Wolters Kluwer Tax & Accounting provides a 2020 Post-Filing Season Tax Update.
Wolters Kluwer Tax & Accounting today announced the publication of its “2020 Post-Filing Season Update,” available as a complimentary download through the award-winning CCH® AnswerConnect online research platform. The briefing highlights key developments during the filing season that will impact taxpayers of all types for the remainder of 2020.
“In 2019 the IRS (Internal Revenue Service) had to deal with the government shutdown. This year, it faced many challenges stemming from the effects of the COVID-19 pandemic, but the IRS employees were able to continue to promulgate guidance while working from home,” said Mark Luscombe, JD, LL.M, CPA, and Principal Federal Tax analyst for Wolters Kluwer Tax & Accounting. “This tax briefing is designed to bring taxpayers up-to-date on what has been happening while everyone was focused on tax return preparation.”
Key items included in the 2020 tax developments are:
- COVID-19 Legislation. While much of the COVID-19 legislation enacted by Congress had an impact on 2019 and even 2018 tax returns, many more provisions will have an impact on 2020 returns. Congress is still considering additional COVID-19 legislation before it breaks for its August recess
- IRS Business Guidance. The IRS continues to issue guidance implementing the Tax Cuts and Jobs Act as well as addressing other matters. Areas addressed in 2020 business-related guidance include stock distributions by mutual funds and real estate investment trusts, deductibility of fines and penalties, definition of “real property” for like-kind exchanges, covered asset acquisition rules, final regulations with respect to FDII (foreign-derived intangible income) and GILTI (global intangible low-taxed income) deductions, foreign tax credit as a listed transaction, low-income housing credit, ratable rehabilitation credit, renewable electricity production and energy credits, carbon sequestration credits, and hybrid dividends
- IRS Individual Guidance. IRS guidance related to individuals has included changes to wage withholding and redesigned Form W-4, the definition of qualifying relative for child-related tax benefits, reporting relief for transactions with certain foreign trusts, forbearance programs arising from COVID-19, cafeteria plans and COVID-19, arrangements that hold real property as trusts, and COVID-19-related distributions and plan loans
- Court Guidance. The Supreme Court has ruled that state law applies to allocations of refunds from consolidated tax returns
The Tax Briefing from Wolters Kluwer Tax & Accounting dated July 24, 2020 and titled “2020 Post-Filing Season Update” is available for download now.