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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 2018 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 (2018 Tax Year)

  • [1/25/19] State – Arkansas (Page 2-4)
    • At the time of publication, final 2018 Arkansas state income tax filing requirement thresholds and the 2018 tax rate schedule were not available. Click here for the updated page of the handbook. 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 the replacement pages for your handbook.
  • [1/25/19] State – Oregon (Page 2-17)
    • At the time of publication, final 2018 Oregon state income tax filing requirement thresholds were not available. Click here for the updated page of the handbook. 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 the replacement pages for your handbook.
  • [1/25/19] 2019 Form 1040 Quick Tax Method
    • Click here for the 2019 Form 1040 Quick Tax Method. At the time of publication, the IRS had not released the 2019 individual income tax brackets.
  • [1/11/19] Quick Facts Data Sheet (Page 3-1)
    • The IRS has released the 2019 inflation-adjusted amounts, which were not available at the time of publication. Click here for the updated Quick Facts Data Sheet. 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 the replacement pages for your handbook.
  • [1/11/19] 2018 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.
  • [1/11/19] Where to File Form 1040-ES for 2019 (Page 3-14)
    • The IRS has released filing addresses for Form 1040-ES for 2019, which were not available at the time of publication. Click here for the filing addresses. 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 the replacement page for your handbook.

All States Quickfinder Handbook (2018 Tax Year)

  • [3/7/19] Post-publication Developments – Handbook Supplement
    • The All States Quickfinder Handbook post-publication updates packet has been revised following a change of position by the Oklahoma Tax Commission. The Commission has decided to allow the deduction for providing foster care for the 2018 tax year, so Oklahoma Page OK-3 is correct as originally published in the All States Quickfinder Handbook. The OK-3 replacement page has been removed. Click here for the packet.
  • [3/4/19] Military Spouses
    • Section 302 of the Veterans Benefits and Transition Act of 2018 provides that the spouse of any servicemember may elect to use the same residence for tax purposes as the servicemember. As such, the military spouse has the option to remain a tax resident of the state in which he is domiciled or elect to be treated as a tax resident of the state in which the servicemember is domiciled.

Depreciation Quickfinder Handbook (2018 Tax Year)

  • [1/25/19] Post-publication Developments — Handbook Supplement
    • Developments that impact material in the Depreciation Quickfinder Handbook and the preparation of 2018 income tax returns have occurred since the handbook was printed. Therefore, a packet containing “marked-up” redline changes to the affected pages in your handbook is available. Click here for the packet.

Health Care Reform Quickfinder Handbook (2019 Edition)

  • [1/16/19] Final 2018 Form 8965 Instructions, Extended Deadlines for Forms 1095-B and 1095-C
    • New IRS guidance, including changes to the Form 8965 instructions, 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 (2018 Tax Year)

    • No updates at this time.

Premium Quickfinder Handbook (2018 Tax Year)

  • [2/6/19] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page 15-1)
  • [2/1/19] Where to File: Business Returns Filing Addresses — 2018 Returns (Page 15-1)
    • For the Quickfinder table showing filing addresses for 2018 business tax returns, click here.
  • [1/29/19] Business Quick Facts Data Sheet (Page 15-1)
    • The IRS has released the 2019 inflation-adjusted amounts, which were not available at the time of publication. Click here for the updated Business Quick Facts Data Sheet. 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 the replacement page for your handbook.
  • [1/25/19] State – Arkansas (Page 2-4)
    • At the time of publication, final 2018 Arkansas state income tax filing requirement thresholds and the 2018 tax rate schedule were not available. Click here for the updated page of the handbook. 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 the replacement pages for your handbook.
  • [1/25/19] State – Oregon (Page 2-17)
    • At the time of publication, final 2018 Oregon state income tax filing requirement thresholds were not available. Click here for the updated page of the handbook. 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 the replacement pages for your handbook.
  • [1/25/19] 2019 Form 1040 Quick Tax Method
    • Click here for the 2019 Form 1040 Quick Tax Method. At the time of publication, the IRS had not released the 2019 individual income tax brackets.
  • [1/25/19] 2019 Federal Withholding Computation — Quick Tax Method (Page 23-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2019 federal income tax withholding, click here.
  • [1/11/19] Quick Facts Data Sheet (Page 3-1)
    • The IRS has released the 2019 inflation-adjusted amounts, which were not available at the time of publication. Click here for the updated Quick Facts Data Sheet. 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 the replacement pages for your handbook.
  • [1/11/19] 2018 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.
  • [1/11/19] Where to File Form 1040-ES for 2019 (Page 3-14)
    • The IRS has released filing addresses for Form 1040-ES for 2019, which were not available at the time of publication. Click here for the filing addresses. 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 the replacement page for your handbook.

