Quickfinder Updates

The Updates page provides information supplementing that in the Quickfinder Handbooks. Updates are arranged by publication, or by development type for broader developments that may impact multiple publications (such as tax legislation or late-breaking developments impacting 2016 returns). We invite you to visit this page regularly to view the most recent updates. For continued coverage of tax developments throughout the year, we recommend the Quickfinder Tax Tips Newsletter.

1040 Quickfinder Handbook (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Outside Back Cover; Pages 17-2 and 17-6)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]
  • [2/2/17] Kansas (Page 2-9)
    • Kansas revised the 2016 tax computation worksheet in its instructions to account for the new tax exemption for single taxpayers with taxable income of $5,000 or less and married taxpayers with taxable income of $12,500 or less. This changed the 2016 Quick Tax Method computation. For the updated worksheet, click here.
  • [1/11/17] Preparer Due Diligence Requirement for Certain Tax Credits (Pages 12-5 and 12-9)
    • On December 5, 2016, the IRS released temporary regulations (TD 9799) that implement the PATH Act expansion of the preparer due diligence penalties under IRC Sec. 6695(g) to the (1) child tax credit, (2) additional child tax credit and (3) American Opportunity Credit. Previously, the penalty applied only to the earned income tax credit. Preparers must use Form 8867, Paid Preparer’s Due Diligence Checklist, to certify that they have confirmed their clients’ eligibility for these credits. The expanded penalty rules apply for tax years beginning after 2015. Proposed regulations, which mirror the temporary regulations, were also issued. Temp. Reg. 1.6695-2T; Prop. Reg. 1.6695-2. Click here for TD 9799.
  • [1/11/17] 2016 State and Local Sales Tax Deduction (Page 3-13)
    • The IRS has released the state and local sales tax deduction worksheet and the accompanying tables for computing the deduction, which were not available at the time of publication. For the worksheet and tables, click here.
  • [1/5/17] Medical Reimbursement Plans (Page 6-4)
    • On 12/13/16, the President signed into the law the "21st Century Cures Act." The Act extends the relief previously granted under Notice 2015-17 to plan years beginning before 2017. Thus, small employers (average of less than 50 employees in the prior tax year) that maintain an employer payment plan to pay or reimburse employees for individual health care policy premiums before 2017 will not be liable for the Section 4980D penalty. For Notice 2015-17, click here.

      Note: The Act also provides that a "qualified small employer health reimbursement arrangement (HRA)" is exempt from the Section 4980D penalty for tax years beginning after 2016.

All States Quickfinder Handbook (2016 Tax Year)

  • [1/30/17] Kansas (Pages KS-3 and KS-7)
    • Kansas revised the tax computation worksheet in its instructions to account for the new tax exemption for single taxpayers with taxable income of $5,000 or less and married taxpayers with taxable income of $12,500 or less. For details, click here. For its effect on the front cover, click here.

Depreciation Quickfinder Handbook (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Outside Back Cover)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]

Health Care Reform Quickfinder Handbook (2017 Edition)

  • [1/11/2017]
    • The 21st Century Cures Act was signed into law on December 13, 2016, which was after the Health Care Reform Quickfinder Handbook was published. Additionally, final regulations under IRC Sec. 36B and IRS Notice 2016-70 were released after the publication of the Handbook. Therefore, a packet containing “marked-up” redline changes to the affected pages in your handbook are available. Click here for the packet.

Individuals—Special Tax Situations Quickfinder Handbook (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Outside Back Cover)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]

