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Taxpayers may revoke or make late bonus depreciation election – for years containing 9/28/17

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August 8, 2019

The IRS last week issued a taxpayer friendly revenue procedure (Rev. Proc. 2019-33).  It will permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017.

This relief is being granted in response to comments received about the bonus depreciation proposed regulations that were issued in August of 2018.  With the late issuance of these proposed regulations many taxpayers had already filed their federal returns for the tax year and didn’t have a chance to analyze how the proposed regulations would have effected their returns and make a timely election.

Taxpayers may make the late elections or revocations of elections provided in the revenue procedure by filing amended returns or, for taxpayers that are partnerships subject to the centralized partnership audit regime, by filing an administrative adjustment request, for the 2016 tax year or the 2017 tax year before the taxpayer files its federal tax return for the first tax year succeeding the 2016 tax year or the 2017 tax year.

The alternative would be for taxpayers to file a Form 3115, Application for Change in Accounting Method, with the taxpayer’s timely filed federal tax return for the first, second, or third tax year succeeding the 2016 tax year or the 2017 tax year. Late elections or revocations under this revenue procedure will be treated as automatic changes in method of accounting with a Sec. 481(a) adjustment only during this limited period of time.

If you have additional questions contact the tax professionals at Ketel Thorstenson, LLP.


March 2, 20160

The Internal Revenue Service (IRS) issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees.

The IRS has learned this scheme – part of the surge in phishing emails seen this year – already has claimed several victims as payroll and human resources offices mistakenly email payroll data including Forms W-2 that contain Social Security numbers and other personally identifiable information to cybercriminals posing as company executives.

“This is a new twist on an old scheme using the cover of the tax season and W-2 filings to try tricking people into sharing personal data. Now the criminals are focusing their schemes on company payroll departments,” said IRS Commissioner John Koskinen. “If your CEO appears to be emailing you for a list of company employees, check it out before you respond. Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

IRS Criminal Investigation already is reviewing several cases in which people have been tricked into sharing SSNs with what turned out to be cybercriminals. Criminals using personal information stolen elsewhere seek to monetize data, including by filing fraudulent tax returns for refunds.

The IRS recently renewed a wider consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season and other reports of scams targeting others in a wider tax community.

The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

The IRS, state tax agencies and tax industry are engaged in a public awareness campaign – Taxes. Security. Together. – to encourage everyone to do more to protect personal, financial and tax data. See or talk with your tax professional at Ketel Thorstenson for additional steps you can take to protect yourself.