U.S. government debt prices were higher on Wednesday morning amid a volatile week on Wall Street, with investors monitoring progress on a coronavirus vaccine and economic reopening efforts. At around 2:10 a.m. ET, the yield on the benchmark 10-year Treasury note dipped to 0.6931% and the yield on the 30-year Treasury bond was down at 1.4181%. […]
Treasury yields fall as investors monitor coronavirus vaccine and recovery hopes
U.S. government debt prices were higher Tuesday morning, coming off a surge during the previous session following news of promising early testing of an experimental coronavirus vaccine. At around 2:10 a.m. ET, the yield on the benchmark 10-year Treasury note was down at 0.7094% and the yield on the 30-year Treasury bond slipped to 1.4273%. Yields […]
Final regs. clarify when interest in corporation is stock vs. debt
News Corporations & Shareholders By Dave Strausfeld, J.D. {:else} {timeSince} {/if} {@if cond=”{isCGMA}”} {:else} {/if} {/.} The IRS on Wednesday issued final regulations (T.D. 9897) regarding the classification of certain related-party interests in corporations as stock vs. indebtedness. The distinction between debt and equity can have important tax consequences because, for instance, a corporation can […]
Proposed rules govern deductions and reporting for restitution
The IRS issued proposed regulations Wednesday (REG-104591-18) on the deductibility of fines, penalties, and certain other amounts after Sec. 162(f) was amended by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. The rules expand on the interim guidance in Notice 2018-23. Sec. 162(f), as amended by the TCJA, disallows a […]
IRS allows midyear changes to health coverage, dependent care elections
As part of its response to the coronavirus pandemic, the IRS announced Tuesday in Notice 2020-29 that it is permitting increased flexibility for midyear elections under a Sec. 125 cafeteria plan during calendar year 2020 for employer-sponsored health coverage, health flexible spending arrangements (FSAs), and dependent care assistance programs. Elections under a Sec. 125 cafeteria […]
Taxpayers must act soon for direct deposit of stimulus payments
The IRS announced Friday that time is running out for taxpayers to go to the Get My Payment website to enter their direct deposit information in order to receive an electronic economic impact payment (IR-2020-92). Taxpayers must enter their bank account information, if needed, by noon on Wednesday, May 13. After that date, any stimulus […]
Trusts and estates are permitted certain deductions
The IRS on Thursday issued proposed regulations (REG-113295-18) to clarify that certain deductions are allowed to an estate or nongrantor trust because they are not miscellaneous itemized deductions. According to the proposed rules, which formally adopt guidance first issued in Notice 2018-61, these deductions are not affected by the suspension of the deductibility of miscellaneous […]
AICPA proposes broad range of tax relief to aid economic recovery
The AICPA on Thursday made a broad range of legislative recommendations to encourage economic recovery in the wake of the COVID-19 pandemic. In a letter from Christopher Hesse, CPA, chair of the AICPA Tax Executive Committee, to the chairs and ranking members of Congress’s tax-writing committees, the AICPA says the pandemic has “highlighted the antiquated […]
AICPA supports bill that would make PPP-funded expenses deductible
Legislation introduced in the Senate on Tuesday would overrule an IRS notice and clarify that ordinary expenses funded by Paycheck Protection Program (PPP) loans are deductible by taxpayers. The bill, the Small Business Expenses Protection Act of 2020, S. 3612, is currently in the Senate Finance Committee and is supported by the AICPA. The PPP […]
AICPA challenging nondeductibility of PPP-related expenses
The IRS released guidance (Notice 2020-32) to explain that a taxpayer that receives a loan through the Paycheck Protection Program (PPP) is not permitted to deduct expenses that are normally deductible under the Code, to the extent the expenses were reimbursed by a PPP loan that was then forgiven. The PPP was created by Section […]