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E-News - January 22, 2019 - Final Regs on New QBI Deduction, IRS Won't Penalize Confused Taxpayers, and more

by MICPA | Jan 22, 2019   ()

Treasury, IRS Issue Final Regs on New Qualified Business Income Deduction
The Treasury Department and the Internal Revenue Service issued final regulations and three related pieces of guidance, implementing the new qualified business income (QBI) deduction (section 199A deduction). The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income.  Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly traded partnership income.  
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IRS Won’t Penalize Confused Taxpayers Following Changes to Code
Taxpayers who miscalculated how much they’ll owe the IRS this year won’t get hit with penalties — up to a certain point. The Treasury Department said it won’t penalize individuals who underpaid their estimated taxes for 2018, as long as they paid 85 percent of what they owe through withholding or estimated quarterly payments.
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Michigan Treasury Update for Fiduciary E-File
Michigan has created a new fiduciary web page for tax preparers e-filing fiduciary returns.  Once it’s fully operational (by early February), visit www.MIFastFile.org for the following information related to the Michigan fiduciary e-file program:

  • 2018 Fiduciary Tax Preparer Handbook

  • 2018 Fiduciary E-File Business Rules

  • How to Participate in e-filing

  • Choosing Tax Preparation Software

  • Other Helpful Information

MIFastFile.org

LARA Alerts Michigan Corporations of Scheme to File Bogus Document
Michigan Dept. of Licensing and Regulatory Affairs (LARA) Director Orlene Hawks warned Michigan corporations of a non-governmental entity called “Michigan Council for Corporations” seeking to collect a $150 fee to prepare “corporate consent records in lieu of annual meeting minutes.” This deceptive notice is not issued by LARA or any governmental agency. Corporations are only obligated to file their annual report through LARA’s Corporations, Securities and Commercial Licensing Bureau and not an “Annual Records Solicitation Form.”
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Don’t Look Away! Blockchain Isn’t So Bad
Blockchain is one of those words you see over and over again and think “I should probably know something about that, but it sounds so…techie.” Good news:  the AICPA did the work for you by interviewing a blockchain expert for a quick dive into what you need to know.
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Get Your CPA Candidates on Track for 2019 Testing
The 2019 CPA Exam score release dates are posted, and now is the time to help your candidates plan out their testing schedule. They can even download “bite-sized” study materials for the latest section-specific CPA Exam Blueprints (effective July 1).
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Student Debt Hinders Homebuying For Young People, Study Finds
Student loans are undercutting the housing market by preventing many people ages 24 to 32 from buying, a Federal Reserve study finds. From 2005 to 2014, the study shows that homeownership in that age range declined to 36 percent from 45 percent reports CNBC.
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Gig Economy Could Be a Boon for CFOs Strapped for Talent
As the gig economy takes further hold, CFOs should reconsider their strategies for recruiting, accessing and retaining talented employees, says the Financial Executives Institute. The “gig” economy, comprised of contract, contingent or outsourced workers - many of whom prefer the flexibility of short-term projects to working in a conventional full-time position – presents finance executives facing talent shortages with a potential solution. But there are risks.
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Avoid Commonly Used Passwords
Can you guess which passwords are used far too often? If your password is on this list from the Journal of Accountancy, it's probably a good idea to change it promptly.
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Source: MICPA
Source: MICPA

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