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News & Insights

The New Postcard Size IRS Form 1040 for 2019

The Internal Revenue Service has released a prototype of the new Form 1040 that hundreds of millions of Americans use to file their annual taxes. The new "postcard sized" form will be used for the 2018 income tax year.  A full-size PDF draft version of the new 1040 form can be viewed from the IRS website. ..

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Detecting and Preventing Expense Reimbursement Fraud

Expense reimbursement fraud accounts for 21 percent of fraud in small businesses (<100 employees), and 11 percent in large businesses (100+ employees), according to the Association of Certified Fraud Examiners’ 2018 Report to the Nations. Businesses often overlook expense reimbursement fraud because the amount of money may seem trivial: but small losses can add up quickly. The median duration of expense reimbursement fraud is 24 months, and the median loss is $31,000. ..

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2018 Form 1040 to be shorter but with more schedules

The IRS is working on a draft version of the 2018 Form 1040, U.S. Individual Income Tax Return, that reduces the size of the form to two half-pages in length and eliminates more than 50 lines, compared to the 2017 version of the form. The draft form moves many items that in the past have appeared on the face of the 1040 to various new schedules. ..

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Louisiana decreases the overall state sales tax rate effective July 1, 2018

Beginning July 1, 2018, the overall state sales tax rate will be reduced from 5 % to 4.45 %.  The new tax rate of 0.45 percent will sunset on June 30, 2025.  Louisiana updated the exemption table for exemptions and exclusions: ..

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IRS adjusts health savings account limits for 2019

The Internal Revenue Service has issued a revenue procedure providing the 2019 inflation-adjusted amounts for health savings accounts.  In Revenue Procedure 2018-30, the IRS said the annual limitation on deductions for an individual with self -only coverage under a high deductible health plan is $3,500 for calendar year 2019. Also for next year, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,000. ..

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Section 529 Plans Can Now Be Used for Private Elementary and High Schools

In the past, parents often used tax-favored Section 529 plans to build up funds for the college education of their children. Now the new tax law – the Tax Cuts and Jobs Act (TCJA) -- expands the scope of these programs. Under the TCJA, you can tap into a Section 529 plan to pay tuition expenses at many elementary and secondary schools. ..

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Taxpayers can Visit IRS.gov for Resources to Help Understand Tax Reform

Taxpayers who have questions about the Tax Cuts and Jobs Act have several resources that will help answer questions. The legislation, passed in December 2017, changes many areas of the tax law. Here are some of the resources on IRS.gov that will help individual taxpayers, businesses and the tax community: ..

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New Rules and Limitations for Depreciation and Expensing

The Tax Cuts and Jobs Act changed some laws regarding depreciation deductions.  ..

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When is entertainment an expense and are client meals deductible after the Tax Cuts and Jobs Act?

The tax rules related to meals and entertainment have changed, and left some uncertainty in the gap between the old law and the new.  Before the Tax Cuts and Jobs Act, the deduction allowed for entertainment expenses was limited to 50 percent of the amount otherwise deductible. Under the TCJA, the deduction for entertainment is completely repealed. Prior to the act, a 50 percent deduction was allowed for expenses related to business meals that were not lavish or extravagant. The confusion results from the issue of whether such business meals fall under the entertainment umbrella, or are still deductible. ..

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Inflation Adjustments Under Recently Enacted Tax Law

The Internal Revenue Service has updated the tax year 2018 annual inflation adjustments to reflect changes from the Tax Cuts and Jobs Act (TCJA). The tax year 2018 adjustments are generally used on tax returns filed in 2019.  ..

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