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  • IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018

    January 16, 2019

    WASHINGTON — The Internal Revenue Service announced today that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

  • IRS operations during the appropriations lapse

    January 15, 2019

    Due to the lapse in appropriations, most IRS operations are closed during the shutdown. An IRS-wide furlough began on December 22, 2018, that affects many operations. During this period, the IRS reminds taxpayers that the underlying tax laws remain in effect, and all taxpayers should continue to meet their tax obligations as normal. Individuals and businesses should keep filing their tax returns and making payments and deposits with the IRS, as they are required to do by law.

  • Tax expenditures task force releases report

    December 19, 2018

    The Task Force on Tax Expenditures, a bipartisan group of legislators charged with examining the commonwealth’s tax expenditures, released its report on December 13. Kentucky statute defines a “tax expenditure” as the estimated amount of revenue loss resulting from an exemption, exclusion, or deduction from the base of a tax, a credit against the tax, a deferral of a tax, or a preferential tax rate. The group’s 38-page report mainly consists of the minutes of each of its four meetings, along with six recommendations.

  • 2018’s top 10 biggest tax developments in Kentucky

    December 17, 2018

    2018 has seen quite a few significant tax developments. Following are the ten biggest.

  • Individual federal income tax planning

    December 17, 2018

    It’s beginning to look a lot like….tax time! Looking back at all of the tax law changes, interpretations and developments each month, this has been quite an interesting and eventful year. Between changes to the Federal tax code, Kentucky income and sales taxes, and the Wayfair case, accountants have had their hands full for some time. With all of the changes in mind, what can taxpayers do before year-end to be better prepared and maximize their federal tax savings?

  • The new 20 percent QBI deduction

    November 14, 2018

    The computation of the QBI deduction may actually be made easy by our software programs. However, putting in the proper information into the system, the definitions of each item in computing the deduction, the determination of which trades or businesses qualify for the deduction, and planning to maximize the deduction will make the computation more complex than our clients may believe it should be.

  • New depreciation rules: Tax planning opportunities

    November 6, 2018

    The Tax Cuts and Jobs Act (TCJA) has reformed business taxation with many changes to depreciation and the expensing rules for business assets. Little attention has been drawn to depreciation changes, but the new rules offer new opportunities for additional tax savings especially when applied with cost segregation.

  • KyCPA applauds Supreme Court decision to require publishing of final rulings

    November 2, 2018

    On November 1, the Kentucky Supreme Court affirmed the appellate court’s decision that the Department of Revenue must publish redacted final rulings, which will enhance transparency in the administration of our tax laws.