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.
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.
On Tuesday evening, the Kentucky General Assembly adjourned the special legislative session that began less than 24 hours earlier. Gov. Matt Bevin announced the session at a press conference at 3:45 p.m. on Monday, asking legislators to report to Frankfort that night by 8 p.m.
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.
Perfect score on Audit. Passed all sections on the first try with an average score of 96.5. Eligible for the Elijah Watt Sells Award. When I started studying in January 2018, I didn’t expect these statements to describe me. I planned to give it my best effort, but also planned on needing to retake a section or two. I’ve had a few people ask me about my strategy so I wanted to write this to share with anyone interested. There are many good strategies to pass the CPA exam. This is what worked for me. Find what works for you, stick with it, and you can pass this exam.
Expect calmer waters next year in Frankfort. The upcoming 2019 session, a 30-day or “short” session, kicks off on January 8, when the General Assembly will meet for four days to file legislation, formally elect leaders and assign committee chairs before breaking until February 5. The session is slated to end on March 29. Throughout the session, KyCPA will advocate for our members on tax, license and general business issues, and any other issue that affects the CPA profession. Below is a preview of some of the key issues we’ll be closely watching next year.
Becky Phillips, CPA shares how the Society and you can help usher in new CPAs into the profession and impress upon your fellow CPAs the importance of keeping the CPA license once they have earned it.
2018 has seen quite a few significant tax developments. Following are the ten biggest.
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?
Before the Government Contract Review Committee in Frankfort on Tuesday, KyCPA representatives testified in favor of updating the maximum rate schedule for government auditing services, which hasn’t been changed since 1999. The legislative committee comprised of House and Senate members reviews personal service contracts by state agencies and establishes rate schedule policies.