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 2015 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 (2015 Tax Year)

  • [1/15/16] Reporting Capital Gains and Losses — Form 8949 (Page 3-12)
    • The IRS has released the complete list of Form 8949 codes, which was not available at the time of publication. For a table of the codes, click here.
  • [1/15/16] 2015 State and Local Sales Tax Deduction (Page 3-13)
    • The state and local sales tax deduction has been extended to 2015. For a worksheet and the accompanying IRS tables for computing the deduction, click here.
  • [1/15/16] Where to File Forms 1040, 1040ES and 4868 (Page 3-14)
    • The IRS had not released all final filing addresses at the time of publication. For the filing addresses, click here.
  • [1/15/16] December 2015 Legislation — Handbook Supplement
    • The Consolidated Appropriations Act, 2016, which includes the Protecting Americans from Tax Hikes Act of 2015, was signed into law on December 18, 2015, which was after the 1040 Quickfinder Handbook was published. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts is available. Click here for the packet (binder owners, see below).
    • Binder/loose-leaf handbook owners: If you purchased the 3-ring binder/loose-leaf version of the handbook and have access to a duplex (two-sided) printer, click here for a packet of replacement pages for your handbook.

All States Quickfinder Handbook (2015 Tax Year)

  • [3/24/16] Connecticut (Page CT-4)
    • Connecticut has updated the table for the property tax credit. For the new table, click here.
  • [2/25/16] Connecticut (Page CT-6)
    • Connecticut has updated the address for estimated tax payments. For the new address, click here.
  • [2/25/16] Vermont (Page VT-2)
    • Vermont issued additional instructions regarding the new minimum tax. For details, click here.
  • [2/12/16] 2015 Individual State Conformity to Federal Bonus Depreciation and Expanded Sec. 179 Expensing Rules Chart
    • State guidance from Alabama and Iowa was released after the time of publication that affected the chart. For the updated chart, click here.

Depreciation Quickfinder Handbook (2015 Tax Year)

  • [1/25/16] December 2015 Legislation — Handbook Supplement
    • The Consolidated Appropriations Act, 2016, which includes the Protecting Americans from Tax Hikes Act of 2015, was signed into law on December 18, 2015, which was after the Depreciation Quickfinder Handbook was published. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts is available. Click here for the packet.

Health Care Reform Quickfinder Handbook (2016 Edition)

  • [1/11/16] December 2015 Legislation — Handbook Supplement
    • The Protecting Americans from Tax Hikes Act of 2015 and the Consolidated Appropriations Act of 2016 were signed into law on December 18, 2015, which was after the Health Care Reform Quickfinder Handbook was published. Additionally, IRS Notices 2015-87 and 2016-4 were released after the publication of the Handbook. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts and notices are available. Click here for the packet.

Individuals—Special Tax Situations Quickfinder Handbook (2015 Tax Year)

  • [1/12/16] December 2015 Legislation — Handbook Supplement
    • The Consolidated Appropriations Act, 2016, which includes the Protecting Americans from Tax Hikes Act of 2015, was signed into law on December 18, 2015, which was after the Individuals—Special Tax Situations Quickfinder Handbook was published. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts is available. Click here for the packet.

Premium Quickfinder Handbook (2015 Tax Year)

  • [2/3/16] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page 15-1)
  • [1/25/16] Where to File: Business Returns Filing Addresses — 2015 Returns (Page 15-1)
    • For the Quickfinder table showing filing addresses for 2015 business tax returns, click here.
  • [1/25/16] 2016 Federal Withholding Computation — Quick Tax Method (Page 23-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2016 federal income tax withholding, click here.
  • [1/15/16] Reporting Capital Gains and Losses — Form 8949 (Page 3-12)
    • The IRS has released the complete list of Form 8949 codes, which was not available at the time of publication. For a table of the codes, click here.
  • [1/15/16] 2015 State and Local Sales Tax Deduction (Page 3-13)
    • The state and local sales tax deduction has been extended to 2015. For a worksheet and the accompanying IRS tables for computing the deduction, click here.
  • [1/15/16] Where to File Forms 1040, 1040ES and 4868 (Page 3-14)
    • The IRS had not released all final filing addresses at the time of publication. For the filing addresses, click here.
  • [1/15/16] December 2015 Legislation — Handbook Supplement
    • The Consolidated Appropriations Act, 2016, which includes the Protecting Americans from Tax Hikes Act of 2015, was signed into law on December 18, 2015, which was after the Premium Quickfinder Handbook was published. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts is available. Click here for the packet (binder owners, see below).
    • Binder/loose-leaf handbook owners: If you purchased the 3-ring binder/loose-leaf version of the handbook and have access to a duplex (two-sided) printer, click here for a packet of replacement pages for your handbook.

