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William Byrnes (Texas A&M) tax & compliance articles

Archive for April, 2019

TaxFacts Intelligence Weekly

Posted by William Byrnes on April 12, 2019


Tax Reform Impact on Performance Goal Certification Requirements in Executive Compensation Context

Prior to tax reform, companies were afforded special treatment for certain compensation in excess of the $1 million limit so long as the compensation was based on performance goals certified by the company’s compensation committee. Tax reform eliminated that exception so that companies cannot deduct this excess compensation even if it is performance based–therefore, there is no tangible benefit to having a compensation committee certify that those goals were met in many cases. Despite this, in order to qualify under tax reform’s grandfathering provisions, performance-based compensation must continue to satisfy all of the standards that existed prior to the reform, so many companies may wish to continue their certification practice if they otherwise qualify for grandfathering treatment. For more information on the post-reform rules governing the deduction for executive compensation and the grandfathering rules, visit Tax Facts Online. Read More

2019 Tax Season Preview: Now is the Time to Check Withholding

As we near the end of the 2018 tax season, many clients may have been disappointed by the amount of their refunds or even unexpectedly owed taxes because of the changes brought about by the 2017 tax reform legislation. Many of these surprises were caused by the new withholding tables developed by the IRS because the personal exemption was suspended from 2018-2025. Because of this, taxpayers should be advised to check their withholding now even though it may seem early in order to make any adjustments necessary to avoid unpleasant tax surprises next year. Taxpayers are entitled to have their employers withhold more or less depending upon their personal preferences, and the IRS website provides a calculator designed to help taxpayers anticipate how their withholding choices will impact their refund next year. For more information on the federal tax rules that apply this year post-reform, visit Tax Facts Online. Read More

IRS Provides Last-Minute Penalty Relief for Taxpayers Who Underpaid in 2018

The IRS released last minute penalty relief for certain taxpayers whose tax withholding or estimated tax payments were insufficient in 2018. Usually, a penalty will apply if the taxpayer did not pay at least 90 percent of his or her tax liability for the year. For the 2018 tax year only, the IRS lowered the threshold to 80 percent to account for the significant changes made to the tax code late in 2017. Under previous guidance released in January, the relief was to apply for taxpayers who paid at least 85 percent of their total tax liability. This relief applies both to taxpayers who paid through employer withholding and those who paid quarterly estimated payments (or any combination). If the taxpayer qualifies for this relief but has already filed a return, the taxpayer can request a refund using Form 843, which must be filed in paper format. For more information on the underpayment penalty, visit Tax Facts Online. Read More

Tax Facts Team
Molly Miller
Publisher
William H. Byrnes, J.D., LL.M
Tax Facts Author
Jason Gilbert, J.D.
Senior Editor
Robert Bloink, J.D., LL.M.
Tax Facts Author
Connie L. Jump
Senior Manager, Editorial Operations
Alexis Long, J.D.
Senior Contributor
Patti O’Leary
Senior Editorial Assistant
Danielle Birdsail
Digital Marketing Manager
Emily Brunner
Editorial Assistant

2019’s Tax Facts Offers a Complete Web, App-Based, and Print Experience

Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone.  Questions? Contact customer service: TaxFactsHelp@alm.com800-543-0874

Posted in Taxation | Tagged: , | Leave a Comment »

TaxFacts Intelligence Weekly

Posted by William Byrnes on April 10, 2019


IRS Explains Impact of SALT Cap on Taxpayers Receiving State and Local Tax Refunds

The IRS has provided guidance explaining the relevance of the “tax benefit rule” for taxpayers who receive a refund of state and local taxes in years when the post-reform limit on deducting state and local taxes (the “SALT cap”) is in effect. For more information on the impact of the SALT cap, visit Tax Facts Online. Read More

Federal Court Invalidates DOL Rules Expanding Association Health Plans

A Washington, D.C. federal court struck down the final regulations released by the DOL in effort to expand the availability of association health plans for various smaller employers and owner-employees, which would have given these groups access to less expensive plans that offered fewer benefits and did not satisfy ACA requirements. The fate of the actual expansion of association health plans remains unclear, however, as the DOL has indicated it will explore all available options and continue to work toward expanding access. For more information on the tax rules for self-employed business owners’ health coverage, visit Tax Facts Online. Read More

Employer Stock & 401(k) Plans: The Bad, the Ugly…and the Potentially Good?

In recent years, many employers have begun shying away from offering employer stock to employees as 401(k) investments. Fiduciary liability concerns and lack of diversification, especially amid dramatic decreases in value in some cases, have made the strategy risky for some companies. However, this does not mean that any client who currently holds employer stock in a 401(k) should immediately liquidate all employer stock. Clients should first be advised that the potential to take advantage of a net unrealized appreciation (NUA) strategy could provide a more valuable way to sell off employer stock. For more information on the NUA strategy, visit Tax Facts Online. Read More

Tax Facts Team
Molly Miller
Publisher
William H. Byrnes, J.D., LL.M
Tax Facts Author
Jason Gilbert, J.D.
Senior Editor
Robert Bloink, J.D., LL.M.
Tax Facts Author
Connie L. Jump
Senior Manager, Editorial Operations
Alexis Long, J.D.
Senior Contributor
Patti O’Leary
Senior Editorial Assistant
Danielle Birdsail
Digital Marketing Manager
Emily Brunner
Editorial Assistant
For questions, contact Customer Service at 1-800-543-0874.

2019’s Tax Facts Offers a Complete Web, App-Based, and Print Experience

Reducing complicated tax questions to understandable answers that can be immediately put into real-life practice, Tax Facts works when and where you need it….on your desktop, at home on your laptop, and on the go through your tablet or smartphone.  Questions? Contact customer service: TaxFactsHelp@alm.com800-543-0874

Posted in Taxation, Uncategorized | Tagged: , | Leave a Comment »

 
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