Individual clients that are on extension for the 2018 personal income tax returns have until the extended due date, October 15, 2019, to roll over amounts related to outstanding loans from a retirement plan that were treated as deemed distributions if they left their employment during 2018. As discussed in our post on March 28, 2019, the Tax Cuts and Jobs Act changed the rules for deemed distr...
With data breaches constantly in the news, it is essential for practitioners to make sure that they secure the networks and data for their firms. Make sure that your IT provider or personnel are constantly monitoring your system, updating your firewalls, operating systems, antivirus software and other protective systems. Also make sure to regularly test your backup system, to make sure that ...
As discussed in our May 14, 2019 post, New York State retroactively changed certain income tax rules for trusts and estates as of January 1, 2018. For taxable years beginning after December 31, 2017, Form IT-205, Fiduciary Income Tax Return, permits a subtraction adjustment/deduction for taxes (other than state and local sales and income taxes) that exceed the $10,000 limitation on federal For...
The IRS has announced when its e-file system will be offline during July and August. Unlike most system maintenance periods, which occur mainly over weekends, the first of these upcoming blackout periods will include multiple weekdays. The first blackout period will be from 12:01 AM Eastern Time on Thursday July 18, 2019 through 12 PM Eastern Time on Monday July 22, 2019. The second black...
Beginning in July, some tax software will require two-factor authentication for users to log into their tax preparation software. This will be in addition to the usual password requirement. (Beginning with the version for the 2016 tax year, most tax software began requiring users to enter a password to log into the software.) This new requirement will add an additional layer of security an...
Recently, the IRS announced that the Schedule D Tax Worksheet that was contained in the Instructions for Schedule D for the 2018 version of Form 1040 contained an error. The error affected taxpayers with capital gains subject to the maximum rate of 25% or 28%. Such gains are reported on lines 18 or 19 of the 2018 version of Schedule D and can result from the sales of depreciable real estate,...
As discussed in our March 26, 2019 post, in late March of 2019, The IRS announced additional retroactive relief for some taxpayers who might otherwise have been subject to the penalty for underpayment of estimated taxes. However, since many taxpayers had already filed returns for the 2018 tax year before this additional relief was announced, the late relief created a complication for taxpayers ...
As part of the budget legislation that was recently enacted by New York State for the fiscal year that began on April 1, 2019, the New York State income tax rules for trusts and estates have been retroactively changed as of January 1, 2018. For taxable years beginning after December 31, 2017, Form IT-205, Fiduciary Income Tax Return, will now permit a subtraction adjustment/deduction for taxes...
Recently, New York State has sent erroneous notices to numerous taxpayers regarding their 2018 personal income tax refunds. In this situation, the taxpayer has already received the refund requested on the taxpayer’s 2018 New York State personal income tax return. However, after receiving the refund, the taxpayer receives a notice that indicates that the allowable refund for the 2018 tax ye...
As practitioners prepare extensions for the upcoming filing due date, it is important to tell clients about estimates used in computing the amount due for the extension. For example, if a client has not yet received a Schedule K-1, it is important to tell the client that an estimate of the income from that missing K-1 was used to compute the amount due with the extension. It is also importan...