Small Business Quickfinder Handbook (2015 Tax Year)

  • [2/3/16] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page A-1)
  • [1/25/16] Where to File: Business Returns Filing Addresses — 2015 Returns (Page A-1)
    • For the Quickfinder table showing filing addresses for 2015 business tax returns, click here.
  • [1/25/16] 2016 Federal Withholding Computation — Quick Tax Method (Page I-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2016 federal income tax withholding, click here.
  • [1/15/16] December 2015 Legislation — Handbook Supplement
    • The Consolidated Appropriations Act, 2016, which includes the Protecting Americans from Tax Hikes Act of 2015, was signed into law on December 18, 2015, which was after the Small Business Quickfinder Handbook was published. Therefore, a packet containing “marked-up” redline changes to the pages in your handbook affected by the Acts is available. Click here for the packet (binder owners, see below).
    • Binder/loose-leaf handbook owners: If you purchased the 3-ring binder/loose-leaf version of the handbook and have access to a duplex (two-sided) printer, click here for a packet of replacement pages for your handbook.

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 2015 Returns*

*Developments occurring after publication of handbooks but impacting 2015 returns

  • [3/29/16] Basis Consistency Reporting for Inherited Property
    • IRS Extends Deadline to June 30. The Basis Consistency Reporting for Inherited Property item in the 3/10/16 Recent Developments Roundup below addresses the 3/31/16 extended due date for providing statements to the IRS and to beneficiaries under the rules requiring consistent basis reporting for estate tax and income tax purposes. Now, the IRS has again delayed the due date for providing these statements, this time until 6/30/16. According to the IRS, numerous comments have been received that executors have not had enough time to adopt changes that would enable them to accurately complete the required forms. (IRS Notice 2016-27)
  • [3/10/16] Recent Developments Roundup
    • Basis Consistency Reporting for Inherited Property. The IRS has issued temporary regulations (TD 9757) that confirm the due date of 3/31/16 for providing statements to the IRS and to beneficiaries under the rules requiring consistent basis reporting for estate tax and income tax purposes. Also issued were proposed regulations (REG-127923-15) that provide guidance regarding the requirement that a recipient’s basis in certain property acquired from a decedent be consistent with the value of the property as finally determined for federal estate tax purposes, as well as other rules for preparing those statements. The requirement to file the information returns doesn’t extend to estate tax returns (Forms 706) that are being filed solely so that a spouse can claim the unused estate tax exclusion amount of a deceased spouse (the so-called portability election). The regulations apply to property acquired from a decedent or by reason of the death of a decedent whose return required by Code Section 6018 is filed after 7/31/15. (Prop. Regs. §1.1014-10, 1.6035-1 and 1.0635-2; Temp. Reg. §1.6035-2T)
      Note: Previously, the IRS released final Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, which is used to satisfy the basis consistency reporting requirements. The form and its separate instructions are available in the Forms and Publications section of www.irs.gov. The reporting requirements were originally signed into law on 7/31/15 as part of the Highway Act and are effective for Forms 706 filed after 7/31/15. Under the law, statements were to be furnished to the IRS and beneficiaries 30 days after the Form 706 is filed or, if earlier, 30 days after the Form 706 is due (including extensions). However, Notice 2015-57 delayed the due date to 2/29/16 for statements otherwise due before then. Subsequently, Notice 2016-19 further delayed the due date to 3/31/16 for statements otherwise due before 3/31/16.

    • Foreign Housing Cost Exclusion. A U.S. citizen or resident alien living abroad can elect to exclude the foreign earned income and housing cost amount from gross income (subject to certain limitations). The housing cost exclusion under Code Section 911 is calculated based on the number of days physically present in the foreign location. In addition, the IRS allows a higher housing cost ceiling for taxpayers living in certain high-cost geographic locations (relative to the U.S.). The IRS released the table of adjusted limitations on foreign housing expenses for 2016 and indicated that some taxpayers may elect to apply the 2016 limitations for tax years beginning in 2015—potentially impacting 2015 returns. (IRS Notice 2016-21)

    • Transition Relief for Employers to Claim Work Opportunity Tax Credit. The Work Opportunity Tax Credit (WOTC) allows employers who hire members of certain targeted groups to claim a credit against income tax of a percentage of first-year wages. The credit was retroactively reinstated and extended through 12/31/19 by the PATH Act of 2015. The PATH Act also expanded the targeted groups of individuals that can qualify an employer for the WOTC to include qualified long-term unemployment recipients [as defined in Code Section 51(d)(15)]. The IRS has issued a Notice providing guidance and transition relief for eligible employers who want to claim the WOTC. The relief gives employers until 6/29/16 to file the necessary form to claim the credit for eligible workers who begin work for the employer on or before 5/31/16. For members of the targeted groups listed in Code Section 51(d)(1)(A) through (d)(1)(I) (targeted groups other than qualified long-term unemployment recipients), the transition relief applies to workers who begin work on or after 1/1/15 and thus may facilitate claiming the WOTC for such workers on employers’ 2015 returns. For qualified long-term unemployment recipients, the transition relief applies to workers who begin work on or after 1/1/16. (IRS Notice 2016-22)

