The Latest in Tax News: December 2019 Edition

Textbook Tax presents its monthly tax news update. A quick read discussing various tax news, tax stories, and tax events trending in the world of tax during the month. The following tax topics cover the month of December 2019. The tax topics presented represent my favorites in tax news and tax-related events. Please comment any tax news stories you found interesting for the month of December. Additionally, please email me or connect with me on social media for the monthly tax news update sent straight to you!

Tax News for December 2019

Tax Topic: US Congressional negotiators reach year-end tax deal

Tax Summary:

US House and Senate reached a tax deal on December 17, 2019. The tax deal will be incorporated into the 2020 spending bill.
The tax deal includes: "extenders," ACA tax repeals, disaster relief, and more.

The tax deal extends expiring provisions, including biodiesel credits, short-line railroad credits, New Markets Credit,Work Opportunities Credit, and more.
The tax deal repeals three ACA taxes, including medical device excise tax, Cadillac tax, and health insurane provider fee.
The tax plan sets short-term tax relief provisions for victims in federally-declared natural disasters.

Tax Topic: Proposal for a global minimum tax

Tax Summary:

OECD/G20, which includes 135 member countries, is considering a global minimum corporate income tax to target multinationals.
The proposal is part of Pillar Two, or the GloBE Proposal, which focuses on taxing the digital economy.
The GloBE proposal introduces two new taxes on multinational profits:

a global minimum tax on corporate profits
a base erosion tax

Tax Topic: The IRS enhances its Free File Program

Tax Summary:

The IRS added to its Free File Program, which is an agreement with tax preparation companies focused on allowing qualified taxpayers to file their tax returns for free.
The government program provides free tax-prep software to U.S. taxpayers with incomes below $69,000.
The changes to the Free File Program include: baring the tax-prep firms from manipulating free-tax prep search algorithms on Google as well as initiating an IRS digital filing system.

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Cryptocurrency Taxation: How does the U.S. tax cryptocurrency? - Textbook Tax

The cryptocurrency market continues to rise in popularity in the U.S. and throughout the world. The decentralized finance ("Defi") sector has seen massive growth. Additionally, ease of access has increased as new and established companies offer crypto services and exchanges. As more and more individuals and institutions adopt cryptocurrency, it becomes more important for people to understand the tax laws and regulations governing the cryptocurrency industry. It is important to note that each country views and regulates virtual currency differently. The scope of this article covers the crypto tax laws in the United States. T he IRS defines virtual currencies as digital representations of value that function as mediums of exchange, units of account, and/or stores of value. Further, t he U.S. views crypto as property subject to capital gains and losses for US federal tax purposes. Based on its designation as property, i n general, there are four taxable events when d...

Gambling Winnings & Losses: How to report gambling income and losses

People love to gamble. During the past NFL Super Bowl (2019), gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry. Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable?...

20 Tips & Tricks for Studying for the CPA Exam

For those on the way to becoming a certified public accountant, you now know it is a long and difficult journey. For those just beginning, good luck! The most difficult and time-consuming task is passing the CPA Exam. CPA candidates must spend hundreds of hours preparing for all four sections of the CPA. Each CPA section represents an entirely different topic, creating a daunting task for anyone looking to start studying for the CPA exam. I passed all four sections of the CPA with an average score of 91. Luckily, I did not have to retake any of the exams, which is a common occurrence as the average passing rate is around 40-50% per exam. Having personal experience dealing with the CPA exam process, I want to share valuable tips for conquering the CPA exam. I want you to feel confident and comfortable during the CPA exam process, and so, I believe the following tips will help you during the CPA exam process. Lets begin! Related Posts - Preparing for the CPA Exam: How to St...

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