An IRS Update: What Works and What Doesn’t During the Shutdown

  |  January 16, 2019

The IRS has announced that due to the lapse in appropriations that began on December 22, 2018, most IRS operations are closed during the shutdown.

Under a contingency plan covering the tax filing season, the IRS is recalling 57% of its workforce in order to handle some tax season duties. Their workforce will increase from 9,946 employees who have been working since the start of the shutdown, to 46,052 employees. This plan will allow the IRS to process tax returns and issue refunds, but limitations on other services remain remain.

Here is a list of the limited operations available during the appropriations lapse: Read more. Read More

The Redesigned Form 1040

  |  January 10, 2019

The IRS has redesigned the 2018 Form 1040, the U.S. Individual Income Tax Return. The new form will replace not only the current Form 1040, but also Forms 1040A and 1040EZ. Find out more about the updates to the form and what Schedules you may need to file this year, based on your circumstances. Read more. Read More

California Is On Board with Wayfair

  |  December 19, 2018

In the beginning of what may become a national rollout of the landmark South Dakota v. Wayfair Supreme Court decision from this past June, the state of California Department of Tax and Fee Administration (CDTFA) has announced its intention to use the Wayfair thresholds beginning April 1, 2019. “We know the legislature is also looking closely at this issue and we look forward to working with them as we proceed,” said Nick Maduros, CDTFA Director.

Starting April 1, out-of-state retailers selling above certain economic thresholds into California will be required to collect California use taxes on their sales into California. Read more. Read More

2018 Year-End Tax Planning Guides for Individuals and Businesses

  |  December 12, 2018

Nearly one year after the Tax Cuts and Jobs Act (TCJA), tax reform is still making headlines. We continue to learn more about its broad implications. Whether your previous tax filing posture was straightforward or complex, you will be impacted by the myriad of changes to the tax code.

Now more than ever, it is imperative to thoughtfully consider year-end tax planning opportunities, ensuring you are taking advantage of new tax strategies, staying compliant with new regulations and considering structures to help minimize taxes for future years.

Two Tax Letters from REDW are intended to assist you in that effort. Read more. Read More

AZ Department of Revenue to Require Electronic TPT Filing and Paying in 2019

  |  December 3, 2018

In 2019, the Arizona Department of Revenue (ADOR) will be taking another step in its ongoing drive to provide enhanced customer service through electronic filing and paying.

E-filing and paying is more secure and faster for taxpayers and critical for ADOR to deliver a more results-driven, customer-focused management system that produces enhanced services for Arizonans. Increasing electronic payments frees up additional ADOR resources to process tax returns and payments of all types much faster. It also further strengthens tax fraud prevention measures and enhances the taxpayer experience.

Most importantly for taxpayers, electronic filing and paying saves money. Read more. Read More

IRS Clarifies Rules for Business Meal Deductions

  |  November 15, 2018

The Tax Cuts and Jobs Act of 2017 eliminated the deduction for business entertainment expenses. What wasn’t as clear was the fate of business meal deductions associated with that entertainment. Now, in Notice 2018-76, the IRS has weighed in with guidance that preserves business deductions for meals incurred in connection with entertainment activities—as long as the meals meet certain requirements. Read more. Read More

The Potential Impacts of Tax Reform to Real Estate & Construction Companies

  |  September 10, 2018

On December 22, President Trump signed the tax reform bill, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018," into law, marking the largest change to U.S. tax policy since the 1980s.

With most of the provisions already in place, it is critical to understand the bill’s conference process and IRS regulations issued in 2018, as they will provide guidance on how to apply key provisions along with the intent of Congress in drafting the bill.

To help them navigate the key provisions affecting the real estate and construction industries, we’ve summarized the top considerations and industry implications below. Read more. Read More

Considerations for Business Entity Selection Under Tax Reform

  |  September 10, 2018

Ever since Congress enacted the Tax Cuts and Jobs Act in December, many business owners are reconsidering which business entity makes the most sense for their particular business. With the new, lower tax rate for C corporations, many pass-through entities, including S corporations, are reconsidering their structure to take advantage of the substantially reduced 21% corporate tax rate.

The Act also provided tax relief to S corporations (and other pass-through entities) in the form of a temporary business income deduction (with some limitations), so that’s what makes it complicated. It may not be worth switching after all. When it comes to choosing business entities, one thing hasn’t changed—it all depends on a number of factors. Read more. Read More