Skip to main content

The Latest in Tax News: December 2019 Edition

Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of December 2019. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of December. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you!

Tax News for December 2019

Tax Topic: US Congressional negotiators reach year-end tax deal

Tax Summary:
  • US House and Senate reached a tax deal on December 17, 2019. The tax deal will be incorporated into the 2020 spending bill.
  • The tax deal includes: "extenders," ACA tax repeals, disaster relief, and more.
    • The tax deal extends expiring provisions, including biodiesel credits, short-line railroad credits, New Markets Credit,Work Opportunities Credit, and more.
    • The tax deal repeals three ACA taxes, including medical device excise tax, Cadillac tax, and health insurane provider fee.
    • The tax plan sets short-term tax relief provisions for victims in federally-declared natural disasters.

Tax Topic: Proposal for a global minimum tax

Tax Summary:

  • OECD/G20, which includes 135 member countries, is considering a global minimum corporate income tax to target multinationals.
  • The proposal is part of Pillar Two, or the GloBE Proposal, which focuses on taxing the digital economy.
  • The GloBE proposal introduces two new taxes on multinational profits:
    • a global minimum tax on corporate profits
    • a base erosion tax

Tax Topic: The IRS enhances its Free File Program

Tax Summary:

  • The IRS added to its Free File Program, which is an agreement with tax preparation companies focused on allowing qualified taxpayers to file their tax returns for free.
  • The government program provides free tax-prep software to U.S. taxpayers with incomes below $69,000.
  • The changes to the Free File Program include: baring the tax-prep firms from manipulating free-tax prep search algorithms on Google as well as initiating an IRS digital filing system. 


Popular posts from this blog

Gambling Winnings & Losses: How to report gambling income and losses

People love to gamble.  During the past NFL Super Bowl (2019),  gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry.  Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable? Gamblin

File your taxes online for free: The IRS Free File Program Explained

It is officially tax filing season. While many people dread filing their tax return, I have some good news that may cheer you up and save you some money during this tax filing season. For those that meet the requirements, you may file your tax return for free via the IRS Free File Program! What is the IRS Free File Program? The IRS Free File program is a partnership between the IRS and leading tax-preparation companies. The partnership states that these tax-prep software companies must provide free online tax preparation and electronic filing for those who qualify for Free File. What are the requirements to qualify for the IRS Free File Program? You may file your taxes for free using the Free File software if your income is $72,000 or less (for tax year 2020). By qualifying for Free File, you may choose from several brand-name tax software companies. The software will guide you through the tax preparation process, ultimately preparing and printing your tax return. If your inc

20 Tips & Tricks for Studying for the CPA Exam

For those on the way to becoming a certified public accountant, you now know it is a long and difficult journey. For those just beginning, good luck! The most difficult and time-consuming task is passing the CPA Exam. CPA candidates must spend hundreds of hours preparing for all four sections of the CPA. Each CPA section represents an entirely different topic, creating a daunting task for anyone looking to start studying for the CPA exam. I passed all four sections of the CPA with an average score of 91. Luckily, I did not have to retake any of the exams, which is a common occurrence as the average passing rate is around 40-50% per exam. Having personal experience dealing with the CPA exam process, I want to share valuable tips for conquering the CPA exam. I want you to feel confident and comfortable during the CPA exam process, and so, I believe the following tips will help you during the CPA exam process. Lets begin! Related Posts -  Preparing for the CPA Exam: How to Study