summary of the key changes proposed.


Focus on Taxation: Tax Reform Proposal

On September 27, President Trump and Republican leaders unveiled a framework for tax reform. The following are the highlights of the changes contained in the proposal for individual and business taxes.


Focus on Taxation: Hurricane & Disaster Tax Relief

A number of RubinBrown clients either live in or have operations in states that have been affected by disasters during this year’s active hurricane season.  The IRS recently announced a number of tax relief initiatives for those individuals and businesses which have been affected by Hurricane Harvey and Irma.


Focus on State and Local Taxation: Fewer Hurdles, Faster Benefits for Missouri Works Training Program

Recently passed legislation expands upon the Missouri Works Training Program. Originally enacted in 2013, the program was established to consolidate Missouri’s workforce programs into a single streamlined program.


Focus on Taxation: 2017 Tax Reform

On April 26, 2017 the Trump Administration issued an outline on “2017 Tax Reform for Economic Growth and American Jobs” calling it “the biggest individual and business tax cut in American history”.


Focus on R&E Tax Credits: Interim Guidance Issued on Using the Research Tax Credit to Offset Payroll Taxes

On March 30, 2017, the IRS released interim guidance explaining how eligible small businesses can take advantage of the Research & Experimentation (R&E or R&D) tax credit by electing to offset their 2017 payroll tax liability instead of their income tax liability.


Focus on Taxation: March 24 Is Deadline For 1040 Tax Documents

It’s tax season and RubinBrown team members are hard at work for our clients! We thank you for your trust in us and your business. Although the tax deadline (April 18) is a month away, we are requesting 1040 client tax documents be to us by Friday, March 24. This will ensure we are able to file timely for you.


Focus on Taxation: New Deadline of FinCEN Report 114 - Report of Foreign Bank and Financial Accounts (FBAR)

In 2015, Congress made significant revisions to the due dates for filing many important and common returns, including FinCEN Report 114, Report of Foreign Bank and Financial Accounts (known as the FBAR).


Focus on Taxation: Update on Small Captive Insurance Companies

Current tax law allows business owners to create their own insurance company, to which the insured business makes premium payments and takes a deduction for those payments. If this insurance company, also commonly known as a “captive,” makes an election under Internal Revenue Code §831(b), net premiums received by the captive are not taxable.


Focus on Taxation: New Overtime Rules Scheduled to Take Effect December 1 Postponed Indefinitely

On November 22, U.S. District Judge Amos Mazzant indefinitely postponed implementation of the United States Department of Labor (DOL) overtime rules originally set to go into effect on December 1.


Focus on Taxation: 2016 Presidential Election Expected to Bring Tax Law Changes

President-elect Trump had made tax reduction a centerpiece of his economic plans during his campaign, saying he would, among other things, propose lower and consolidated individual income tax rates, expand tax breaks for families and repeal the Affordable Care Act.


Focus on R&E Tax Credits: Research Credit Enhancements Provide New Opportunities

Has your company considered claiming the Research and Experimentation (R&E) tax credit, only to be told you couldn’t because of the Alternative Minimum Tax (AMT)? If so, recent federal tax law changes for small business owners make it worthwhile to take a fresh look at the R&E credit.


Focus on State and Local Taxation: Arizona and Pennsylvania Tax Amnesty Programs

Arizona and Pennsylvania are offering tax amnesty programs to taxpayers. The Arizona program provides amnesty for individual and corporate income taxes for tax years ending before January 1, 2014 and transaction privilege (sales) taxes, including such taxes for program cities, for tax periods ending prior to February 1, 2015.


Focus on Taxation: Safe Harbor to Deduct 75% of Remodeling Costs (Retailers and Restaurants)

Have you remodeled your retail facility or restaurant since January 1, 2014? Or do you intend to undertake such a project in the near future for such a facility? If so, and if you have an audited financial statement, a simplified procedure may be available to you to automatically deduct up to 75% of these costs.


Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2015 and 2016

WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. Back in March, the IRS issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.


Focus on Taxation: Change to Minimum Salary Level to Qualify for Exempt Status

The Department of Labor (DOL) published its final rule concerning the minimum salary level necessary in most cases for an employer to qualify as exempt from overtime pay under the Fair Labor Standards Act (FLSA). In the absence of an exemption, the FLSA provides that an employee is entitled to receive pay at the rate of time and one-half for all hours worked over 40 in a week.


Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2015 and 2016

WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. The IRS recently issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.


Focus on Taxation: New Foreign Financial Asset Reporting Requirements

The IRS has recently issued new regulations which require "specified domestic entities" to report its interest in certain foreign financial assets on Form 8938, Statement of Foreign Financial Assets. The penalty for non-compliance is $10,000 per year.


