Newman Town, PLLC

Newsletters

February 26, 2021

Guidance on Business Deductions of PPP Loan Recipients
The IRS has issued guidance clarifying that taxpayers receiving loans under the Paycheck Protection Program (PPP) may deduct their business expenses, even if their PPP loans are forgiven. The IRS prev...

Information Reporting Waived for Nontaxable COVID Assistance
The IRS has waived the requirement to file Form 1099 series information returns or furnish payee statements for certain COVID-related relief that is excluded from gross income....

Relief for Automobile Lease Valuation Rule Users
Due to the COVID-19 pandemic, certain employers and employees who use the automobile lease valuation rule to determine the value of an employee’s personal use of an employer-provided automobile may ...

Relief for Certain Excess Business Loss-Related Underpayments
Estimated tax underpayment penalties under Code Sec. 6654 are waived for certain excess business loss-related payments for tax years beginning in 2019. The relief is available to individuals, as well ...

Period for Paying Deferred Employee Payroll Tax Extended
The IRS has extended the time period during which employers must withhold and pay the employee portion of Social Security tax that employers elected to defer on wages paid from September 1, 2020, thro...

Reporting Penalty Relief for Partnerships
The IRS has issued guidance that provides partnerships with relief from certain penalties for the inclusion of incorrect information in reporting their partners’ beginning capital account balances o...

Final Regs Address the Deduction Limit for Compensation in Excess of $1,000,000
Final regulations provide guidance related to the limitation on the deduction for employee compensation in excess of $1 million....

Additional Final Regulations on Section 163(j) Issued
The IRS has issued final regulations providing additional guidance on the limitation on the deduction for business interest under Code Sec. 163(j). The regulations finalize various portions of the pro...

Final Regulations Address Deductibility of Fines and Penalties
The IRS has released final regulations that address the changes made to Code Sec. 162(f) by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97), concerning the deduction of certain fines, penalties, and o...

Safe Harbor for Electing Real Property Trade or Business
The IRS has provided a safe harbor allowing a trade or business that manages or operates a qualified residential living facility to be treated as a "real property trade or business" solely for purpose...

Final Regulations Released on Small Business Simplified Accounting Rules
The IRS has released final regulations addressing the post-2017 simplified accounting rules for small businesses. The final regulations adopt and modify proposed regulations released in August 2020....

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.

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