AZ passes conformity at last
In the “better late than never maybe” category, the Arizona legislature passed conformity to the federal tax code at the end of May. The law, HB 2757, fully conforms Arizona to the federal tax reform law retroactively to 2018. The conformity for 2018 created an estimated $155 million windfall for the state, which the state is keeping. For 2019, tax brackets and numerous other changes attempt to restore the tax situation to close what Arizona’s tax burden was before than reform conformity. For more info:
Final regulations issued for charitable contributions and state tax credits
IRS finalized the regulations for taking federal charitable contribution deductions when those contributions receive a state tax credit. The regulations provide exceptions for dollar-for-dollar state tax deductions and where tax credits of no more than 15 percent of the amount given.
Arizona raises TPT penalties
AzDOR is pushing electronic filing of TPT (sales tax) returns. There are penalties for filing a paper return and for filing late, even if a zero tax due. For more info, visit https://azdor.gov/e-services/e-services-businesses-arizona
IRS releases draft 2020 W-4 form
After much controversy, the IRS is showing off its 2020 W-4 in draft form. IRS reminds that for 2019, the official current W-4 should still be used. Workers are also encouraged to use the new Paycheck Checkup tool.
EA renewal fees jump Nov. 1
The Enrolled Agent application and renewal user fee increases from $30 to $67, effective Nov. 1. That’s the beginning of the next renewal cycle (for SSN’s ending 4, 5 or 6. If your SSN ends in 0-3 (2019 cycle), get your renewal in now before the fee goes up. Applications and renewals are electronically submitted via Pay.gov.
IRS announcements & guidance
- Tax Cuts & Jobs Act (TCJA) Center
- Pub 5307, Tax Reform Basics for Individuals and Families
- 20% Qualified Business Income Deduction
- Charitable contributions and state tax credits
- 2019 inflation adjustments: Rev.Proc. 2018-57
- 2019 mileage rates
- Deducting business meals: Notice 2018-76
- FAQ on 20% Deduction for Qualified Business Income
- Section 199A guidance
- Arizona Booklet X
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