Category: Federal Tax Watch

2018 Year-End Tax Planning Letter

Dear Clients and Friends, Last December, Congress passed the Tax Cuts and Jobs Act which will greatly impact taxes for 2018. While the law was signed nearly a year ago, the Internal Revenue Service continues to issue regulations in response to tax professional questions in interpreting these new laws. Among the major changes: Lower individual … Continued

Business Expenses: Accountable vs. nonaccountable reimbursement

Employees frequently incur expenses in the course of their employment. Some expenses may be reimbursed by the employer, while others may be the expense of the employees. The type of reimbursement plan administered by the employer is important for employees because it can have a significant impact on the employees’ tax liability. A business may … Continued

Affordable Care Act increases many employers’ regulatory burden

The shared responsibility requirements for employers under the Affordable Care Act, otherwise known as the employer mandate, are laden with paperwork and fines. The employer mandate starts, though, with the requirement to provide employees with affordable health coverage. Many employers are now required to file information returns with the IRS and provide statements to their … Continued

Work abroad? IRS offers double taxation relief

The United States is one of the few countries in the world that uses a worldwide tax system, making U. S. citizens and green card holders subject to tax on all of their income, regardless of source. Most nations use a territorial regime, taxing only income derived within that country. A worldwide system subjects taxpayers … Continued