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  • 03/26/2018 1:22 PM | Anonymous

    Here are some updated tax reform resources from the AICPA:

    AICPA’s tax team has updated two (2) PowerPoint presentations on the impact of the new tax laws, which you can find at this Dropbox link.  One presentation is for individuals, and one covers business considerations.  

    More at AICPA Tax Reform Resource Center

    The AICPA’s Tax Reform Resource Center is a great repository of resources – including this March 12 Journal of Accountancy podcast on how national tax reform is impacting state taxes.


  • 02/19/2018 9:46 AM | Anonymous member (Administrator)

    The Tax Cuts and Jobs Act (Pub. L. 115-97) has created quite a stir in the tax community regarding the status of meals in a business context. Congress moved in the Act to deny any business deduction for entertainment. And the Conference Committee Report allowed that meals “associated with operating” a trade or business remain deductible.

    But the one example the Committee Report cited is one where the meal is clearly related to travel—a class of meals no one would have doubted was still an allowed expense under the law. That leaves open the far less easy to resolve question regarding what other meals still remain deductible.

    This article, written in mid-February 2018, cannot give a conclusive, final answer to this question—that will need to await IRS guidance or eventual court cases on the issue. But we can look at what we do know right now are clearly are or are not deductible, as well as recognize those expenditures for which no absolute conclusions can yet be drawn.

    To read the rest of the document, please click here to download the PDF.

  • 02/07/2018 1:39 PM | Anonymous

    A society staffer received an email with a attached zip file attached purporting to be tax info.

    They said they’d be in the office later to sign the return.

    We didn’t click on the link … careful ! 


  • 01/25/2018 3:58 PM | Anonymous
    • 1)     Filing season start date

    The start date was announced:

    ·         January 29 for individual tax returns

    ·         January 8 for business tax returns

    For 2017, medical expenses deductible if over 7.5% of AGI, not 10% as planned in a previous tax bill.

    Standard Mileage Rates for 2018 Up from Rates for 2017

     Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

    54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
    18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
    14 cents per mile driven in service of charitable organizations.

    • 5)     Form 1095-B and 1095-C
    • Because of these extensions, individuals may not receive their Forms 1095-B or 1095-C by the time they are ready to file their 2017 individual income tax return. While information on these forms may assist in preparing a return, the forms are not required to file. Taxpayers can prepare and file their returns using other information about their health coverage. They do not have to wait for Forms 1095-B or 1095-C to file.

     6)     New Scam

    Consumer Alert: IRS Warns Taxpayers, Tax Pros of New Email Scam Targeting Hotmail Users

  • 01/25/2018 3:12 PM | Anonymous

    The IRS continues to review its procedures to better protect sensitive taxpayer data. As part of this effort, the IRS will request additional information from tax professionals who contact us through the Practitioner Priority Service or any toll-free IRS telephone number.

    This procedural change will require tax practitioners to provide personal information so that our customer service representatives may confirm their identities. This additional information may include data such as your Social Security number and your date of birth. This personal information, in addition to the CAF number, is necessary to verify the identities of the person to whom we are releasing taxpayer information.

    We’ve also made an update to Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization, that will require you to inform your client if you are using an Intermediate Service Provider to access client transcripts via the Transcript Delivery System. A box must be checked if you are using a third party. We define Intermediate Service Providers as privately owned companies that offer subscriptions to their software and/or services that the taxpayer’s authorized representative can use to retrieve, store, and display tax return data (personal or business) instead of obtaining tax information directly from the IRS. The IRS must know who is using our tools; and taxpayers must know when a party other than their authorized representative is involved in accessing their sensitive data.

    We realize there have been a number of changes for tax professionals in recent weeks. But each change is intended to enhance protections for you and your clients. Unfortunately, business as usual is no longer an option. Cybercriminals are well-funded, persistent and adept at stealing data from outside the IRS and using it to eventually file fraudulent tax returns. As cybercriminals evolve, so must we.

