This annual notice provides the 2016-2017 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method. The special M&IE rates for taxpayers in the transportation industry are $63 for any locality of travel in the continental United States (CONUS) and $68 for any locality of travel outside the continental United States (OCONUS). The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day. For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in Notice 2015-63 (the per diem substantiation method) are $282 for travel to any high-cost locality and $189 for travel to any other locality within CONUS. The amount of the $282 high rate and $189 low rate that is treated as paid for meals for purposes of § 274(n) is $68 for travel to any high cost locality and $57 … Read More
The Internal Revenue Service is lowering its user fees for issuing letter rulings on tax matters when the rulings are practically identical. The IRS issued Notice 2016-59 outlining a set of revisions to the requirements for the reduced user fee for substantially identical letter rulings. The reduced fee was originally described in a section of a revenue procedure the IRS released early this year, Rev. Proc. 2016-1. The new notice also corrects the amount of the user fee for Foreign Insurance Excise Tax Waiver Agreements as stated in an appendix of the original revenue procedure. Section 15.07(2) of Rev. Proc. 2016- 1 describes the requirements for a reduced user fee for certain substantially identical letter rulings that have been requested for multiple entities with a common member or sponsor, or multiple members of a common entity. If the requirements are satisfied, Appendix A of the revenue procedure says the user fee for each additional substantially identical letter ruling, after the $28,300 fee or reduced fee, as applicable, has been paid for the first letter ruling request, is $2,700 for requests received after February 1, 2015. The IRS recently decided that the requirements for the reduced user fee should … Read More
On September 29, the Senate approved by unanimous consent H.R. 5946, the “United States Appreciation for Olympians and Paralympians Act”. The House had previously passed the measure on September 22 by a vote of 415-1. The bill eliminates the tax on medals or other prizes awarded to Team USA athletes during the Olympic and Paralympic games for those athletes whose adjusted gross income does not exceed $1 million ($500,000 for a married individual filing a separate return). The bill now goes to the president who is expected to sign the legislation into law.
North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, with similar relief expected soon for Hurricane Matthew victims in other states, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS said that affected taxpayers in Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt and Robeson counties will receive this and other special tax relief. Locations in other states are expected to be added in coming days, based on damage assessments by FEMA. The tax relief postpones various tax filing and payment deadlines that occurred starting on October 4, 2016. As a result, affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the January 17, 2017 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until October 17, 2016. The IRS … Read More
Victims of Hurricane Hermine, on August 31, 2016, in parts of Florida may qualify for tax relief from the Internal Revenue Service. The President has declared that a major disaster exists in the State of Florida. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced that affected taxpayers in the counties of Citrus, Dixie, Hernando, Hillsborough, Leon, Levy, Pasco and Pinellas will receive tax relief. Individuals who reside or have a business in Citrus, Dixie, Hernando, Hillsborough, Leon, Levy, Pasco and Pinellas may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after August 31, and on or before January 17, 2017, have been postponed to January 17, 2017. This includes individual returns on extension to October 17, the September 15 deadline for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through September 15, and for quarterly payroll and excise tax returns. In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on … Read More
Set yourself APART! Participate in the Annual Filing Season Program. The voluntary program is for non-credentialed return preparers who aspire to a higher level of professionalism. The Annual Filing Season Program promotes the importance of education and filing season preparation for return preparers without professional credentials. We encourage you to take time to review the requirements and consider participating for the upcoming 2017 filing season. What is planned? In late October – target date October 24 – the IRS will strengthen the protections for e-services accounts by requiring a stronger identity verification process for existing and new e-services users. Existing e-services users will be required to re-register and verify their identities, most through the new Secure Access platform. You must revalidate your identity to maintain access to e-services products. Who is affected? Anyone who currently has an e-services account is affected. This includes individuals who are registered as: Electronic Return Originators, Transmitters, Large Business Taxpayers with e-file mandates, Software Developers, ACA insurance provider fee/Branded prescription drug filers, ACA Information Return Transmitter/Issuer, Reporting agents, Not for Profit (VITA/TCE/LITC) users, States that use Transcript Delivery Service, and IVES Participants. E-services account holders who only use TIN Matching will also … Read More