As we get closer to the end of the year, there’s plenty of important tax news to go over. One of the most exciting stories is that our founder and CEO, Chuck McCabe, has been named one of Accounting Today’s “Top 100 Most Influential People in Accounting” for the sixth year in a row.
His work with the Income Tax School and tax preparation entrepreneurs seems particularly relevant and necessary right now with major tax reform in place and technology changing at a rapid pace. Accounting Today points out, “At a time when tax practitioners are examining the underpinnings – and the future – of their practices, McCabe’s sage advice on building a strong tax business is more valuable than ever.”
Heading into the fourth quarter, the headlines from this month’s tax news reflect how close we’re getting to tax prep season. The Internal Revenue Service (IRS) is preparing. More stories are popping up about the nitty gritty details of what’s included in the new tax laws. The reality of what returns and tax bills are going to look like is starting to set in. Here are some stories we’ve read this month that tax preparers should know about.
Whether or Not You Can Claim Other Dependents Changes Your Tax Picture a Lot
A larger standard deduction is supposed to take the place of personal exemptions – including exemptions you would claim for any children as dependents. What does this look like in reality for different families? Kelly Phillips Erb with Forbes breaks down the details of claiming dependents under the new tax regulations.
New Individual Tax Transcript Format Should Provide Better Security
The IRS announced it has developed a new format for individual tax transcripts. The new format redacts personal information on the transcripts, which should make the documents more secure. Accounting Today gives more details about the new format and what prompted the change.
Section 199A Pass-through Rules Adds to Compliance Costs
The new pass-through entity rules that reduce the tax liability of sole proprietors and pass-through entities with a 20% deduction on business-related income is likely to add as much as $1.3 billion in compliance costs. Get a breakdown of where the extra cost is likely to come from and where that burden will fall.
Could the Miscellaneous Expenses Deduction Make a Comeback?
The Tax Cuts and Job Act did away with the miscellaneous expenses deduction, which is what some workers used to make above-the-line deductions for work expenses, such as uniforms and even union dues. A new bill introduced to the Senate could bring these deductions back. Read more about the proposed Tax Fairness for Workers Act, including what’s in it and where it stands today.