Focus on Taxation: IRS Provides Relief to Missouri Storm Victims

On January 22, 2016, the Internal Revenue Service (IRS) announced that Missouri storm victims will receive tax relief.


Focus on R&E Tax Credits: Made Permanent with Improvements Coming in 2016

The Research & Experimentation Tax Credit, also referred to as the “R&E” or “Research” tax credit incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as to promote job retention and expansion. The credit focuses on three types of expenditures: qualified wages, supply costs and contract research.

Since its inception in the 1980’s, the research credit (along with other so-called “tax extenders”) has existed on a renewable basis; usually for two years, but only for one year in 2014. This made it challenging for companies to track the eligible expenditures for the credit, since it was not known if the credit would be in place when it came time to file for it.


Focus on Taxation:  President Obama Signs Tax Extenders Bill

On Friday, December 18, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015.


Focus on Taxation: 2015 Year-End Tax Planning

As we head into the last month of the calendar year, it is important to take note of the over 50 “temporary” individual and business tax provisions that have expired and may or may not be extended and retroactively reinstated before the end of the year.


Focus on Taxation:  Accelerated Deduction Opportunities

Have you addressed the requirements and evaluated the related opportunities afforded to your business under the Tangible Property Regulations (TPRs)?


Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2014

The IRS recently issued guidance and transition relief with Notice 2015-13 for those employers claiming the WOTC through December 31, 2014.  The WOTC is a Federal credit for employers that hire individuals from specific targeted groups.


Focus on Taxation:  What To Do If You Receive Correspondence From a Foreign Bank Asking for Personal Information

Many RubinBrown clients with bank accounts or other financial assets offshore have been receiving correspondence from the institutions holding those assets asking for personal information such as US social security numbers.  This article covers why you may receive these letters and what to do after you receive one.


Focus on Taxation:  One Year Extenders Package

On December 19, the President signed into legislation the Tax Increase Prevention Act of 2014.  The package includes provisions that extend for one year retroactively to January 1, 2014 and through December 31, 2014, some 54 expired tax provisions.  


Focus on Taxation: Reminders for Year-End Charitable Gifts

The Internal Revenue Service (in IR-2014-110) recently reminded individuals and businesses making year-end gifts to charity that several important tax law provisions have taken effect in recent years.


Focus on Taxation:  2014 Year-End Tax Planning

Year-end tax planning for 2014 must consider many important “temporary” tax provisions that have expired and may not be retroactively reinstated and extended before the end of the year. With the election now passed, Congress may or may not act to extend or reinstate various beneficial tax provisions.  


Focus on Taxation: Significant Tax Savings Opportunities with the Tangible Property Regulations 

All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the tangible property regulations that go into effect for tax years beginning on or after January 1, 2014.


Focus on Taxation:  Beware of Tax Scams Now That Filing Season Is Here

With the start of the 2014 tax season, the Internal Revenue Service is urging taxpayers to be aware that tax-related scams using the IRS name proliferate during this time of year.


Focus on Taxation: Revised Accounting Method Change Procedures Related to Tangible Property Regulations Issued

In September of 2013 the IRS issued final tangible property regulations that provided guidance on the application of Internal Revenue Code Sections 162(a) and 263(a) to amounts paid to acquire, produce, or improve tangible property. RubinBrown has previously communicated that in order to adopt these new regulations, which are generally applicable to tax years beginning on or after January 1, 2014, change in accounting method filings will be required. On January 24, 2014 the IRS provided revised procedures for making these filings.


Focus on Taxation: Expired Tax Provisions

While you are pulling together your information to prepare your 2013 income taxes, you should know about the tax provisions that expired at the end of the year. The following are among the more significant of these provisions.


Focus on Taxation: Final Regulations for Qualified Stock Dispositions Issued

The Internal Revenue Service (IRS) recently issued final regulations under Code Section (Sec.) 336(e) that allow individuals and partnerships, in certain circumstances, to step-up their basis in business assets acquired by stock acquisition.


Focus on Taxation: What to do Before Year End to Implement the New Tangible Property Regulations

The IRS issued the final tangible property regulations on September 13, 2013, modifying and superseding the temporary regulations that were issued on December 23, 2011. The tangible property regulations will apply to all taxpayers. It does not matter what form of business one is in, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return); these new rules and requirements will apply. Taxpayers will be required to file one or more Form(s) 3115 for each accounting method change for each separate entity, or trade or business.


Focus on Taxation: Final Tangible Property Regulations Issued

Should expenditures related to tangible property be expensed or capitalized?

This is the question that the IRS has addressed with its tangible property regulations, which has been the source of much confusion for many years.


Focus on Taxation: New Guidance for Domestic Production Activities Deduction

Internal Revenue Code Section 199 provides for a tax deduction equal to 9% of the lesser of the qualified production activities income of the taxpayer for the taxable year or taxable income for the taxable year. The taxpayer entitled to this deduction is often not clear when a contract manufacturing arrangement exists.