Premium Quickfinder Handbook (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Inside Back Cover, Outside Back Cover; Pages 17-1, 20-1, 25-2 and 25-6)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]
  • [2/2/17] Kansas (Page 2-9)
    • Kansas revised the 2016 tax computation worksheet in its instructions to account for the new tax exemption for single taxpayers with taxable income of $5,000 or less and married taxpayers with taxable income of $12,500 or less. This changed the 2016 Quick Tax Method computation. For the updated worksheet, click here.
  • [1/30/17] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page 15-1)
  • [1/12/17] 2017 Federal Withholding Computation — Quick Tax Method (Page 23-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2017 federal income tax withholding, click here.
  • [1/12/17] Where to File: Business Returns Filing Addresses — 2016 Returns (Page 15-1)
    • For the Quickfinder table showing filing addresses for 2016 business tax returns, click here.
  • [1/11/17] Preparer Due Diligence Requirement for Certain Tax Credits (Pages 12-5 and 12-9)
    • On December 5, 2016, the IRS released temporary regulations (TD 9799) that implement the PATH Act expansion of the preparer due diligence penalties under IRC Sec. 6695(g) to the (1) child tax credit, (2) additional child tax credit and (3) American Opportunity Credit. Previously, the penalty applied only to the earned income tax credit. Preparers must use Form 8867, Paid Preparer’s Due Diligence Checklist, to certify that they have confirmed their clients’ eligibility for these credits. The expanded penalty rules apply for tax years beginning after 2015. Proposed regulations, which mirror the temporary regulations, were also issued. Temp. Reg. 1.6695-2T; Prop. Reg. 1.6695-2. Click here for TD 9799.
  • [1/11/17] 2016 State and Local Sales Tax Deduction (Page 3-13)
    • The IRS has released the state and local sales tax deduction worksheet and the accompanying tables for computing the deduction, which were not available at the time of publication. For the worksheet and tables, click here.
  • [1/5/17] Medical Reimbursement Plans (Pages 6-4 and 18-15)
    • On 12/13/16, the President signed into the law the “21st Century Cures Act.” The Act extends the relief previously granted under Notice 2015-17 to plan years beginning before 2017. Thus, small employers (average of less than 50 employees in the prior tax year) that maintain an employer payment plan to pay or reimburse employees for individual health care policy premiums before 2017 will not be liable for the Section 4980D penalty. For Notice 2015-17, click here.

      Note: The Act also provides that a “qualified small employer health reimbursement arrangement (HRA)” is exempt from the Section 4980D penalty for tax years beginning after 2016.

Quickfinder Annual Tax Update (2016 Edition)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Pages 1-7, 1-9 and 6-3)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]

Quickfinder Tax Tables for Business Returns (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Page 1)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]

Small Business Quickfinder Handbook (2016 Tax Year)

  • [2/7/17] Form 7004 Final Instructions Allow Six-month Extension for Calendar-year C Corporations (Outside Front Cover, Outside Back Cover; Pages C-1, F-1, Q-2 and Q-6)
    • The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 established new due dates for Form 1120, U.S. Corporation Income Tax Return. For tax years beginning after 12/31/15, the Form 1120 due date is generally April 15 for calendar-year corporations, with an automatic five-month extension allowed (generally to September 15). However, under IRC Sec. 6081(a), the IRS may grant a reasonable extension (generally limited to six months) for filing any return. The IRS has released final instructions for Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, that grant an automatic six-month extension (generally to October 15, but to October 16, 2017 as October 15 falls on a Sunday this year) to calendar-year C corporations rather than the statutory five-month extension. It appears the IRS is using its authority under IRC Sec. 6081(a) to allow for a longer extension period. [Instructions for Form 7004 (Rev. December 2016), available at www.irs.gov]
  • [1/30/17] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page A-1)
  • [1/12/17] 2017 Federal Withholding Computation — Quick Tax Method (Page I-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2017 federal income tax withholding, click here.
  • [1/12/17] Where to File: Business Returns Filing Addresses — 2016 Returns (Page A-1)
    • For the Quickfinder table showing filing addresses for 2016 business tax returns, click here.
  • [1/5/17] Employer Payment Plans (Pages D-15, K-10 and P-3)
    • On 12/13/16, the President signed into the law the “21st Century Cures Act.” The Act extends the relief previously granted under Notice 2015-17 to plan years beginning before 2017. Thus, small employers (average of less than 50 employees in the prior tax year) that maintain an employer payment plan to pay or reimburse employees for individual health care policy premiums before 2017 will not be liable for the Section 4980D penalty. For Notice 2015-17, click here.

      Note: The Act also provides that a “qualified small employer health reimbursement arrangement (HRA)” is exempt from the Section 4980D penalty for tax years beginning after 2016.

Tax Legislation

  • [1/12/16] Consolidated Appropriations Act, 2016 (Public Law 114-113)
    • The Consolidated Appropriations Act, 2016 (CAA) includes many tax provisions in its Division Q—Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and several more in its Division P—Tax-Related Provisions.

