Power Struggle with the Regs
Even though for several years there have been new repair regulations which have been talked about for some years, the tax seasons that have passed were the first where preparers understood them, elucidate them and apply them to the returns of clients.
In the past filing season, the preparers faced the dilemma of what to do regarding the regs. Many preparers put most things on extension with the intention of looking at them at Summer time before figuring out what to do.
The revenue procedure does not include businesses with less than assets worth $ 10 million or average gross receipts for the three previous years from the need of filing Form 3115 in order to change the method of accounting.
DIFFICULT FOR SOME
In general, the IRS believed that things were being liberalized and made it possible for expensing more than was possible in the past. In case you want to take advantage of the 2015-20 Rev. Proc, one begins from 2014 moving forward but one does not make historic adjustments. You may therefore lose some additional deductions that you would receive from going back and doing prior year adjustments and audit protections for preceding years.
Some people have made suggestions that lack of filing Form 3115 this year may result to a return being piled up for special attention. Others claim that the IRS is stunned by 3115s such that they will not afford to give special attention.
During the season of tax, one of the biggest problems that was experienced was with the small tax payers in terms of what they were expected to comply with. To them, it got them very confused. IRS then came out with some revenue procedures for small tax payers which made them get a little off the hook about certain requirements in reporting.
HARDER FOR SOME
In case your practice deals with many owners of rental property or business owners, these regulations had a great impact regarding your tax season and the amount of time that you require to spend.
In terms of regulations, all the costs which facilitate the production or acquisition of property have to be capitalized. Improvements made on property meant to improve a unit of property, have it restored or adapted to new and different use have to be capitalized.
- Increase in Recovery of VAT on Financial Services in No Deal Brexit
- HMRC Issued a Petition for Winding up to Notts County Football Club
- London Grocer Found Guilty in £120k VAT Fraud
- HMRC Enquiring English Premier League Clubs and Players Over Potential Tax Avoidance on Sale of Players’ Image Rights
- VAT Fraud Leads Father and Son Duo to Jail
- Mechanic Ordered to Pay Back £208k with Respect to a Tax Fraud
- Large Businesses Tax underpayments increases by 13% to £25bn