IRS Updates & News Releases:
Did you know? One of the best ways to get information is by visiting the IRS Small Business Tax Center where you can learn everything from how to get an Employer Identification Number (EIN) online to how to best navigate an audit.
Third quarter estimated tax payment due Sept. 16
https://www.irs.gov/newsroom/third-quarter-estimated-tax-payment-due-sept-16
With major tax reform now in its second year and taxpayers seeing its full effect on 2018 returns, the Internal Revenue Service today reminded people who pay estimated tax that their third quarter payment for 2019 is due Monday, September 16. The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, fundamentally changed the way tax is calculated for most taxpayers, including those with income not subject to withholding. By making quarterly estimated tax payments, however, people can better stay up to date with their taxes throughout the year.
New IRS Tax Withholding Estimator helps workers with self-employment income
The Internal Revenue Service said that the new Tax Withholding Estimator tool includes a feature designed to make it easier for employees who also receive self-employment income to accurately estimate the right amount of tax to have taken out of their pay. Freelancers, others with side jobs in the gig economy may benefit from new online tool. The estimator is an expanded, mobile-friendly online tool that replaced the Withholding Calculator, which since 2001 had offered workers an online method for checking their withholding. The old calculator lacked features geared to self-employed individuals; the new estimator made changes to address this important group.
The new tool offers self-employed individuals, workers, retirees and other taxpayers a more dynamic and user-friendly way to calculate the amount of income tax they want to have withheld from either wages or pension payments. With only a third of the year remaining, the IRS encourages these taxpayers – and others – to use the estimator to take a Paycheck Checkup as soon as possible to make sure they are having the right amount of tax withheld and avoid a surprise when they file next year.
Tax Withholding Estimator helps retirees; figures tax on Social Security benefits
The new Tax Withholding Estimator, launched last month on IRS.gov, includes user-friendly features designed to help retirees quickly and easily figure the right amount of tax to be taken out of their pension payments. The mobile-friendly estimator replaces the Withholding Calculator. The estimator has features specially tailored to the unique needs of retirees receiving pension payments and Social Security benefits.
Treasury and IRS issue proposed regulations and provide relief for certain tax-exempt organizations
The Internal Revenue Service issued proposed regulations clarifying the reporting requirements generally applicable to tax-exempt organizations. The proposed regulations reflect statutory amendments and certain grants of reporting relief announced by the Treasury Department and the IRS in prior guidance to help many tax-exempt organizations generally find the reporting requirements in one place.
IRS announces new procedures to enable certain expatriated individuals a way to come into compliance with their U.S. tax and filing obligations
The Internal Revenue Service announced new procedures that will enable certain individuals who relinquished their U.S. citizenship to come into compliance with their U.S. tax and filing obligations and receive relief for back taxes.
Interest rates remain the same for the fourth quarter of 2019
https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-fourth-quarter-of-2019
Interest rates will remain the same for the calendar quarter beginning October 1, 2019, as they were in the prior quarter.
Tax Reform – https://www.irs.gov/tax-reform
Treasury, IRS release final and proposed regulations on new 100% depreciation
The Treasury Department and the Internal Revenue Service have released final regulations (PDF) and additional proposed regulations (PDF) under section 168(k) of the Internal Revenue Code on the new 100% additional first year depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service by the business. The final regulations finalize the proposed regulations issued in August 2018 which implement several provisions included in the Tax Cuts and Jobs Act (TCJA). The proposed regulations contain new provisions not addressed previously.
The 100% additional first year depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify. The deduction applies to qualifying property acquired and placed in service after September 27, 2017. The final regulations provide clarifying guidance on the requirements that must be met for property to qualify for the deduction, including used property. The final regulations also provide rules for qualified film, television and live theatrical productions.
Tax Tips
https://www.irs.gov/uac/irs-tax-tips
Free Tax Withholding Estimator webinar
Taxpayers can go to IRS.gov for answers to questions about payments and penalties
Taxpayers can use 2018 tax return to estimate 2019 withholding amount