The Treasury Department and the IRS have released on IRS.gov the corrected draft final regulations under section 199A (section 199A final regulations) on the new qualified business income (QBI) deduction (section 199A deduction). These corrections include, among other edits, corrections to the definition and computation of excess section 743(b) basis adjustments for purposes of determining the unadjusted basis immediately after an acquisition of qualified property, as well as corrections to the description of an entity disregarded as separate from its owner for purposes of section 199A and §§1.199A-1 through 1.199A-6. The corrected draft has been submitted to the Federal Register for publication.
IRS ISSUES FINAL GUIDANCE ON THE TREATMENT OF RENTAL PROPERTIES AND THE SECTION 199A DEDUCTION
The Internal Revenue Service is recommending that small businesses and other payers to check out the agency’s newly-revised backup withholding publication, now available on IRS.gov.
REPORTING UNDISCLOSED FOREIGN ASSETS
On March 13, the IRS announced that it will close the Offshore Voluntary Disclosure Program (OVDP), effective September 28, 2018. In the announcement, the IRS encouraged taxpayers who need to disclose noncompliant and unreported foreign accounts and assets to come forward before the September deadline.
A NEW LOOK FOR THE FORM W-4:
Revised versions are expected at some point in mid-August.
PROPOSED REGS REFLECT NEW HEAD OF HOUSEHOLD DUE DILIGENCE RULE FOR TAX PREPARERS
Proposed regulations have been issued by the Internal Revenue Service that amend portions of previously proposed regulations to reflect the Tax Cuts and Jobs Act (TCJA) expansion of the scope of the tax return preparer due diligence penalty under Code Sec. 6695(g).
SENIORS GET A NEW SIMPLIFIED TAX FORM FOR 2019:
Taxpayers who turn 65 years of age in 2019 or are older will have the option to use a new simple tax form for seniors, known as the 1040SR, when filing their 2019 taxes during the 2020 tax filing season.