    As part of our efforts, we also have strengthened protections for IRS e-Services. If you are an e-Services account holder, we urge you to immediately upgrade your account through our new two-factor identity verification process. Some of you may need to complete this process by mail which could add 10 days or more to the process. Please, do not wait until the start of filing season or until you have an urgent need for one of the e-Services tools before updating your account.

    In the future, we will be asking each e-Service user to sign a new user agreement intended to ensure that all tax professionals understand their security obligations. We will share this information with you in advance.

    Protecting you and your clients from identity theft is a paramount issue for us. But we can’t do it alone. We need your help and your understanding as we continue to review and enhance our procedures.

    -- NPL Communications
    ACA Information Center for Tax Professionals
    Tax Professionals page on irs.gov

  • 01/10/2018 3:53 PM | Anonymous

    IRS Message to the Tax Professional Community:

    The IRS continues to review its procedures to better protect sensitive taxpayer data. As part of this effort, the IRS will request additional information from tax professionals who contact us through the Practitioner Priority Service or any toll-free IRS telephone number.

    This procedural change will require tax practitioners to provide personal information so that our customer service representatives may confirm their identities. This additional information may include data such as your Social Security number and your date of birth. This personal information, in addition to the CAF number, is necessary to verify the identities of the person to whom we are releasing taxpayer information.

    We’ve also made an update to Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization, that will require you to inform your client if you are using an Intermediate Service Provider to access client transcripts via the Transcript Delivery System. A box must be checked if you are using a third party. We define Intermediate Service Providers as privately owned companies that offer subscriptions to their software and/or services that the taxpayer’s authorized representative can use to retrieve, store, and display tax return data (personal or business) instead of obtaining tax information directly from the IRS. The IRS must know who is using our tools; and taxpayers must know when a party other than their authorized representative is involved in accessing their sensitive data.

    We realize there have been a number of changes for tax professionals in recent weeks. But each change is intended to enhance protections for you and your clients. Unfortunately, business as usual is no longer an option. Cybercriminals are well-funded, persistent and adept at stealing data from outside the IRS and using it to eventually file fraudulent tax returns. As cybercriminals evolve, so must we.

    As part of our efforts, we also have strengthened protections for IRS e-Services. If you are an e-Services account holder, we urge you to immediately upgrade your account through our new two-factor identity verification process. Some of you may need to complete this process by mail which could add 10 days or more to the process. Please, do not wait until the start of filing season or until you have an urgent need for one of the e-Services tools before updating your account.

    In the future, we will be asking each e-Service user to sign a new user agreement intended to ensure that all tax professionals understand their security obligations. We will share this information with you in advance.

    Protecting you and your clients from identity theft is a paramount issue for us. But we can’t do it alone. We need your help and your understanding as we continue to review and enhance our procedures.

    Thank you.  

  • 01/03/2018 8:53 AM | Anonymous

    Yesterday, the IRS issued a statement regarding potential deductibility of pre-paid 2018 property taxes.  Click here to read the full article.

  • 01/02/2018 11:36 AM | Anonymous

    Busy season 2018 is upon us and this season will bring lots of changes.  A new federal tax bill has been passed for 2018.  The State of Minnesota also passed the 2017 Minnesota Omnibus Tax Bill on May 30, 2017.

    A few of the individual benefits of the Minnesota tax bill which are effective for 2017 are as follows:

