IRS Modifies Section 382 Safe Harbors on Built-in Gains and Losses:
Posted by Kim Chen on May 23rd, 2018
In Notice 2003-65, the IRS outlines two alternative approaches (the Section 1374 approach and the Section 338 approach) on the identification of built-in items for Section 382(h) purposes. These methods may increase the annual Section 382 limit to allow more deductions during the five-year period following the ownership change. In a recent Notice, the IRS […]
IRS Relief Allows Certain Small Employers To Claim Section 45R Health Care Credit
Posted by Kim Chen on May 15th, 2018
Notice 2018-27, 2018-20 IRB; IR 2018-108, 4/27/2018 In a Notice and accompanying News Release, IRS has provided relief for small employers that properly claimed a credit under Code Sec. 45R for all or part of the 2016 tax year, or that properly claimed the credit for all or part of a later tax year, but […]
IRS Reminds Employers of Expanded and Modified Work Opportunity Tax Credit (WOTC)
Posted by Kim Chen on May 12th, 2018
The WOTC allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including […]
IRS Provides HSA Relief for 2018
Posted by Kim Chen on May 10th, 2018
Thanks to the Tax Cuts and Jobs Act (TCJA), inflation-adjusted amounts are now indexed using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). Because of this, the maximum deductible Health Savings Account (HSA) contribution for taxpayers with family coverage under a High Deductible Health Plan (HDHP) was reduced from $6,900 to $6,850. In […]
Nonprofit Corporation Denied Tax-exempt Status
Posted by Kim Chen on May 7th, 2018
A Texas domestic nonprofit corporation, established to deliver quality management consulting services to medical providers and advance government programs through patient safety initiatives, was denied tax-exempt status. The entity was to provide low-income housing to individuals, “uplifting services for the elderly and veterans,” and internal auditing services. IRC Sec. 501(c)(3) provides that an organization be […]
