LEVITZACKS, Certified Public Accountants
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Important Accounting Changes on the Horizon that May Impact Your Business...

Click here to read how this change may impact your organization.

Click here to download a summary of the AICPA's Working Group's current issues and their status.

The enactment of the Tax Cuts and Jobs Act in late 2017 (TCJA) was a game changer.  We are well-versed in what the rules of the TCJA purport to be, but there is still much uncertainty in some of the implementation details.  Guidance from the IRS continues to trickle in and with each installment of pronouncements more planning opportunities become apparent, even as consensus among tax advisors about the “real rules” of the game become more established.  The year-end tax planning guides can provide a general overview of major areas to consider as tailored to Individuals, Investors, and Businesses.  Because we stay focused on continuing developments, including potential legislative changes and IRS pronouncements, we encourage you to both check our website at lz-cpa.com/newsletter.html and contact us about any special areas of your concern.

As a result of the TCJA, payroll withholding tables were revised earlier this year.  In some situations, it may be prudent to revisit your claimed withholding exemptions and our year-end projections can assist in that effort.  In addition, there are enhanced deferral techniques, state tax minimization strategies, novel estate planning techniques that combine estate tax minimization with major income tax savings for future generations, and other great ideas we look forward to sharing as they may apply to your unique situations that we encounter.  As thought leaders, we strive to anticipate the next moves of the game in these and several other areas.

In the meantime, we hope you find this year’s general tax planning brochure beneficial, if nothing more than to spark interest in seeking clarification about how the new and existing rules are applied to you.  We look forward to continuing to provide quality tax preparation and exceptional consulting services.


President Trump recently walked back consideration of capital gains indexing and a payroll tax cut, less than 24 hours after signaling his support for both.


The Senate’s top tax writers have released the first round of bipartisan task force reports examining over 40 expired and soon to be expired tax breaks known as tax extenders. Congress is expected to address these particular tax breaks, as well as temporary tax policy in general, when lawmakers return to Washington, D.C. in September.


Bonus depreciation guidance that applies to property acquired after September 27, 2017, in a tax year that includes September 28, 2017, allows taxpayers to make a late election or revoke a prior valid election to...


The IRS has granted a six-month extension to eligible partnerships to file a superseding Form 1065, U.S. Return of Partnership Income, and furnish corresponding Schedules K-1, Partner’s Share of Income, Deductions, Credits. For a calendar year partnership, the deadline to file Form 1065 and corresponding Schedules K-1 was March 15, which has now been extended to September 15.


Proposed regulations increase a vehicle’s maximum value for eligibility to use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. The increase to $50,000 is effective for the 2018 calendar year. The maximum value is adjusted annually for inflation after 2018. The proposed regulations provide transition rules for certain employers.


The temporary nondiscrimination relief for closed defined benefit plans provided in Notice 2014-5, I.R.B. 2014-2, 276, is extended through plan years beginning in 2020. Notice 2014-5 provided temporary nondiscrimination relief for certain defined benefit pension plans that were "closed" before December 13, 2013. Notice 2014-5, I.R.B. 2014-2, 276, Notice 2015-28, I.R.B. 2015-14, 848, Notice 2016-57, I.R.B. 2016-40, 432, Notice 2017-45, I.R.B. 2017-38, 232, and Notice 2018-69, I.R.B. 2018-37, 426, are modified.


The IRS has adopted final regulations with respect to the allocation by a partnership of foreign income taxes. The final regulations are intended to improve the operation of an existing safe harbor rule. This safe harbor rule, under Reg. §1.704-1(b)(4)(viii), determines whether allocations of creditable foreign tax expenditures (CFTEs) are deemed to be in accordance with the partners’ interests in the partnership.


Transactions involving digital content and cloud computing have become common due to the growth of electronic commerce. The transactions must be classified in terms of character so that various provisions of the Code, such as the sourcing rules and subpart F, can be applied.


The IRS Large Business and International Division (LB&I) has withdrawn its directive to examiners that provided instructions on transfer pricing issue selection related to stock based compensation (SBC) in cost sharing arrangements (CSAs).


The IRS has released the 2018 optional standard mileage rates to be used to calculate the deductible costs of operating an automobile for business, medical, moving and charitable purposes. Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup of panel truck will be:

  • 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017);
  • 18 cents per mile for medical and moving expenses (up from 17 cents in 2017); and
  • 14 cents per mile for miles driven for charitable purposes (permanently set by statute at 14 cents).

Comment. A taxpayer may not use the business standard mileage rate after using a depreciation method under Code Sec. 168 or after claiming the Code Sec. 179 deduction for that vehicle. A taxpayer may not use the business rate for more than four vehicles at a time. As a result, business owners have a choice for their vehicles: take the standard mileage rate, or “itemize” each part of the expense (gas, tolls, insurance, etc., and depreciation).


The start of a New Year presents a time to reflect on the past 12 months and, based on what has gone before, predict what may happen next. Here is a list of the top 10 developments from 2017 that may prove particularly important as we move forward into the New Year:


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