Newman Town, PLLC

Newsletters

October 22, 2020

Guidance Released on Employee Payroll Tax Deferral
The Treasury and IRS have issued guidance on the recent order by President Trump to defer certain employee payroll tax obligations on wages paid from September 1, 2020, through December 31, 2020. Unde...

2020-2021 Special Per Diem Rates Released
The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from ho...

Final Regulations Limit Dividends Received Deduction
The Treasury and IRS have issued final regulations that limit the Code Sec. 245A dividends received deduction and the Code Sec. 954(c) exception on distributions supported by certain earnings and ...

Distributions by Terminated S Corporations Addressed in Final Regs.
Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after a...

Final Regs. Clarify Ratable Rehabilitation Credit is Still a Single Credit
Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is t...

Final Regulations Update Definition of Qualifying Relative
The IRS has released final regulations that clarify the definition of a "qualifying relative" for purposes of various provisions for tax years 2018 through 2025. These regulations generally affect t...

Medicaid Coverage of COVID Testing Is Not Minimum Essential Coverage
The IRS has announced that Medicaid coverage of Coronavirus Disease 2019 (COVID-19) testing and diagnostic services is not minimum essential coverage for purposes of the premium tax credit under Code...

IRS Clarifies Provisions of the SECURE and the Bipartisan American Miners Acts
The IRS has released guidance in the form of questions and answers with respect to certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and the Bip...

Final Regulations Provide Additional BEAT Guidance
Final regulations provide additional guidance on the base erosion and anti-abuse tax (BEAT) under Code Sec. 59A. The regulations also address certain aspects of the BEAT under Code Secs. 1502 and ...

President signs Highway Bill revising return due dates, making other compliance change
President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 on July 31. The Act revises some important return due dates, overrules a Supreme Court tax dec...

Busy tax agenda awaits Congress’ return after August recess
Congress returns to work in September with a full agenda of tax legislation. Lawmakers will search for revenue to pay for a long-term federal highway and transportation bill, debate the fate of popula...

Developments continue to impact the mortgage interest deduction
The mortgage interest deduction is widely used by the majority of individuals who itemize their deductions. In fact, the size of the average mortgage interest deduction alone persuades many taxpayers ...

FAQ: When must individuals pay estimated taxes?
Many 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 fro...

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 ...

September 2015 tax compliance calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals...

Tax extenders take first steps to passage before Congress breaks for August recess
Just before Congress recessed for its August break, a package of tax extenders was approved by the Senate Finance Committee (SFC). The House and Senate both struggled to find ways to pay for a multi-y...

Preliminary filing season stats show successes and challenges for IRS
Preliminary information from the 2015 filing season shows a mixed bag of success and failures for the IRS. The IRS successfully processed returns and issued refunds, taking into account new requiremen...

Lawmakers hear from small businesses about tax complexity, compliance
Small business tax reform was the topic of two Congressional hearings in July. House and Senate lawmakers heard from small business owners and leaders in the tax and accounting area about concerns ove...

FAQ: Can an S corporation own an interest in another business entity?
An S corporation may own an interest in another business entity. An S corporation can be a member of an affiliated group by owning 80 percent or more of the stock of a C corporation. The group then ca...

How do I? Compute withholding using the part-year employment method
Employers generally withhold from wages by way of the wage-bracket or percentage method (Code Sec. 3402(b) and Code Sec. 3402(c)). However, an employee may request that the amount of tax withheld by t...

August 2015 tax compliance calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals...

Supreme Court upholds ACA Code Sec. 36B premium tax credit regs
After months of waiting, the U.S. Supreme Court announced its decision on the fate of the Code Sec. 36B premium assistance tax credit on June 25 in King v. Burwell, 2015-1 ustc ¶50,356. In a 6 to 3 d...

Supreme Court's same-sex marriage decision affects federal, state taxation
The Supreme Court’s decision in Obergefell v. Hodges (2015-1 ustc ¶50,357) on June 26, 2015 continues what was set in motion in 2013: the expansion of tax benefits to same-sex married couples. In O...

Treasury, IRS get moving on ABLE account rules
Late in 2014, Congress passed and President Obama signed into the law the Achieving a Better Life Experience (ABLE) Act. The new law, which enjoyed strong bipartisan support, authorizes the creation o...

How Do I? Determine when the "at risk" rules apply to my business
Taxpayers that invest in a trade or business or an activity for the production of income can only deduct losses from the activity or business if the taxpayer is at risk for the investment. A taxpayer ...

FAQ...Can I deduct the cost of sending my child to summer camp?
Now that summer is officially here and the main filing season is out of the way, tax planning may be far from your mind. However, typical summer traditions can yield tax benefits. For example, when sc...

July 2015 tax compliance calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals...

Lawmakers add tax measures to trade package, approve other tax bills
Tax provisions are often included as revenue raisers in non-tax bills and this year is no exception. A massive trade package making its way through Congress contains a number of tax measures, impactin...

How the IRS resolves an identity theft case
The IRS has responded to criticism from the Treasury Inspector General for Tax Administration and the National Taxpayer Advocate, among others, that resolution of identity theft accounts takes too lon...

Newman Town provides Financial Statement, Tax and Advisory Services.

At Newman Town we know you have a choice in deciding who you want to do business with. Simply, we serve our clients by providing the highest level of service. We use a proactive approach in providing advisory services that brings quality solutions that not only helps our clients solve their unique challenges, but strives to look for ways to improve their financial capabilities for the long term.

Throughout our careers, we have exemplified one key component: Service Excellence. As a result, you can expect for us to not just meet your needs, but can count on a long term relationship that will grow as your business grows with our commitment to Honesty, Integrity, Respect, & Credibility.