  • [2/3/16] Recent Developments Roundup
    • 2016 Standard Mileage Rates. Beginning on 1/1/2016, the standard mileage rates for cars, vans, pickups and panel trucks are 54 cents per mile for business miles, 19 cents per mile for medical or moving purposes and 14 cents per mile for charitable purposes. The business expense rate is down 3.5 cents per mile from 2015, and the medical and moving expense rates are down four cents per mile from the 2015 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, and 24 cents per mile for 2015 and 2016. When computing the allowance under a Fixed and Variable Rate (FAVR) plan, the standard vehicle cost cannot exceed $28,000 for autos or $31,000 for trucks and vans. (IRS Notice 2016-1)

    • ACA Information Reporting Deadlines Extended. Applicable large employers have until 3/31/16 to provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to each full-time employee. Form 1095-C is used to report information on health insurance coverage offered (or not offered) to employees. Additionally, the forms do not have to be filed with the IRS until 5/31/16, if filing on paper, or 6/30/16, if filing electronically. Similar extensions are provided for entities that must report information on Form 1095-B, Health Coverage. Individuals who file their personal income tax returns before receiving the applicable reporting forms and rely on other available information will not need to amend their returns once they receive Form 1095-B or 1095-C if the information is different. (IRS Notice 2016-4)

    • Repeal of Automatic Extension for Certain Employee Benefit Plans. As part of the Fixing America’s Surface Transportation (FAST) Act, the automatic 3½-month extension for filing the Form 5500 series annual returns/reports is repealed. The automatic 3½-month extension was to have been available for tax years beginning after 12/31/15, and was enacted as part of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the Highway Act). Instead, the former 2½-month extension period is restored. (FAST Act §32104)

    • Stock Received in Insurance Company Demutualization Has No Basis. In two recent decisions, the Ninth Circuit has held that taxpayers, who were policyholders in mutual insurance companies, had no basis in the stock they received when the insurance companies demutualized. Noting that the taxpayers had the burden of establishing basis and that they didn’t meet that burden, the Court held that the taxpayers acquired the membership rights at no cost, as an incident of the structure of mutual insurance policies. [Dorrance, 116 AFTR 2d 2015-6992 (9th Cir. 2015); Reuben, 117 AFTR 2d 2016-333 (9th Cir. 2016)]

      Note: These cases conflict with the Federal Circuit’s ruling in Fisher, 105 AFTR 2d 2010-357 (Fed. Cir. 2009), which held that the taxpayer had basis in the shares he acquired in a demutualization.

    • Tax Relief for Certain Students Whose Education Loans Were Discharged. The IRS has announced that taxpayers who took out federal student loans to finance attendance at schools owned by Corinthian Colleges, Inc., and whose loans were discharged under the Department of Education’s Defense to Repayment or Closed School discharge processes, will not have to recognize gross income as a result of the debt discharge. Furthermore, these taxpayers will not be required to increase their taxes or income if they claimed Section 25A education credits or took Section 221 interest deductions or Section 222 higher education expense deductions in a prior year for payments made with proceeds of these discharged loans. This tax treatment is effective for tax years beginning in 2015. (Rev. Proc. 2015-57)
  • [12/28/15] Capitalization vs. Expensing — IRS Guidance
    • De Minimis Safe Harbor for Deducting Repair Expenses Increased to $2,500. Under the tangible property regulations (TPRs), taxpayers must generally capitalize amounts paid to acquire or produce a unit of property. However, taxpayers can make a safe-harbor election to currently expense a de minimis amount of such expenditures. The de minimis amount for a taxpayer without an Applicable Financial Statement (AFS) (such as an audited financial statement or one required to be filed with the SEC) is $500 [Reg. §1.263(a)-1(f)(1)(ii)(D)]. This amount, which applies to many small businesses, has been criticized as not large enough. In response to comments, the IRS has increased the de minimis safe-harbor amount for a taxpayer without an AFS to $2,500, effective for costs incurred in tax years beginning after 2015. However, the IRS will not challenge this issue in pre-2016 tax years if the other requirements of Reg. §1.263(a)-1(f)(1)(ii) are met. Click on the following links for the text of the IRS guidance in Notice 2015-82 and News Release IR-2015-133.

    • Retail and Restaurant Establishments Get Relief from the Tangible Property Regulations. An IRS revenue procedure provides a safe harbor accounting method that taxpayers in the retail and restaurant industries can use to determine whether costs paid to refresh or remodel a qualified building are deductible repair and maintenance expenses under Code Section 162(a), or if they must be capitalized under Code Section 263(a) or Code Section 263A. The safe harbor method minimizes the need to perform a detailed factual analysis to determine whether each remodel-refresh cost is for repairs and maintenance or for an improvement. Under the safe harbor, a qualified taxpayer deducts 75% of its qualified costs as repairs and maintenance and capitalizes the remaining 25% of its qualified costs. Click on the following link for the text of Rev. Proc. 2015-56, which is effective for tax years beginning after 2013.