the tax code for the upcoming year. The IRS has not made any significant changes so far, but the agency did make some notable adjustments. Also keep in mind that with a new president-elect and a potential change in the makeup of Congress, the current tax code could be altered again. However, until that time, it is important to stay familiar with the current rules.
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The standard deduction increased from $24,800 to $25,100 for married couples who file jointly and increased by $150 to $12,550 for single filers and those married but filing separately. Head of households also get a $150 increase to $18,800 in their standard deduction.
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United States: You can't always get what you want, especially with the BEAT
The 2020 Final Regulations retain the approach of the 2019 Proposed Regulations with a few key changes and they modify certain portions of the 2019 Final Regulations.
IRS provides welcome flexibility and clarification in final small business tax accounting
On Wednesday, December 23, Treasury and the IRS released final regulations 1 under sections 263A, 448, 460, and 471 of the Internal Revenue Code (Code) to implement statutory changes made by the Tax Cuts and Jobs Act (the TCJA). 2 The TCJA expanded the base of taxpayers qualifying for favorable small business accounting method reform and provided a simplified accounting method change filing requirement for years beginning after December 31, 2017.
Hitching a Ride on the Omnibus: COVID Relief and Appropriations Act Includes Major Climate Change
On December 27, 2020, President Trump signed H.R. 133, the “Consolidated Appropriations Act, 2021,” an agglomeration of dozens of individual pieces of legislation which together total nearly 6,000 pages.
The Act places the spotlight on confronting climate change through a variety of measures including energy-related tax incentives, regulation of facilities and energy production, methods to reduce GHG emissions, and research and development initiatives.
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The “Consolidated Appropriations Act, 2021” is one of the largest pieces of legislation in U.S. history to date. As described above, numerous provisions in the Act provide opportunities for the United States to move forward with potentially impactful energy and sustainability measures.
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Amended Russian tax system offers new opportunities for businesses - Lexology
Extension of the scope of tax exemption applicable to free-of-charge provision of property between related companies (free financing)
According to the new wording of art. 251 of the Russian Tax Code, a tax exemption will now be available if the shareholding interest is equal to 50% instead of the previous “more than 50%” threshold.
This exemption will now apply both in cases of direct and indirect shareholdings between the provider and recipient of the property provided free-of-charge. This exemption materially extends the scope of the entities providing free financing.
IRS Tax Law Guidance: Week of December 21 – December 26, 2020
Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of December 21 – December 26, 2020.
December 21 , 2020: The IRS released TD 9941 containing final regulations regarding the timing of income inclusion under an accrual method of accounting, including the treatment of advance payments for goods, services and certain other items.
FFCRA Leave Tax Credits Extended, but Protected Leave Rights Set to Expire in 2020 | Manatt,
On Sunday, December 27, 2020, President Trump signed the latest round of COVID-19 legislation, the 5,500-page Consolidated Appropriations Act, 2021 (the Act). The Act, which was passed by Congress on December 21, updates the tax credit provisions of the Families First Coronavirus Response Act (FFCRA), extending their availability to employers until March 31, 2021. Employers may continue to apply for tax credits for employee leaves taken under the FFCRA through that date.
Why it matters: Importantly, because the Act does not extend the obligation to provide any leave, then unless revised or supplemented, employer obligations to provide leave under the FFCRA will sunset on December 31, 2020. Employees who exhausted leave in 2020 will not be entitled to new FFCRA leave in 2021, nor will employers be able to claim a second credit toward an employee who has exhausted his or her available FFCRA leave.
As FFCRA Ends, Employer Obligations and Considerations Continue
As of Jan. 1, 2021, employers no longer have any legal duty under either the EPSLA or the EFMLEA to provide FFCRA leave to employees. The Consolidated Appropriations Act, 2021 (H.R. 133) has, however, extended the right of covered employers to voluntarily provide such leave through March 31, 2021, and continue to take tax credits for doing so.
The extension of the tax credit beyond the sunsetting of the FFCRA leave entitlements themselves underscores an issue to be considered by every employer once covered by the FFCRA, regardless of whether they decide to voluntarily continue to extend FFCRA leave benefits to eligible employees for the first quarter of 2021. That issue is whether adequate records have been kept justifying any tax credits that have been taken.
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