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410, 2018

Tax Notes: New Business Meals Guidance Creates Substantiation Concerns

By |October 4th, 2018|In the news|0 Comments

Kathy Petronchak, former IRS Small Business/Self-Employed Division commissioner and alliantgroup Director of IRS Practices and Procedure, interviewed by Tax Notes.
October 4, 2018
Published in Tax Notes

410, 2018

New Business Meals Guidance Creates Substantiation Concerns

By |October 4th, 2018|publishedarticles|0 Comments

October 4, 2018
By Stephanie Cumings
Published in Tax Notes

Taxpayers might not be prepared to separately document meals this year as required by new guidance on the business meals deduction, according to practitioners.

Whether client business meals would still be deductible was “the big issue” coming out of the 2017 tax law’s changes to meals and entertainment, Michael L. Hadley of Davis & Harman LLP told Tax Notes.

An October 3 IRS notice makes clear that those meals will continue to be 50 percent deductible, but it requires, among other things, that meals provided during an entertainment activity be separately billed.

Employers will need to look at how they’ve tracked their spending, and they may have to reconstruct some invoices this year to meet the new substantiation requirement, Hadley said. Ruth M. Wimer of Winston & Strawn LLP agreed that properly documenting meal expenses could be an issue.

Under the prior law, both meals and […]

310, 2018

Bloomberg Government: You Can Still Deduct a Client’s Meal on a Night Out, IRS Says

By |October 3rd, 2018|In the news|0 Comments

Kathy Petronchak, former IRS Small Business/Self-Employed Division commissioner and alliantgroup Director of IRS Practices and Procedure, interviewed by Bloomberg Government.
October 3, 2018
Published in Bloomberg Government

310, 2018

You Can Still Deduct a Client’s Meal on a Night Out, IRS Says

By |October 3rd, 2018|publishedarticles|0 Comments

October 3, 2018
By Laura Davison and Lynnley Browning
Published in Bloomberg Government

The Internal Revenue Service is giving businesses a tax break they thought they had lost in the tax overhaul last year — write-offs for wining and dining clients.

The agency said Wednesday companies can still deduct 50 percent of meals while entertaining clients and customers, clearing up confusion about whether tax law changes last year had completely eliminated that benefit.

The bill that President Donald Trump signed eliminated the deduction for so-called entertainment expenses — golf outings, cruises and concert tickets. Tax professionals also thought that ban included food purchased while taking clients out. The IRS said the costs of business meals while entertaining clients are still deductible as long as they’re reflected on a separate receipt.

“Food and beverages that are provided during entertainment events will not be considered entertainment if purchased separately from the event,” the IRS said in a statement.

For […]

608, 2018

The Wayfair Ruling and What it Means for Small Business

By |August 6th, 2018|publishedarticles|0 Comments

I know it’s August and probably the last thing on your mind is the Supreme Court’s recent Wayfair decision on out-of-state sellers.

However, given the long-term implications of the case and its anticipated impact on your clients and e-commerce in general, I thought you’d be interested in this recent Accounting Today piece. In the article, I discuss the ruling’s potential effect on small and medium businesses:

  • Although there was nothing about protecting small business in the actual holding of the Wayfair decision, it did have a lot of vague ideas on the subject, observed Dean Zerbe, alliantgroup’s national managing director and former senior counsel with the Senate Finance Committee. “Good luck with that! I don’t think states will show a restraining hand,” he said.
  • “Right after they have sales tax nexus, they’ll try to extend it to business activity tax,” Zerbe predicted. “You’re here for sales tax — […]
208, 2018

Tax Notes: U.S. Transition Tax Regs Provide Clarity, Limited Relief

By |August 2nd, 2018|In the news|0 Comments

Robert Russell, Former Counsel to the Joint Committee on Taxation and U.S. Department of Treasury; alliantgroup Director of International Tax Controversy, Planning and Policy, quoted in Tax Notes.
August 2, 2018
Published in Tax Notes

208, 2018

U.S. Transition Tax Regs Provide Clarity, Limited Relief

By |August 2nd, 2018|publishedarticles|0 Comments

August 2, 2018
By Andre Velarde
Published in Tax Notes

Lengthy transition tax regs may offer practitioners some reassurance in fleshing out more details, but they don’t venture much outside the original scope of previous guidance.

“With the release of the regs, not absolute certainty as to the transition tax liability, but pretty close,” Jose Murillo of EY said.

The highly anticipated proposed regs (REG-104226-18), released August 1, are one of the first pieces of key guidance from the Tax Cuts and Jobs Act (P.L. 115-97) to be released.

Practitioners had been anxiously awaiting more guidance on the transition tax because three previous notices, while detailed, left many questions unanswered. The 249-page reg package is divided into nine sections, including rules on adjustments to earnings and profits and basis, determining section 965(c) deductions, disregarding some transactions, foreign tax credits, elections and payments, and affiliated groups.

“Despite their length, the proposed regulations do not break […]

2706, 2018

Tax Notes: Unclear if the IRS Can Save the Client Business Meal

By |June 27th, 2018|In the news|0 Comments

Kathy Petronchak, former IRS Small Business/Self-Employed Division commissioner and alliantgroup Director of IRS Practices and Procedure, interviewed by Tax Notes.
June 27, 2018
Published in Tax Notes

2706, 2018

Unclear if the IRS Can Save the Client Business Meal

By |June 27th, 2018|publishedarticles|0 Comments

June 27, 2018
By Stephanie Cumings
Published in Tax Notes

Tax observers are torn on whether the IRS has the power to restore the deduction for client business meals that Congress seems to have unintentionally axed in the 2017 tax law.

While some practitioners contend that the IRS can salvage the deduction, one professor argues that Congress will have to amend the law if it really intended to keep client business meals deductible. The answer hinges on whether client business meals constitute “entertainment.” Under the prior law, entertainment expenses were 50 percent deductible if they met certain qualifications, but the Tax Cuts and Jobs Act (P.L. 115-97) eliminated the deduction altogether.

“Up until this change in the law, it didn’t really matter whether or not food and beverage was considered entertainment because it was 50 percent deductible either way,” Michael L. Hadley of Davis & Harman LLP told Tax Analysts.

The TCJA conference report […]

3105, 2018

Tax Notes: Global Settlement Offer for Captive Transactions Could Be Tricky

By |May 31st, 2018|In the news|0 Comments

Steven T. Miller, National Director of Tax at Alliantgroup LP, and Mark Everson interviewed by Tax Notes in regards to captive transactions.

May 31, 2018
Published in Tax Notes

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