      Staying true to the Quickfinder tradition of providing often-needed reference information in a concise, easy-to-use format, we’ve created tables that summarize key CAA tax provisions applicable to average individuals and small businesses. The CAA also includes many specialized tax provisions that impact real estate investment trusts (REITs), IRS personnel, court proceedings, and deductions and credits that apply to only a few (or very large) businesses—we’ve excluded those to help tax professionals quickly locate the information they will most often need during this tax season and the years ahead.

      Click here for the Quickfinder tables summarizing the key tax provisions of the CAA, which are organized as follows:

      • CAA Division Q (PATH Act) Tax Provisions
        • Expired Provisions Extended Permanently
        • Expired Provisions Extended Through 2019
        • Expired Provisions Extended Through 2016
        • Non-Extender Provisions Added or Changed

      • CAA Division P Tax Provisions Added or Changed

Tax Planning for Individuals Quickfinder Handbook (2016 Edition)

  • [4/27/16] 2016 Vehicle Depreciation Limits and Lease Income Inclusion Tables (Pages 1-2, 1-29, 4-5, 4-6, 4-7)
    • The IRS released the inflation-adjusted Section 280F depreciation deduction limits for owners of passenger autos, light trucks, and vans first placed in service during 2016; and lease inclusion amounts for lessees of passenger autos, trucks, and vans first leased in 2016. The 2016 depreciation limit for passenger autos is $3,160 for the first year or $11,160 with bonus depreciation. These amounts are the same as the 2015 limits (after the bonus depreciation was retroactively extended) for all tax years. The 2016 limit for trucks and vans is $3,560 for the first tax year or $11,560 with bonus depreciation. These limits are $100 higher than those in 2015, except for the third year amount, which is unchanged from 2015. Click on the following link for the text of Rev. Proc. 2016-23.

Late-breaking Developments Impacting 2016 Returns*

*Developments occurring after publication of handbooks but impacting 2016 returns

  • [1/11/17] Recent Developments Roundup
    • 2017 Standard Mileage Rates. Beginning on 1/1/17, the standard mileage rates for cars, vans, pickups and panel trucks are 53.5 cents per mile for business miles, 17 cents per mile for medical or moving purposes and 14 cents per mile for charitable purposes. The business expense rate is down half a cent per mile from 2016, and the medical and moving expense rates are down two cents per mile from the 2016 rates. The charitable rate is set by law and remains unchanged from last year’s rate. The portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012 and 2013, 22 cents per mile for 2014, 24 cents per mile for 2015 and 2016, and 25 cents per mile for 2017. When computing the allowance under a Fixed and Variable Rate (FAVR) plan, the standard vehicle cost cannot exceed $27,900 for autos or $31,300 for trucks and vans. (IRS Notice 2016-79)
    • ACA Information Reporting Deadlines Extended. The IRS has announced extended due dates and penalty relief for 2016 information reporting mandated by the Affordable Care Act (ACA). The ACA requires detailed information reporting for insurers, self-insured employers and certain other providers of minimum essential coverage under IRC Sec. 6055, as well as employers with 50 or more full-time employees. Employers, insurers and other providers will now have until 3/2/17, rather than 1/31/17, to issue the 2016 forms to individuals for reporting about the health coverage on Form 1095-B, Health Coverage, and 1095-C, Employer-Provided Health Insurance Offer and Coverage. Good-faith transition relief from penalties under IRC Secs. 6721 and 6722 for 2016 information reporting under IRC Secs. 6055 and 6056 also is extended. Note: Because of the extended due date, some individual taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2016 tax return. Taxpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns. Taxpayers do not need to wait to receive Forms 1095-B and 1095-C before filing their returns. (IRS Notice 2016-70)
    • IRS Explains Scope of New De Minimis Error Safe Harbor. The IRS has released a notice that explains the scope of the new de minimis error safe harbor for information returns and payee statements created by the PATH Act. The notice also provides procedures for payees to elect to receive a corrected statement. Under the safe harbor, payers do not have to provide an amended information return and payee statement to correct an error that is $100 or less ($25 or less in the case of errors involving tax withholding), unless the payee makes an election requesting a corrected statement. In general, a payee may make the election in the calendar year the statements are required to be furnished. A payer may prescribe any reasonable manner for the payee to make the election, including in writing, online or by telephone. The notice is effective for information returns required to be filed, and payee statements required to be furnished, after 12/31/16. (IRS Notice 2017-9)