Quickfinder Annual Tax Update (2018 Edition)

    • No updates at this time.

Quickfinder Tax Tables for Business Returns (2018 Tax Year)

    • No updates at this time.

Quickfinder Tax Tables for Individual Returns (2018 Tax Year)

    • No updates at this time.

Small Business Quickfinder Handbook (2018 Tax Year)

  • [2/6/19] Principal Business Activity Codes — Forms 1065, 1120 and 1120S (Page A-1)
  • [2/1/19] Where to File: Business Returns Filing Addresses — 2018 Returns (Page A-1)
    • For the Quickfinder table showing filing addresses for 2018 business tax returns, click here.
  • [1/29/19] Post-publication Developments — Handbook Supplement
    • Developments that impact material in the Small Business Quickfinder Handbook and the preparation of 2018 income tax returns have occurred since the handbook was printed. Therefore, a packet containing “marked-up” redline changes to the affected pages in your handbook is available. Click here for the packet. 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 the replacement pages for your handbook.
  • [1/25/19] 2019 Federal Withholding Computation — Quick Tax Method (Page I-1)
    • For the Quickfinder worksheet and Quick Tax Method tables for use in computing 2019 federal income tax withholding, click here.

Tax Legislation

    • Updates coming soon…

Tax Planning for Individuals Quickfinder Handbook (2019 Edition)

  • [5/28/19] 2019 Vehicle Depreciation Limits and Lease Income Inclusion Table (Pages 1-16, 4-5, 4-6 and 4-7)
    • The IRS has released the Section 280F depreciation deduction limits for passenger autos (including trucks and vans) first placed in service during 2019. For passenger autos acquired before 9/28/17 and placed in service during 2019, the depreciation limits are $10,100 for the first year ($14,900 with bonus depreciation), $16,100 for the second year, $9,700 for the third year, and $5,760 for each succeeding year. For passenger autos acquired after 9/27/17 and placed in service during 2019, the depreciation limits are $10,100 for the first year ($18,100 with bonus depreciation), $16,100 for the second year, $9,700 for the third year, and $5,760 for each succeeding year. Also, the IRS has released the lease inclusion amounts for lessees of passenger autos first leased in 2019. Click on the following link for the text of Rev. Proc. 2019-26.

Late-breaking Developments Impacting 2018 Returns* *Developments occurring after publication of handbooks but impacting 2018 returns

