The Tax Professionals Blog

Businesses and State SALT Workarounds

Posted by Lee Reams Sr. on

Several states, in an effort to circumvent the $10,000 limit on state and local tax deductions imposed by the TCJA, have established charitable funds and then give contributors to the funds a credit, based on a percentage of the amount contributed, against their state, and in some cases, local taxes. The result is a conversion of a limited tax deduction into a charitable contribution deduction. IRS has issued proposed regulations that squash these attempted workarounds. The regs, which apply to post-8/27/18 contributions, specify the charitable contribution in these cases is the difference between the contribution amount and the tax credit.

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IRA-to-IRA Rollover Waiting Period Consequences

Posted by Lee Reams Sr. on

As sure as the sun rises every morning you stand a good chance of encountering a taxpayer who has violated the one rollover a year rule for IRAs. This article includes how that rule is applied, exceptions to the rule and the tax consequences.

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Governor Signs New bill affecting CRTP Tax Preparers

Posted by Lee Reams Sr. on


On September 20, 2018, Governor Brown signed into law Assembly Bill 3143 which modifies the laws affecting CTEC preparers.

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Surrogacy Fees and Taxes

Posted by Lee Reams Sr. on

You won’t run across it very often, because the number of surrogacies compared with conventional births is very small. Generally, surrogacy arrangements are made through surrogacy agencies. Surrogacy is a legal arrangement – the surrogate mother, the parents and the agency all have entered into a binding contract and in the event of a breach of that contract, can be held to the terms of the agreement.

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Mismatched W-2 Notices

Posted by Lee Reams Sr. on

Your business clients may begin receiving notices in 2019 from the Social Security Administration (SSA) related to Forms W-2 (Wage and Tax Statement) they submitted that contain name and Social Security number (SSN) combinations that do not match the SSA’s records. The SSA refers to these notices as Educational Correspondence (EDCOR).

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