TaxConnections


 

Tag Archive for aicpa

Extended Due Date For Calendar Year Corp – What?

Annette Nellen

In 2015, Congress changed the due date for several types of entities as well as for the FBAR (for foreign financial accounts). The AICPA has a wonderful chart with all of the new dates noted.

When Congress made the changes for C corporations, they apparently had a concern with a change that would move a due date from one government fiscal year into the next fiscal year. The federal government’s fiscal year ends September 30.

Read more

AICPA Requests Administrative Guidance By Dept Of Treasury

Peter Scalise

The American Institute of Certified Public Accountants (hereinafter “AICPA”) has requested the Department of the Treasury and the Internal Revenue Service (hereinafter the “Service”) to issue some form of immediate administrative authority governing the enhanced R&D Tax Credit Program (hereinafter “RTCP”) in connection to qualifying Small Businesses and qualifying Start-Up Companies to accurately calculate the R&D Tax Credit from a quantitative perspective effective for tax years beginning on or after January 1, 2016.

Read more

AICPA Real Estate & Construction Conference – Construction Tax Planning Panel Discussion

Peter Scalise

2017 AICPA Real Estate & Construction Conference

Save The Date: December 7th – December 9th, Las Vegas, NV

Join Peter J. Scalise, the Federal Tax Credits & Incentives Practice Leader for Prager Metis CPAs, at the upcoming AICPA Real Estate & Construction Conference at the Wynn in Las Vegas, NV on Wednesday, December 7th between 4:00PM and 6:00PM for the Construction Tax Planning Panel Discussion.

Read more

KBKG Video: Using Cost Segregation with Estate Planning

Gian Pazzia

KBKG Video: Using Cost Segregation with Estate Planning

In an article recently published by the AICPA, Using Cost Segregation in Estate Planning, our subject matter expert, Gian Pazzia, CCSP, details the ability to create permanent tax savings after a death occurs through an often overlooked aspect of the Read more

Filing Season and Affordable Care Act

I think it is correct to say that all taxpayers are affected by the Affordable Care Act in some way. Certainly individuals living in the US.  All must answer a question on the 1040 as to whether everyone in the “shared responsibility family” (basically those listed on the return), had health coverage for all months of the year. If there are any uncovered months, the next step is to see if an exemption applies for that month. If no exemption for any month, a penalty is computed and reported on the 1040. Read more

AICPA Recommends To The Service To Increase The Tangible Property Small Business Safe Harbor Rules

On Tuesday, April 21st The American Institute of CPAs (hereinafter the “AICPA”) has recommended to the Internal Revenue Service (hereinafter the “Service”) that the De Minimis Safe Harbor threshold amount under the Final Treasury Regulations governing Tangible Property be increased from $500 to $2,500 for small business entity taxpayers without an Applicable Financial Statement (hereinafter “AFS”).

Troy K. Lewis, the AICPA Tax Executive Committee Chair advised the Service that “the AICPA believes the requirement that a taxpayer have an AFS to use the $5,000 De Minimis Safe Harbor threshold unfairly discriminates against smaller taxpayers, and recommends an alternative test to allow such taxpayers to use the De Minimis rule.” Read more

How Can Theft Prevention, Reporting and Return Filing Be Improved?

Changing the April 15 due date, moving taxpayer information to the cloud, and allowing personal identification numbers (PINs) for taxpayers who want them were all on the table at a Thursday hearing held by the IRS Oversight Board to explore ways to combat fraud and improve tax administration. The board, composed of presidential appointees with tax, technology, or business expertise, advises the IRS on the best ways to meet taxpayer needs.

Fraud and Identity theft

Fraud and identity theft are still rampant, according to Michael Phillips, acting principal deputy inspector general, Treasury Inspector General for Tax Administration (TIGTA), who cited billions of dollars fraudulently claimed on refundable credits such as the American Opportunity tax credit. He said “the IRS recently prevented $12.1 billion of potentially fraudulent refunds from being issued, but more work needs to be done”.

Fraud comes in many forms, observed James R. White, director of tax issues for the United States Government Accountability Office (GAO). Given its many sources, such as failure to file, underreporting, and off-shore tax evasion, Read more

IRS changes instructions for Forms 5471 and 8621

Form 5471:

  1. IRS now requires a creation of Refrence ID of the foreign corporation and this must be completed for all years ending on or after December 31, 2012.
  2. According to AICPA – “ The most notable change and one that the AICPA has recently addressed in a comment letter to the IRS, is the constructive ownership exception which was previously available to Category 3 and 4 filers only. The exception has now been extended to all Category 5 filers where ownership in the foreign corporation is solely through application of constructive ownership principles and the U.S. person through whom the U.S. shareholder constructively owns an interest in the foreign corporation files Form 5471 reporting all required information. “
  3. Other changes can be found in “What’s new” section of Form 5471.

Form 8621:

  1. In the filer identification section, a line has been added to request the reference ID number of the PFIC or QEF.
  2. New Part I, Summary of Annual Information was added to reflect the new annual filing requirement of section 1298(f) which was added by section 521 of the Hiring Incentives to Restore Employment Act of 2010. However, this new Part I is not required until the underlying regulations are published. For now, they have been marked as Reserved For Future Use. Form 8621 will be revised when Part I becomes effective.
  3. The elections in Part II of the form have been reordered and the filing requirements for new elections F, G, and H have been modified. Please complete Part II carefully with these changes in mind.
  4. See instructions for all changes very carefully.
TaxConnections