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Posts By: Howard J. Kass, CPA, AEP®, CGMA, Partner

One Effect of the Recent Tax Reform on Not-for-Profit Organizations

By Howard J. Kass, CPA, CGMA, AEP®

As often as employers are maligned, there are times where they try to do the right thing for their employees.  To be fair, many times, an employer may take an action or incur an expense that benefits its employees, knowing that the employer will benefit by a tax deduction for incurring an expense.  In some cases, Congress encourages such behavior by explicitly permitting favorable tax treatment for certain programs.

One such case was a set of fringe benefits known as the “qualified transportation fringe” benefits that, in fact, received a double-barreled tax benefit for years, by virtue of Internal Revenue Code Section (IRC) 132(f)(5)(C).  Under that section, employers were allowed to take a deduction for, among other things, qualified parking fringe benefits that they provided to their employees. What, exactly, was a qualified parking fringe benefit?  Under IRC 132(f)(5)(C), “qualified parking” meant parking provided to an employee on or near the business premises of the employer, or on or near a location from which the employee commutes to work by transportation described in Code Sec. 132(f)(5)(A) (relating to “transit passes”), in a commuter highway vehicle, or by carpool

IRS Scammers Demand Tax Payments on Gift Cards | Accounting Today News

So, you are feeling pretty good about that lingering debt that has finally been stamped "paid in full." 

Maybe you have refinanced, modified a loan or emptied the piggy bank to clear last year's credit card frenzy that left you with a bothersome monthly payment, accruing fees and a high interest rate.  But, is it all that simple? Will debt cancellation bu ok "as is" or are there other considerations to factor?

As recommended and published by the IRS, below, find a few of most common situations that you should be aware of surrounding debt cancellation and income. 

 The following is an article published March 2, 2016, by Michael Cohn of Accounting Today. 

When Congress took up the task of adopting a federal budget, nobody expected the effect it would have on partnership taxation.  In fact, though, in passing the Bipartisan Budget Act of 2015 (the Budget Act), which President Obama signed into law on November 2, 2015, two provisions were included affecting partnerships and their partners, as follows –

The law requires you and your dependents to have health care coverage, an exemption, or make a payment with your return.  If you purchased coverage from the Health Insurance Marketplace, you may be eligible for the premium tax credit.

(For healthcare coverage options, visit the marketplace at https://www.healthcare.gov/). 

For many, the sting of holiday spending will present itself in the coming weeks by way of credit card bills and department store charges. Spending aside, the few remaining days of the year also present an opportunity to reduce your taxes, whether you are an individual taxpayer or a business owner.

Our tax team has compiled their top ten action steps to ease the burden and possibly lessen the blow of taxes owed come April 15. 

The end of year brings about changes, extenders and provisions in the world of individual and business taxation. One of the IRS changes announced for 2016 is the 3.5 cent reduction in standard mileage rates for business use of a vehicle. 

With so many Americans conducting business outside their office, the recent IRS announcement of the 2015-2016 business travel expense rates will certainly impact many.  In 2011 alone, American businesspeople took a total of 445 million trips for work-related matters, (source: NYTimes.com 05/03/12) and that figure grows steadily each year.business_travel