Search Results for keywords:"Tax Cuts and Jobs Act"

The Internal Revenue Service (IRS) has proposed new regulations that explain how to determine if a foreign corporation qualifies as a Passive Foreign Investment Company (PFIC), focusing on insurance companies and banks. These regulations clarify the rules for when income from banking and insurance activities can be considered non-passive, making the company potentially exempt from certain U.S. taxes. They address details like how to value assets and manage accounting standards, aiming to provide clearer guidelines and reduce inconsistencies. This proposal is part of broader efforts to ensure foreign investment income is taxed fairly while maintaining clarity for U.S. investors.

The document from the Treasury Department and the IRS details final regulations regarding the Section 199A deduction for specified agricultural or horticultural cooperatives and their patrons. It provides guidance on how cooperatives and their patrons should calculate the Section 199A(a) and (g) deductions, ensures clear definitions like "patronage and nonpatronage," and establishes reporting requirements. The regulations aim to clarify the application of the Tax Cuts and Jobs Act's provisions, simplify tax processes for cooperatives, and ensure that tax benefits are consistent with legislative intent.

The final regulations from the Treasury Department and Internal Revenue Service (IRS) implement changes to sections 263A, 448, 460, and 471 of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act. These changes simplify tax accounting rules for certain small businesses with average annual gross receipts not exceeding $25 million. The regulations allow eligible taxpayers to use different accounting methods that reduce complexity and lower compliance burdens. For instance, they can avoid detailed inventory accounting and use simpler procedures, reflecting tax law adjustments aimed at supporting small enterprises.

The Internal Revenue Service (IRS) is asking for feedback from the public and other federal agencies on the continuation of certain information collection activities related to Form 1041-A, used for reporting charitable trust accumulations. This request comes as part of efforts to minimize paperwork burdens, as mandated by the Paperwork Reduction Act of 1995. The IRS is particularly interested in comments about whether this information collection is necessary, accurate, and could be improved. The deadline for submitting comments is April 19, 2021.

The Internal Revenue Service (IRS) and the Treasury Department have proposed new regulations focused on managing the previously taxed earnings and profits (PTEP) of foreign corporations. These rules aim to prevent double taxation by excluding certain earnings from being taxed again and explaining how shareholders should adjust the basis of their stock in these corporations. The proposed changes impact foreign corporations with PTEP and provide guidance on various tax code sections, ensuring there is no repetitive taxation on distributed earnings. Public comments on these proposed regulations are invited until March 3, 2025.

This document contains the final regulations providing additional guidance on the limitations for deducting business interest expenses under section 163(j) of the Internal Revenue Code. These regulations reflect changes made by the Tax Cuts and Jobs Act and the CARES Act, addressing how the limitation applies to various entities such as passthrough entities, regulated investment companies, and controlled foreign corporations. The rules also offer guidance on definitions related to real estate and set applicability dates for these regulations. Ultimately, these updates aim to clarify how businesses can calculate their deductions for interest expenses while considering the legislative amendments.

The Treasury Department and Internal Revenue Service have issued final regulations addressing how certain taxpayers should report income and advance payments under an accrual method of accounting. These regulations, influenced by the Tax Cuts and Jobs Act, require that income be reported no later than when it is recorded in a taxpayer’s financial statement. The regulations also allow some taxpayers to defer reporting income from advance payments to the next taxable year, provided it matches the company's financial statement treatment. These rules aim to ensure consistency between tax reporting and financial accounting.

The IRS and Treasury Department have finalized regulations that extend the time individuals have to roll over qualified plan loan offset amounts from 60 days to their tax filing due date (including extensions) for the year the offset occurs. This extension was established under the Tax Cuts and Jobs Act to help participants in employer-sponsored retirement plans who have an outstanding loan balance when they either leave their job or when their employer plan terminates. These regulations are effective from January 1, 2021, but individuals can choose to apply them to offsets deemed distributed on or after August 20, 2020. The regulations aim to simplify the process for taxpayers and provide clearer guidelines for plan administrators.