  • [1/25/19] Qualified Business Income (QBI) Deduction Regulations and IRS Releases Following are brief summaries of recent significant QBI deduction guidance items. See the Quickfinder Tax Tips Newsletter for continuing expanded coverage of QBI deduction guidance.
    • Final and Proposed Regulations on QBI Deduction. The IRS has issued final regulations on the QBI deduction under IRC Sec. 199A. The final rules adopt many of the provisions found in regulations proposed by the IRS in August 2018, with certain revisions in response to comments. In addition, the IRS has issued another set of proposed regulations (REG-134652-18) that provide guidance on previously suspended losses, regulated investment companies, charitable remainder trusts and split interest trusts. The final regulations are effective when published in the Federal Register. However, for tax years ending in calendar year 2018, taxpayers may rely on the final regulations (in their entirety) or the August 2018 proposed regulations (in their entirety). The additional proposed regulations would apply to tax years ending after the date they are adopted as final. However, taxpayers may rely on the rules pending their finalization. (Regs. 1.199A-1 through -6 and 1.643-1; Prop. Regs. 1.199A-3 and -6)
    • QBI Deduction Safe Harbor for Rental Real Estate. In a Notice that includes a proposed Revenue Procedure, the IRS has provided a safe harbor under which a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction. To qualify for the safe harbor, (1) separate books and records must be maintained for each enterprise; (2) 250 or more hours of rental services must be performed and (3) contemporaneous records must be maintained. The safe harbor does not apply to real estate used by the taxpayer as a residence under IRC Sec. 280A or real estate rented under a triple net lease. An enterprise that fails safe harbor requirements may still qualify as a trade or business under the regulations. Taxpayers may rely on the safe harbor, which generally applies to tax years ending after 12/31/17, until the proposed Revenue Procedure is published in final form. (Notice 2019-7)
    • Calculating W-2 Wages for QBI Deduction Limitation. For certain taxpayers, the QBI deduction is limited to the greater of (1) 50% of the W-2 wages paid by the business or (2) 25% of the W-2 wages paid by the business plus 2.5% of the unadjusted basis of the business’s qualified property. In a recent Revenue Procedure, the IRS has provided three methods for calculating W-2 wages for purposes of this limitation. The first method (the unmodified box method) allows for a simplified calculation, while the second and third methods (the modified Box 1 method and the tracking wages method) provide greater accuracy. After computing W-2 wages under one of these methods, taxpayers must determine the extent to which the W-2 wages are properly allocable to QBI. The Revenue Procedure, which applies to tax years ending after 12/31/17, also may be used in computing the required reduction of the QBI deduction for certain specified agricultural and horticultural cooperative patrons. (Rev. Proc. 2019-11)
  • [1/22/19] Recent Developments Roundup
    • Penalty for Underpayment of Estimated Income Tax. The IRS has announced that it will waive the Section 6654 penalty for the underpayment of estimated income tax for certain individuals who would otherwise be required to make estimated payments on or before 1/15/19. The waiver is limited to individuals whose total withholding and estimated tax payments equal or exceed 85% of the tax shown on their 2018 returns. (The usual percentage threshold is 90%.) Taxpayers should complete Part I of Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts) to determine if the waiver applies. If it applies, taxpayers should check the waiver box (Part II, Box A) and include the statement “85% Waiver” with the return. (IRS Notice 2019-11 and News Release IR-2019-3)
    • 2019 Tax Filing Season to Begin January 28. The IRS has announced that despite the government shutdown, the 2019 tax filing season will begin on Monday, 1/28/19. The agency maintains the position that it has the authority to pay refunds despite a lapse in annual appropriations, and the Office of Management and Budget (OMB) agrees. Therefore, the IRS will be recalling a significant portion of its furloughed personnel to work. Additional information regarding the upcoming filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan. For most taxpayers, the deadline to file 2018 tax returns is Monday, 4/15/19. However, taxpayers living in Maine or Massachusetts have until 4/17/19 because of the Patriots’ Day and Emancipation Day holidays. (News Release IR-2019-1)
    • 2019 Standard Mileage Rates. Beginning 1/1/19, the standard mileage rates for cars, vans, pickups and panel trucks will be 58 cents per mile for business miles, 20 cents per mile for medical or moving purposes and 14 cents per mile for charitable purposes. However, the rates cannot be used to claim an itemized deduction for unreimbursed employee travel expenses or for moving expenses (except for certain members of the U.S. Armed Forces) because these deductions were suspended for 2018–2025 by the Tax Cuts and Jobs Act. The portion of the business standard mileage rate treated as depreciation is 24 cents per mile for 2015 and 2016, 25 cents per mile for 2017 and 2018, and 26 cents per mile for 2019. When computing the allowance under a Fixed and Variable Rate (FAVR) plan, the standard vehicle cost cannot exceed $50,400 for autos, trucks or vans. (IRS Notice 2019-2 and News Release IR-2018-251)