Focus on Taxation: Healthcare Law Imposes Excise Tax on Employers & Insurance Carriers

A new fee enacted through the new healthcare law to help fund the Patient-Centered Outcomes Research Institute (PCORI) must be paid by certain employers that sponsor self-insured health plans by July 31, 2013.

The first year of the fee is $1 per covered life per year, the second year the fee adjusts to $2 per covered life and then it's indexed to national health expenditures thereafter until it ends in 2019.


Focus on Taxation: Actions To Take Now Related To The New Tangible Property Regulations

The new tangible property regulations will provide the most dramatic change in tax law in the area of expenditure capitalization to affect for-profit businesses since the overhaul of the Internal Revenue Code in 1986.


Focus on Taxation: Colorado Pre-Certification of Enterprise Zone Credits

RubinBrown reminds its clients and contacts that for all businesses located in Enterprise Zones, Colorado requires pre-certification of eligibility for Enterprise Zone Credits. This became effective January 1, 2012.


Focus on Taxation: American Taxpayer Relief Act

On January 1, 2013, the Senate and House of Representatives passed the American Taxpayer Relief Act ("Act"). The President signed the Act into law on January 2, 2013. The summary below has been prepared by RubinBrown tax executives to highlight many of the implications of this legislation.


Focus on Taxation: What Will Change If Congress Doesn't Act

U.S. tax law will significantly change for both individuals and businesses as many tax provisions either expired at the end of 2011 or will expire at the end of 2012.

Unless new legislation is passed, the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, other than those made permanent or extended by subsequent legislation, sunset and won’t apply to tax years 2012, as well as subsequent years.


Focus On Taxation: Payroll Tax Cut Extension Signed – Now Through 2012

On February 22, President Obama signed legislation that extends the 2% payroll tax holiday that was enacted by the 2010 Tax Relief Act that was set to expire on March 1, 2012.


Focus on Taxation: Clarification on the 1099 Reporting Rules

Last year the President signed the 1099 Repeal Act, which eliminated two burdensome provisions related to 1099 reporting that were originally enacted in two separate tax acts passed in 2010. Accordingly, we have received several questions requesting guidance on the 1099 reporting requirements


Focus on Taxation: IRS E-Filing Requirements and Mailing Prohibition

As tax season kicks off, RubinBrown reminds our clients of the IRS e-filing requirements, as well as the IRS’ prohibition on specified tax return preparers mailing individual income tax returns to the IRS on behalf of clients after December 31, 2011.


Focus on Taxation: Payroll Tax Cut Extension Signed

On December 23, 2011, President Obama signed legislation that extends the 2% payroll tax holiday that was enacted by the 2010 Tax Relief Act that was set to expire on December 31, 2011.


Focus on Taxation: Businesses Should Prepare Now For Year-End Tax Provisions

As we approach the end of 2011, businesses should consider taking a fresh look at some of the tax incentives that are currently available but may expire at the end of the year, or may be modified if they survive.


Focus on Taxation: 1099 Repeal Bill Signed Into Law

President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (“1099 Act”) on April 14, 2011.


Focus On Taxation: Tax Extenders Bill Signed Into Law

President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 on Friday, December 17, 2010 (the "Act").


Focus On Taxation: Small Business Jobs Act of 2010 Signed Into Law

On Monday, September 27, President Obama signed into law the Small Business Jobs Act of 2010 (the Act). The Act includes a number of important tax provisions that are expected to affect large and small businesses, as well as individuals.


UPDATED! Focus On Tax: The New Healthcare Reform Bill

The Patient Protection and Affordable Care Act (H.R. 3590), was passed by Congress on Sunday and signed into law today, March 23, 2010, by President Obama.  This new healthcare legislation contains numerous tax provisions which may impact individuals and businesses. 


Focus On Tax: Hiring Incentives to Restore Employment (HIRE) Act

On March 18, 2010, President Obama signed into law the “Hiring Incentives to Restore Employment Act” (“HIRE Act”). The principal purpose of the HIRE Act is to create an immediate incentive for businesses to hire unemployed individuals.


Focus On Taxes: Haiti Relief Donations Qualify as 2009 Tax Deduction

People who make charitable contributions providing for earthquake relief in Haiti can take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return. This means you can receive an immediate tax benefit, rather than having to wait until you file next year’s return.


Focus On Taxes: Illinois Repeals Previous Replacement Tax Code Change

On December 16, 2009, Illinois Gov. Pat Quinn (D) signed legislation, effective immediately, repealing a law change that would have subjected businesses operating as professional service partnerships, LLPs or LLCs to an additional tax on profits.