Steps to Take Now to Get a Jump on Your Taxes
- Forms W-2 from employers
- Forms 1099 from banks and other payers
- Other income documents and records of virtual currency transactions.
In September 2013, the IRS issued final tangible property regulations addressing the capitalization and depreciation of capital expenditures, treatment of materials and supplies, and disposition of tangible depreciable property. The regulations are applicable to tax years beginning on or after January 1, 2014, and to some extent may be applied retroactively to taxable years beginning on or after January 1, 2012.
On Sept. 10, 2014, Governor Jerry Brown signed AB 1522 — the Healthy Workplaces, Healthy Families Act of 2014 (“HWHFA”). Effective July 1, 2015, California law will mandate paid sick leave accrual for employees statewide at a rate of one hour for every 30 hours worked, allowing employers to cap employee use of paid sick leave to 24 hours (or three days) per year, with accompanying notice and recordkeeping requirements.
CAMICO issued an updated Alert to our policyholders in response to the IRS February 13, 2015 release of Rev. Proc. 2015-20 offering tangible property regulations (TPR) relief to small businesses and rental real estate owners. Rev. Proc. 2015-20 provides a simplified procedure for small businesses to comply with the final tangible property regulations, although with some trade-offs.
The following alert has been modified as a result of new guidance provided by the IRS. On February 13, 2015, the IRS released Rev. Proc. 2015-20, which provides a new simplified procedure for small businesses. Under this simplified method, a small business may adopt the final tangible property regulations on a prospective basis and Form 3115 is not required.
The Internal Revenue Service (IRS) has issued guidance indicating that health reimbursement arrangements (HRAs) that do not comply with the Affordable Care Act (ACA) are subject to severe penalties.
Since the time this Alert was written, the AICPA has announced that the IRS and Treasury are considering the AICPA’s recommendations to provide relief from the reporting requirements related to the repair regulations. The AICPA stated that it is “hopeful” that the IRS and Treasury “will release some form of relief for small businesses in the next couple of weeks."
As you may know, SSARS No. 21 is effective for engagements on financial statements for periods ending on or after December 15, 2015, but early implementation is permitted. CAMICO offers its policyholders SSARS No. 21-compliant engagement letters that are available on the Members-Only Site under the Engagement Letter Resource Center. In addition, CAMICO has made available a short 23-minute, information-only webcast (no CPE) providing an overview of some of the changes brought about by SSARS No.
CAMICO has seen an uptick in calls from policyholders reporting that clients are receiving scam calls from individuals claiming to be Internal Revenue Service (IRS) agents or Criminal Investigation Division (CID) agents. These scam calls are designed to get the taxpayers to respond and to divulge personal identity information.
Revised final regulations governing practice before the Internal Revenue Service (IRS) took effect June 12, 2014. The regulations impact individuals who practice before the IRS and modify the standards governing written advice and other related provisions of the regulations.
In September 2013, the IRS and U.S. Treasury issued final capitalization regulations. These revised regulations, under specified circumstances, permit business taxpayers to make safe harbor elections that would enable them to deduct expenditures that might otherwise need to be capitalized. The focus of this alert is on the de minimis safe harbor election and the requirement for taxpayers to have a written accounting policy in place not later than the first day of their tax year - January 1, 2014 for calendar year clients.
What amount is considered de minimis?