Overview of the Tax Cuts and Jobs Act  

Major tax reform that affects both individuals and businesses was enacted in December 2017. It’s commonly referred to as the Tax Cuts and Jobs Act, TCJA or tax reform.

The IRS estimates that we will need to create or revise more than 400 taxpayer forms, instructions and publications for the filing season starting in 2019. It’s more than double the number of forms we would create or revise in a typical year.

The IRS collaborates with the tax professional community, industry, and tax software partners each year as we implement changes to the tax law, including the Tax Cuts and Jobs Act, to ensure that our shared customer – you, the taxpayer - has information about how the law applies to your particular situation and you are prepared to file.

The Secretary of Homeland Security may designate a foreign country for TPS due to conditions in the country that temporarily prevent the country's nationals from returning safely, or in certain circumstances, where the country is unable to handle the return of its nationals adequately. USCIS may grant TPS to eligible nationals of certain countries who are already in the United States.

TPS beneficiaries can obtain an employment authorization document (EAD) and qualify for a social security number to work lawfully in the United States. As such, the will qualify for the earned income tax credit, child tax credit, and American opportunity tax credit. They also qualify for the Premium Tax Credit. Because TPS beneficiaries are lawfully present, they must have minimum essential coverage or pay a shared responsibility payment per the Affordable Care Act.

Dear Tax Return Preparer,

Set yourself APART! Participate in the Annual Filing Season Program. This voluntary program is for non-credentialed return preparers who aspire to a higher level of professionalism. The Annual Filing Season Program promotes the importance of education and filing season preparation for return preparers without professional credentials. We encourage you to take time to review the requirements and consider participating for the upcoming 2019 filing season.

If your clients have approached you about which legal entity is best for their business and when they should file, you’ve likely felt a bit stuck in how to handle those inquiries. After all, you’re an accountant, not a lawyer!

Although you cannot advocate one business entity type over another based on legal significance, you can offer general information and provide your expertise from a tax and financial perspective to help clients weigh the pros and cons.

To get a better understanding of how you can assist your clients, register for my upcoming webinar, Pros and Cons of Popular Entities & When to File, via Latino Tax Pro on November 13, 2018, at 11 a.m., Pacific Time.

What the South Dakota v. Wayfair, Inc. decision may mean for your business: Understanding Economic Nexus

Understanding where your company has nexus is an integral part of your sales tax compliance strategy because nexus dictates where your business is required to collect and remit tax. There are a lot of business activities that can cause your business to have nexus, but one is getting a lot of attention from states right now because it was at the forefront of the Supreme Court of the United States (SCOTUS) case South Dakota v. Wayfair, Inc. (Wayfair): economic nexus.

Date: September 12, 2018

From: Center for Consumer Information and Insurance Oversight, Centers for Medicare & Medicaid Services

Subject: Guidance on Claiming a Hardship Exemption through the Internal Revenue Service (IRS)

This guidance provides information about claiming a hardship exemption from the individual shared responsibility payment for 2018 on a federal income tax return without obtaining an exemption certificate number (ECN) from the Exchange.