    • Safe Harbor for Certain SALT-related Business Payments. The IRS has released a safe harbor for certain payments made by C corporations and specified pass-through entities to charitable organizations in exchange for state or local tax credits. Such businesses may treat the payments as meeting the requirements of an ordinary and necessary business expense under IRC Sec. 162(a) to the extent of the credit received or expected to be received. A specified pass-through entity is a regarded entity other than a C corporation that (1) operates a trade or business; (2) makes a payment to a Section 170(c) organization; (3) is subject to a state or local tax that is imposed directly on the entity (other than a state or local income tax) and (4) receives or expects to receive a credit that offsets that tax. The safe harbor applies to amounts paid on or after 1/1/18. (Rev. Proc. 2019-12)
    • Partnership Audit Regulations. The IRS has finalized the centralized partnership audit regulations under IRC Secs. 6221 through 6241. The final regulations do not define “partnership-related items” in terms of the TEFRA rules, but instead clarify that items or amounts related to transactions of a partnership are items with respect to the partnership only if those items are required to be shown on the partnership return or are required to be maintained in its books and records. Items with respect to the partnership exclude items shown on the return of a person other than the partnership that result after taking into account the facts and circumstances specific to that person. The final regulations are effective for tax years beginning after 12/31/17 and ending after 8/12/18, and for early-electing partnerships with tax years beginning on or after 11/2/15. (TD 9844)
    • Estimated Tax Relief for Certain Tax-exempt Organizations. The IRS has waived the addition to tax under IRC Sec. 6655 for certain tax-exempt organizations. This relief applies to tax-exempt organizations that (1) provide qualified transportation fringe benefits to an employee for which estimated income tax payments (affected by tax reform changes to IRC Secs. 274 and 512) would otherwise be required to be made on or before 12/17/18; (2) were not required to file Form 990-T (Exempt Organization Business Income Tax Return) for the tax year preceding their first tax year ending after 12/31/17 and (3) timely file Form 990-T and pay the amount reported for the relief year. To claim the waiver, organizations must write “Notice 2018-100” on the top of their Form 990-T. (IRS Notice 2018-100)
    • Qualified Parking Expenses. In a Notice, the IRS has provided interim guidance on determining the amount of qualified parking expenses that is nondeductible under IRC Sec. 274(a)(4). In addition, the Notice addresses how tax-exempt organizations increase their unrelated business taxable income (UBTI) under IRC Sec. 512(a)(7) attributable to nondeductible parking expenses. If a taxpayer pays a third party for employee parking spots, the total annual cost is generally nondeductible. However, the total monthly amount in excess of the Section 132(f)(2) exclusion ($260 for 2018) that is treated as compensation is deductible. If a taxpayer owns or leases a parking facility, the disallowed amount may be calculated using any reasonable method (including the method described in the Notice). Employers have until 3/31/19 to change their parking arrangements to reduce or eliminate the number of parking spots they reserve for employees. (IRS Notice 2018-99 and News Release IR-2018-247)
    • Employee Election to Defer Income from Qualified Equity Grants. In a Notice and News Release, the IRS provides guidance on the new election allowing employees to defer income from qualifying equity grants under IRC Sec. 83(i), added by the Tax Cuts and Jobs Act. Among the many eligibility and qualification requirements, the corporation must have a written plan under which not less than 80% of all employees who provide services to the corporation in the U.S. are granted stock options or restricted stock units (RSUs) with the same rights and privileges to receive qualified stock. The Notice provides that the satisfaction of this 80% requirement is determined on a calendar-year basis. The Notice also requires that employers must make an estimate of the value of the stock treated as wages paid and make timely income tax withholding deposits on that estimate, and employees must agree that the deferral stock be deposited into escrow to ensure the withholding requirements are met. (IRS Notice 2018-97 and News Release IR-2018-246)
    • Credit for Plug-in Electric Vehicles Phased out for Tesla Models. Under IRC Sec. 30D(e)(2), the credit for new qualified plug-in electric drive motor vehicles is phased out over a period of four calendar quarters once the total number of qualifying vehicles sold by a manufacturer after 2009 reaches 200,000. In a Notice, the IRS announced that Tesla, Inc. reached this limit during the calendar quarter ending 9/30/18. Therefore, qualifying Tesla vehicles are eligible for the full $7,500 credit if they are purchased before 1/1/19. A reduced credit of $3,750 applies to vehicles purchased from 1/1/19 through 6/30/19. On 7/1/19, the credit will be reduced to $1,875 for the remainder of the year. After 12/31/19, no credit will be available. (IRS Notice 2018-96 and News Release IR-2018-252)
    • Employers and Providers Allowed Extension for Providing Health Coverage Forms to Individuals. The IRS has announced an automatic extension of the due date for providing 2018 health coverage information reporting forms to individuals. Insurers, self-insuring employers, certain other coverage providers and applicable large employers will have until 3/4/19, rather than 1/31/19, to issue 2018 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage) to individuals. The good-faith transition relief provided from penalties under IRC Secs. 6721 and 6722 is also extended to the 2018 information reporting requirements. The due date for employers and providers to file 2018 Form 1094-B, 1095-B, 1094-C or 1095-C with the IRS has not been extended. The due date for these forms remains 2/28/19, or 4/1/19 if filing electronically. (IRS Notice 2018-94)
