BCo Community News

New Partnership Audit Rules

Beginning in 2018, The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) was repealed and replaced with a new partnership audit regime in which taxes and penalties due as a result of a partnership audit are assessed at the partnership level, rather than individually at the partner level. Some small partnerships (100 or fewer eligible partners) may have the option to elect out.  The IRS has issued regulations to assist taxpayers in implementing these new rules.

 

  • Many partnerships and limited liability companies will find it necessary or desirable to amend their partnership or operating agreement in response to the new rules. The familiar role of “tax matters partner” is replaced by a new, more comprehensive role of “partnership representative,” who is not required to be a partner.  The partnership […]
By |February 17th, 2019|Categories: BCo Community News|Comments Off on New Partnership Audit Rules

Update on IRS functions during the government shutdown

The IRS has just released an update on what they will and will not be doing during the government shutdown:

The IRS will continue to:

  • Process electronic and paper-filed returns (including amended returns)
  • Issue refunds
  • Respond to taxpayer questions
  • Send out automated notices
  • Implement the Tax Cuts and Jobs Act

What the IRS will not do:

  • Process transcript requests (If a POA is on file they will through e-services)
  • Process new POA requests
  • Conduct any audit functions (unless the SOL could expire)

For the full notice click here.

By |January 21st, 2019|Categories: BCo Community News|Comments Off on Update on IRS functions during the government shutdown

Don’t forget to let your CPA know if you have a foreign bank account

Did you know that if you have a foreign bank account, or even just signature authority over a foreign account that isn’t in your name, that your CPA should know about it?  While there is no specific tax on having a foreign bank account, the penalty for failure to disclose can range from $10,000 and up to 50% of the balance of the account if the failure is found to be willful.  The IRS is working down their lists.  Years ago they were going after billionaires with secret Swiss bank accounts, but more recently they are enforcing penalties against much smaller account holders.  Two weeks ago, in a more shocking court case, a taxpayer was ordered to pay $697,229 related to an account inherited from her […]

By |January 21st, 2019|Categories: BCo Community News|Comments Off on Don’t forget to let your CPA know if you have a foreign bank account

New Year, New Leadership!

New year, new leadership! We’re thrilled to announce David Crouch as our new firm managing partner and Jennifer Ruth as our San Francisco office managing partner. With David and Jennifer joining Jeff Belingheri , managing partner of our Novato office, at the helm, we look forward to a fruitful and prosperous 2019 for BCo and our clients!   

Click for link to Pleasanton Patch Article

By |January 21st, 2019|Categories: BCo Community News|Comments Off on New Year, New Leadership!

With new regulations IRS all but sinks the ship on state workarounds for the $10,000 SALT limit

On August 24th 2018 the IRS issued proposed regulations regarding recent state’s creation of state tax credit programs in exchange for charitable contributions. A number of states, including California, have proposed creating charitable funds where taxpayers would receive a state tax credit for contributions to the fund. The IRS has taken the position that these proposed transactions are quid pro quo and that a full charitable deduction is not allowed. The tax credits constitute return benefits and therefore reduce the amount of the charitable contribution. There are a few exceptions, one for state tax deductions along with a De Minimus exception for credits that do not exceed 15% of the taxpayer’s payment. A taxpayer may also decline the tax credit to receive the full charitable contribution

If you would like to […]

By |August 26th, 2018|Categories: BCo Community News, Individual Tax|Comments Off on With new regulations IRS all but sinks the ship on state workarounds for the $10,000 SALT limit