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.
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“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
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