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Technical Update- International Taxation February 2018

TREASURY PROVIDES ADDITIONAL GUIDANCE UNDER SECTION 965 AND GUIDANCE IN CONNECTION WITH THE REPEAL OF SECTION 958(B)(4)

Summary

On January 19, 2018, the Department of the Treasury and the Internal Revenue Service (collectively, “Treasury”) issued Notice 2018-13 (the “Notice”).  The Notice provides additional guidance under Section 965, Treatment of deferred foreign income upon transition to participation exemption system of taxation, as amended by “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” P.L. 115-97 (known as the Tax Cut and Jobs Act), which was enacted on December 22, 2017.   Read more

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Beware: CGL Policies Don’t Cover Faulty Work

CGL policiesBuilders and contractors who buy commercial general liability (CGL) insurance policies with the impression that they will keep them safe from allegations of inadequate or faulty work must be aware of what their policies cover. It’s important to know that a CGL policy does not provide coverage for work that is faulty.

In order to qualify for payment under a CGL policy, there must be a specific type of occurrence that causes property damage. The terms in these policies define an occurrence as an accident. This includes repeated or continuous exposure to conditions that result in bodily injury or property damage. The damages or injuries must occur during the policy period in order to qualify for coverage. These injuries or damages must not be intentional. Read more

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Tax Blueprint for the Construction Industry

tax gap

The IRS has issued documents specifically directed at the construction industry in regards to the new tax code.

The IRS continues to zero in on what it calls the “tax gap” — the amount between the taxes that are voluntarily paid and the amount the tax agency believes is actually due.

To this end, the IRS has issued a series of documents to provide better understanding of the tax code. One example is specifically directed at the construction industry.

The tax agency emphasizes instances where taxpayers failed to report, or under-reported, income from construction activities. This applies to individual workers as well as contractors and subcontractors. Following are the highlights: Read more

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3 Affordable Care Act Taxes Postponed by Congress

Affordable Care Act

The short-term government funding bill suspends certain ACA taxes.

On January 22, President Trump signed into law a short-term government funding bill. It ended the brief government shutdown by funding the federal government through February 8. It also suspends the following Affordable Care Act (ACA) taxes, which were designed to help fund health care coverage provided under the ACA. Read more

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Ryan & Wetmore’s Tax Season Food Drive

food driveWe are hosting a food drive throughout tax season! Please consider bringing non-perishable food items when you visit your local R&W office over the next few months. Each office will donate the items to a local food pantry in their area.

Food pantries and charities often receive a lot of donations during the December holidays, but are still in need year-round.

Your donations will go to these three food pantries:

Thank you for your participation!

 

 

Food Drive

Thank you to everyone who has donated!

 

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New Law Revamps the Kiddie Tax

Kiddie Tax

The new tax law has revamped the tax rate structure of the ‘Kiddie Tax’.

Congress enacted the so-called “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. Congress recently revamped this tax under the Tax Cuts and Jobs Act (TCJA).

What changed? The TCJA only revises the kiddie tax rate structure. The rest of the kiddie tax rules are the same as before. Here’s what you need to know about how this tax can come into play under the new law. Read more