    • A new subtraction, up to $4,500 for married filing joint or $3,500 for single, may be used to offset social security and tier 1 railroad retirement income.  The subtraction is subject to phase out limits.
    • Contributions to a 529 collage savings plan may now qualify for either a subtraction or a credit, but not both. 
    • A subtraction, up to $3,000 for married filing joint or $1,500 for all others, may be used for 529 plan contributions.
    • A tax credit may be claimed equal to the lesser of $500 or 50% of net contributions.  The credit will be phased out with adjusted gross income in excess of $75,000.
    • Minnesota residents may claim a nonrefundable credit up to $500 for student loan payments.
    • Minnesota teachers obtaining a master’s degree may be eligible for a tax credit up to $2,500.
    • A refundable credit may be claimed for taxes paid to Wisconsin.
    • Minnesota nonresidents may need to accelerate installment sales for Minnesota assets or businesses if election is not made and future Minnesota returns are not filed.
    • Minnesota estate exemption will increase $300,000 per year until reaching $3,000,000 in 2020.
    • From 2018 thru 2023 taxpayers may be eligible for a credit for transactions with beginning farmers.
    • Creation of first-time home buyer’s accounts and potential subtraction.

    Partnership returns will follow the Federal due date of the 15th day of the third month after year end.

  • 12/22/2017 11:28 AM | Anonymous

    Recently, both houses of Congress passed a tax reform bill titled “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” also known as the Tax Cuts and Jobs Act. The legislation is now bound for the President’s desk. After a Senate and House conference committee reviewed the preexisting bills from both houses, a number of changes and consolidations were made to create the final bill. 

    It is expected that President Trump will shortly sign the Tax Cuts and Jobs Act into law, giving the country the first fundamental tax reform since 1986. Once signed, it’s likely some time will be needed to work through implementation, including the production of new IRS forms and guidance to accommodate the many changes involved.

    Among the provisions of the final bill, which the Joint Committee on Taxation estimates will cost $1.4-trillion over 10 years, are: lowering of the corporate tax rate to 21 percent, seven individual tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%) and an increase in the standard deduction to $12,000 for single filers and $24,000 for married couples, and repeal of personal exemptions and miscellaneous itemized deductions.

    Most of the legislation’s tax cuts for individuals would become effective in January 2018 and expire in 2025 (and revert to the rules prior to this legislation) to comply with Senate budget rules. However, the reduction in the corporate rate would become effective in January 2018 and be permanent.

    In a statement issued after passage of the tax package, AICPA President and CEO Barry C. Melancon, CPA, CGMA, said the legislation contains several provisions that should be welcomed by CPAs and their clients. He expressed disappointment, however, over lawmakers’ decision to exclude CPAs from the measure’s treatment of pass-through entities. “Congress should have provided parity for pass-throughs, regardless of their line of business, in order to achieve a fairer, simpler, and more competitive tax code,” he said. “The AICPA pointedly and repeatedly made the case that all professional service firms – including accounting firms – should have received the new deduction.”

    The CPA profession’s advocacy led to the inclusion of several beneficial provisions in the final tax package. Specifically, Congress expanded the number of taxpayers who may use the cash method of accounting without further restricting its use. Lawmakers also decided to adopt many AICPA supported provisions, including:

    • Retained the business interest expense deduction for small businesses (under $25 million)
    • Preserved the current tax treatment of nonqualified deferred compensation
    • Simplified the kiddie tax
    • Simplified the inventory rules for small businesses
    • Expanded the exception for small businesses from the uniform capitalization rules
    • Removed computer or peripheral equipment from the definition of listed property
    • Provided consideration of an inflation index
    • Allowed nonresident aliens as qualifying beneficiaries of an electing small business trust
    • Repealed the PEASE phase-out of itemized deductions
    • Repealed the technical terminations rule for partnerships
    • Repealed the corporate Alternative Minimum Tax

    “In anticipation of implementation of these and other changes to the tax code, the AICPA is prepared to guide our members through the legislation’s intricacies and impact,” Melancon said in the statement. “The nation’s CPAs can count on us during this time of transition – and beyond.”

    To learn more about the CPA profession’s views on tax reform, visit the AICPA’s Tax Reform Resource Center.


  • 12/20/2017 3:38 PM | Anonymous

    NDSU has a scholarship fund in the name of Terry Knoepfle, CPA.

    Terry was a past president of the North Dakota CPA Society.

    For more information about the fund, contact 701-400-2681 or cody @ndsualumni.com



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