Inside This Issue
- New Redacted Tax Transcript to Debut Sept. 23
- Proposed Regulations on Charitable Contributions and State and Local Tax Credits
- Protect Your Clients, Protect Yourself: Educate Employees about Data Security
- Standard Rate for Orlando IRS Tax Forum Ends Tuesday
- Technical Guidance
1. New Redacted Tax Transcript to Debut Sept. 23
The IRS this week unveiled a new format for individual tax transcripts that makes taxpayer information more secure. The new format redacts personally identifiable information but keeps financial entries visible, allowing tax professionals and third-parties the data they need for tax preparation or income verification. The new redacted transcript debuts on Sept. 23.
A sample of the new transcript and a comprehensive list of questions and answers are available on IRS.gov.
2. Proposed Regulations on Charitable Contributions and State and Local Tax Credits
The Treasury Department and the IRS issued proposed regulations this week providing rules on the availability of charitable contribution deductions when the taxpayer receives or expects to receive a corresponding state or local tax credit. The proposed regulations are designed to clarify the relationship between state and local tax credits and the federal tax rules for charitable contribution deductions and are available in the Federal Register.
3. Protect Your Clients, Protect Yourself: Educate Employees about Data Security
In the seventh installment of the Tax Security 101 series, the IRS and its Security Summit partners encourage tax professionals to increase security education for all office employees to safeguard client data and help prevent fraudulent return filings. The warning follows an increase this year in reports of data thefts from tax professionals.
For more, visit “Protect Your Clients; Protect Yourself: Tax Security 101.”
4. Standard Rate for Orlando IRS Tax Forum Ends Tuesday
Tax professionals who have put off registering for the Orlando IRS Tax Forum still qualify for the standard rate of $255 — if they sign up by Tuesday, Aug. 28. On Aug. 29, the registration fee rises to $370.
The Orlando IRS Tax Forum, the final Forum of the year, takes place Sept. 11-13. Visit the IRS Nationwide Tax Forum website to register.
5. Technical Guidance
Notice 2018-67 solicits comments regarding the application of new section 512(a)(6) of the Internal Revenue Code (“Code”), which requires an organization subject to the unrelated business income tax under section 511 with more than one unrelated trade or business to calculate unrelated business taxable income (“UBTI”) separately with respect to each trade or business.
Notice 2018-68 provides initial guidance on the application of amended section 162(m) of the Code, which generally limits the allowable deduction for a taxable year for remuneration by any publicly held corporation paid with respect to a covered employee.
Revenue Procedure 2018-44 modifies Rev. Proc. 2018-31, 2018-22 Internal Revenue Bulletin 637, to provide that an eligible terminated S corporation, as defined in section 481(d)(2), that is required to change from the overall cash method to an overall accrual method of accounting as a result of a revocation of its S corporation election, and that makes this method change for the C corporation’s first taxable year after such revocation, takes into account the resulting section 481(a) adjustment ratably during the six-year period beginning with the year of change.
