Tax Update December 30

Make A Quarterly Payment

Taxpayers who haven’t paid enough in taxes this year can make a quarterly estimated tax payment now, directly to the IRS. The deadline for making a payment for the fourth quarter of 2019 is 15 January, 2020. This may apply to you if your employer didn’t withhold enough from payroll taxes, if you held more than one job, didn’t adjust withholding with changing circumstances, were self-employed or part of the gig economy. Use the Withholding Calculator to see how you might avoid a tax time surprise in 2020. 

Opportunity Zone Guidance Finalized

The IRS and Treasury have released final regulations on Qualified Opportunity Zone (QOZ) investment. These regulations also provide additional details on Qualified Opportunity Funds. Related forms and instructions will be available in January 2020 for taxpayers wishing to take advantage of this update. 

Tax Court Decision Results In Continued Enforcement

Taxpayers involved in designated syndicated conservation easement arrangements are encouraged to talk to their tax advisors regarding any impact a recent US Tax Court decision may have on their arrangements. “We are prepared to take each of these and all other cases being developed by the IRS to trial,” said IRS Chief Counsel Mike Desmond. “We encourage taxpayers and their advisors to see the writing on the wall and take immediate steps to resolve these matters.”

Proposed Corporate Compensation Regulations Issued

The IRS and Treasury have issued proposed regulations reflecting changes from the Tax Cuts and Jobs Act (TCJA) on the tax deductibility of officers’ compensation by publicly held corporations. The proposed regulations update some definitions and “grandfather” in some previous arrangements.