IRS Proposes Regulations to Global Intangible Low-Taxed Income
The Tax Cuts and Jobs Act (TCJA), passed in December 2017, made tax law changes, including adding new rules requiring the inclusion of global intangible low-taxed income generated by controlled foreign corporations (CFCs). Under these rules, taxpayers with 10 percent of the value or voting rights in a CFC must include any global intangible low-taxed income as currently taxable income, whether or not the taxpayer receives a distribution. More information can be found here.
IRS Considers Hurricane Florence
Taxpayers and businesses in affected areas of North Carolina have been granted extensions on filing and quarterly payments. Eligible localities can be found at the IRS’ disaster relief page. See also their Hurricane Florence Information Center.
In response to the shortage of diesel fuel in hurricane affected areas, the IRS lifted the penalty for selling or using dyed diesel fuel on the highways. Dyed fuel is limited for use in farmers’ equipment, heating fuel, and government buses, and is not taxed. Those selling or using the fuel on public roadways during this time will not be penalized but are subject to the 24.4¢ per gallon tax. Find more information on how to report and pay this tax.
The IRS warns donors not to be fooled by disaster relief scams. Criminals use every opportunity, even natural disasters, to take advantage of the generosity of citizens. Know how to spot a scammer and what safe giving looks like.
Tax-Free Moving Reimbursements
If you moved in 2017 and your employer reimbursed your moving expenses in 2018, those reimbursements are not taxable. The 2017 Tax Cuts and Jobs Act (TCJA) suspended the exclusion of reimbursements from taxable income, but this clarifies that expenses incurred in 2017 remain non-taxable even if the reimbursements occurred in 2018.
Family and Medical Leave Tax Credits Announced
The IRS announced a new tax credit in tax years 2018 and 2019 for businesses that offer paid family and medical leave. For information on special rules, limitations, and how to calculate the credit, see here.
IRS Alerts Taxpayers to Scammers
As the October 15 extended deadline for tax filing approaches, scammers may be more active. Know how to spot and to deal with telephone scammers, phishing emails, and fake donation requests.