    • Section 451(b) Accounting Method Change—Automatic Consent Procedures. Under IRC Sec. 451(b), the all events test for recognizing income is generally met no later than when it’s recognized on the taxpayer’s applicable financial statement (AFS). In a Revenue Procedure, the IRS has provided new automatic consent procedures for taxpayers changing their accounting method to comply with IRC Sec. 451(b). However, small business taxpayers (those with average annual gross receipts for the three prior tax years of $25 million or less) and taxpayers whose Section 481(a) adjustment resulting from the change is zero may use streamlined procedures, which waive the requirement to file Form 3115. Such taxpayers can still file a Form 3115 if they want to (1) retain a clear record of the change, (2) make permissible concurrent changes on the same form or (3) have audit protection. The Revenue Procedure is effective on 11/29/18 for a tax year beginning after 12/31/17. (Rev. Proc. 2018-60)
    • Section 163(j) Safe Harbor for Infrastructure Trades or Businesses. Real property trades or businesses can elect out of the Section 163(j) interest limitation rules if they use the Alternative Depreciation System (ADS) to depreciate nonresidential real property, residential rental property and qualified improvement property. In a Revenue Procedure, the IRS provides a safe harbor that treats certain infrastructure trades or businesses as real property trades or businesses under IRC Sec. 163(j)(7)(B). The trade or business must (1) be conducted by a party contractually obligated to fulfill the terms of a specified infrastructure agreement (as defined in the Revenue Procedure); (2) be conducted in connection with fulfilling the terms of the specified infrastructure agreement and (3) not otherwise be treated as a real property trade or business under IRC Sec. 163(j)(7)(B) or 469(c)(7)(C). The Revenue Procedure is effective on 12/10/18 and may be applied to tax years beginning after 12/31/17. (Rev. Proc. 2018-59)
    • Proposed Regulations on Business Interest Expense Limit. The IRS has issued proposed regulations (REG-106089-18) under IRC Sec. 163(j), which limits the deduction for net business interest for certain taxpayers to 30% of adjusted taxable income plus any floor plan financing interest paid by vehicle dealers. Among other things, the proposed regulations provide (1) general rules on computing the limit; (2) ordering and other rules on the relationship between the limit and other Code provisions; (3) rules affecting C corporations, consolidated group members and tax-exempt corporations; (4) special rules for partnerships and S corporations; (5) ways for excepted trades or businesses to elect out of IRC Sec. 163(j) and (6) rules to allocate expense and income between nonexcepted and excepted trades or businesses. Taxpayers may rely on the proposed regulations until final regulations are published in the Federal Register. [Prop. Regs. 1.163(j)-1 through -11]
    • Income Tax Withholding for 2019. In a Notice, the IRS provides interim guidance for the 2019 calendar year on income tax withholding from wages and retirement and annuity distributions. Among other things, the Notice (1) announces that the 2019 Form W-4 will be similar to the 2018 form; (2) continues until 4/30/19 the temporary suspension of the Section 3402(f)(2)(B) requirement to supply new Forms W-4 within 10 days for changes resulting solely from the Tax Cuts and Jobs Act; (3) allows taxpayers to reduce withholding on account of the qualified business income deduction and (4) announces that the IRS intends to update regulations to allow taxpayers to use the online withholding calculator or Publication 505 instead of Form W-4 worksheets (IRS Notice 2018-92). Note: The 2019 version of Form W-4 is now available at www.irs.gov. While the form is similar to the 2018 version, the Deductions, Adjustments, and Additional Income Worksheet is updated to reflect the increase in the annual withholding allowance from $4,150 to $4,200 in 2019. Also, the Worksheet has been updated for the increase in the standard deduction for 2019 from (1) $24,000 to $24,400 for joint filers and surviving spouses; (2) $18,000 to $18,350 for heads of household and (3) $12,000 to $12,200 for single filers and married individuals filing separately.
    • UNICAP Simplified Method Cost Allocation Regulations. The IRS has issued final regulations on several aspects of the Section 263A UNICAP rules. The final regulations (1) provide rules for the treatment of negative adjustments related to certain costs required to be capitalized to property produced or acquired for resale; (2) present a new simplified method of accounting for determining the additional costs allocable to property produced or acquired for resale and (3) redefine how certain types of costs are categorized for purposes of the simplified methods. In addition, the IRS has released the procedures by which a taxpayer may obtain automatic consent to change to certain accounting methods described in the final regulations. The final rules apply to tax years beginning on or after 11/20/18. For any tax year that both begins before and ends after 11/20/18, the IRS will not challenge return positions consistent with the final regulations. (TD 9843 and Rev. Proc. 2018-56)