Internal Revenue Service Goals for 2020 - Part 2


         The Internal Revenue Service (IRS) has goals to accomplish in 2020 just like everyone else. Some of their goals might be considered ambitious, but it’s always best aim high. That is especially true when it comes to providing guidance related to defining changes created by the Tax Cuts and Jobs Act (TCJA).

          There are about 100 topics that need some sort of written clarification. To provide all that by September would be a remarkable feat, since the Taxpayer First Act signed last year still needs to have a written plan about how it will be applied. How all this will happen we still do not know, but we can look forward to some guidance given on very popular topics that were impacted by the TCJA.

          The deductions related to Meals and Entertainment were shaken up by the TCJA. These expenses can now only be deducted up to 50%. A clarification may be issued soon that will explain when these meals are deductible and when they do not qualify. Many companies are waiting for the IRS to complete rules related to foreign-derived intangible income (FDII) deduction. These regulations require companies to provide documentation supporting their export activities and their source of income. Its goal is to encourage more domestic manufacturing. However, industry groups feel that the current rules require more than what is available during the normal course of business. This is a developing situation that is worth paying attention to.

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