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E-News - April 2, 2019 - With New SALT Limit, IRS Explains Tax Treatment of State and Local Tax Refunds, and more

by MICPA | Apr 03, 2019   ()

With New SALT Limit, IRS Explains Tax Treatment of State and Local Tax Refunds
The IRS clarified the tax treatment of state and local tax refunds arising from any year in which the new limit on the state and local tax (SALT) deduction is in effect. In Revenue Ruling 2019-11, the IRS provided four examples illustrating how the long-standing tax benefit rule interacts with the new SALT limit to determine the portion of any state or local tax refund that must be included on the taxpayer’s federal income tax return.
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U of M Honors Gordon Krater with Honorary Paton Fellow Award
Congratulations to Gordon Krater, CPA who recently received the University of Michigan Ross School of Business Honorary Paton Fellow Award. Krater, a Ross alumnus, is former managing partner of Plante Moran’s Detroit office. He is highly regarded for his contributions to the CPA profession, especially in the areas of leadership succession, diversity initiatives and mentoring. MICPA President and CEO, Peggy Dzierzawski, and other leaders in the profession paid tribute to Krater in this video.
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MICPA Members Help Grand Rapids Residents with Tax Questions
Tomorrow, MICPA members with the help of Channel 13 WZZM, provide tax answers for Grand Rapids area residents. Questions can be sent in to local CPA experts on the WZZM Facebook page using #TaxHelp4You between 5 – 6:30 p.m. MICPA Board of Directors Chair-Elect David Echelbarger and Ryan Price of Echelbarger, Himebaugh, Tamm & Co., P.C. and Laura Steenwyk from Rehmann will be ready to answer tax season questions. Busy during the tax show? Find more local CPAs on micpa.org/findacpa.

Final Rules Issued on Penalty for Nondisclosure of Reportable Transactions
The IRS issued guidance regarding the amount of the Sec. 6707A penalty for failure to disclose reportable transaction information. The final regulations adopt a definition of “decrease in tax” for Sec. 6707A purposes and provide guidance for situations where a taxpayer uses a single disclosure statement to disclose multiple years of participation in a reportable transaction, explains the Journal of Accountancy.
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What You Need to Know About Sec. 163(j)
The AICPA is advocating for CPAs regarding proposed regulations to implement the Tax Cuts and Jobs Act’s limitations on the deduction of business interest expense.  Watch this video for more on Sec. 163(j).
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Individuals Eligible for Homestead Property Tax Credit
Individuals with a household income of $60,000 or less a year may be eligible for a Homestead Property Tax Credit, according to the Michigan Department of Treasury. The credit can help taxpayers if they are a qualified homeowner or renter and meet certain requirements. For most people, the tax credit is based on a comparison between property taxes and total household resources, with homeowners paying property taxes directly and renters paying them indirectly with their rent.
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IRS Revises EIN Application Process
As part of its ongoing security review, the IRS announced that starting May 13 only individuals with tax identification numbers may request an Employer Identification Number (EIN) as the “responsible party” on the application.
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FASB Proposes Revised Improvements to Income Tax Disclosure Requirements
The Financial Accounting Standards Board (FASB) issued a revised proposed Accounting Standards Update (ASU) intended to improve the relevance of current income tax disclosure requirements to financial statement users. Stakeholders are encouraged to review and provide comment on the proposed ASU by May 31, 2019.
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Most Households Approaching Retirement Have Low Savings
The Government Accountability Office (GAO) recently reported the percent of households headed by someone aged 55 and over that had no retirement savings decreased from about 52 percent in 2013 to about 48 percent in 2016.
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3 Productivity Killers You Should Avoid
Modern habits have created ways of working and living that feel more convenient but are robbing us of the ability to concentrate. That misalignment can lead to plenty of problems in personal and work life – and in relationships. Fast Company identifies three major productivity killers.
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Stress Doesn’t Just Affect People. It Affects Business.
Busy season can get stressful, and it’s critical to not let stress win. Lauren Baptiste, CPA and wellness expert, shares five ways CPAs can practice self-care and thrive at one of the most active times of the year.
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Source: MICPA
Source: MICPA

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