President Trump Tax Reform Proposal

Below is a brief summary of President Trump’s Tax Proposal announced on April 26, 2017. The proposal was vague on details. As with any major tax legislation proposal, this process will take months to work through the House and the Senate. Some of the below provisions will be enacted in 2017. However, there is a

Read more »

IRS Won’t Reject Returns That Are Silent Regarding Affordable Care Act Individual Mandate

New policy on “silent returns.” In light of the recent executive order directing federal agencies to exercise authority and discretion available to them to reduce potential burden, IRS has decided to make changes that would continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer doesn’t indicate their

Read more »

Trump Vows ‘Phenomenal’ Tax Announcement, Offers No Details

Somerset CPAs and Advisors felt it would be a good idea to forward the below announcement that just came out from Reuters. Somerset will be following this very closely and will keep you informed and up to date on this potential legislation over the next few months. WASHINGTON (Reuters) – U.S. President Donald Trump plans

Read more »

Business and Other Standard Mileage Rates Decrease for 2017

IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will decrease by 0.5¢ to 53.5¢ per mile for business travel after 2016. This rate can also be used by employers to provide tax-free reimbursements to employees who supply their own autos for business use, under

Read more »

Ohio Supreme Court Affirms No Physical Presence Needed for Out of State or Online Retailers to be Subject to the Commercial Activity Tax

Last week, the Ohio Supreme Court issued three decisions upholding commercial activity tax (CAT) assessments on out-of-state retailers with no physical presence in Ohio.  Out-of-state and online retailers, having more than $500,000 in gross receipts in Ohio sales, are deemed to have met the bright-line presence test for nexus with Ohio. The taxpayers argued that

Read more »

Will Taxes Go Down In 2017?

Starting January 20, 2017, Republican Donald Trump will be our 45th President of the United States. He will also have a Republican controlled House and Senate to work with regarding his attempt to repeal some current tax law, create new tax legislation, or amend some current tax law for the country. President-elect Trump’s tax plan

Read more »

“Micro-Captive” Insurance Transactions

IRS Notice 2016-66 identifies certain captives that make an annual 831(b) election to be “transactions of interest.”  Taxpayers who meet the criteria under the Notice will have to make a disclosure to the IRS in order to avoid civil non-reporting penalties.  Having to file a disclosure does not, per se, automatically cause an IRS exam

Read more »

Update on Possible Refund Claims

The Indiana Department of Revenue has issued a commissioner’s directive providing guidance for the treatment of refund claims based on the U.S. Supreme Court decision in Comptroller of the Treasury of Maryland v. Wynne. In Wynne, the Court held that the state of Maryland’s tax structure was discriminatory because it subjected interstate income to higher

Read more »

Health Savings Accounts Contribution Adjustments

IRS released 2017 inflation-adjusted figures for contributions to Health Savings Accounts. Annual limitation on deductions for individual with self-only coverage under high deductible health plan is $3,400, and for individual with family coverage under high deductible health plan is $6,750. “High deductible health plan” is defined as plan with annual deductible of not less than

Read more »

The Protecting Americans from Tax Hikes Act of 2015

Congress has reached a deal.  It will be passed soon.  There are some great provisions in this Act – see below: Section 179 made permanent at the $500,000 limit if qualifying Fixed Asset additions do not exceed $2,000,000. ​ Bonus depreciation has been extended. The bonus depreciation percentage is 50 percent for property (original-use) placed

Read more »