April 2017 Tax Section News

April 2017 Tax Section News including updates on Tax Reform, IRS collection standards, ITIN service options, providing tax services to marijuana businesses, and advice on client billing. Also, resources available include newly revised foreign national tools, IRS collection tools, nano learning


Partnership Tax Audits: The New Rules

The new partnership audit regime under the Bipartisan Budget Act of 2015, P.L. 114-74 (“BBA”), radically changes the assessment and collection of partnership audit tax adjustments. Yet despite the major changes contained in the BBA—or perhaps in light of them—there are still many unanswered


Staff Performance Evaluations

During the busy seasons, CPA firm staff and supervisors are focused on their clients. For the best employees, the volume of work never distracts from the quality. But in crunch time, anyone can develop bad habits that can bleed over into regular operations. The future success of any CPA firm


Get Your Bonus Depreciation (While You Can)!

For many of us, it seems like 50% bonus depreciation has always been around. The truth is that the availability of bonus depreciation, and the percentages allowed as bonus, have changed many times in the past 15+ years.

A short history of bonus depreciation rates:

  • Sept. 11, 2001 to May 5, 2003 – 30%
  • May 6, 2003 to Dec. 31, 2004 – 50%
  • Jan. 1, 2008 – Sept. 8, 2010 – 50%
  • Sept. 9, 2010 to Dec. 31, 2011 – 100%
  • Jan. 1, 2012 to Dec. 31, 2017 – 50%
  • Jan. 1, 2018 to Dec. 31, 2018 – 40%
  • Jan. 1, 2019 to Dec. 31, 2019 – 30%
  • Jan 1, 2020 – Forever? – ZERO

Congress has decided to begin weaning us off bonus depreciation, starting January of 2018. This year is the final year of 50% bonus depreciation. In 2018, the percentage drops to 40%. In 2019, the percentage drops again to 30%. Then, beginning January 2020 (absent legislation to the contrary), bonus depreciation disappears. So, if you’ve been banking on that 50% bonus depreciation to help you recover the cost of your personal property investments, you’d better spend that money by December 31, 2017, or the new, lower rate will apply.

Tax Reform: Reality or Wishful Thinking?

In December, I thought there was a very good likelihood that a fundamental tax reform bill might be passed before tax busy season was finished. Good thing I’m not a betting man. Tax reform is far from dead this year, but it’s probably further from reality than I originally thought. The odds of