The One Big Beautiful Bill Act (“OBBBA”) provided three new rules with respect to reporting and claiming itemized deductions resulting from charitable donation contributions. 1. The New 2/37ths Limitation Rule: Applying to ALL Itemized Deductions OBBA made changes to IRC section 68 by imposing a 2/37th limitation on non-miscellaneous itemized deductions. The OBBBA repealed the so-called... Read More

The Sixth Circuit reversed the Tax Court’s dismissal of a petition that was filed more than 90 days after the IRS mailed the notice of deficiency, joined the Second and Third Circuits in holding that the deadline in section 6213(a) is not jurisdictional and remanded the case to the Tax Court to determine whether equitable tolling should apply. NAYSHA... Read More

The IRS has provided taxpayers with a fact sheet (FS-2025-7) that answers frequently asked questions (FAQs) on the limitation on credits and refunds for employee retention credits claimed by taxpayers for the third and fourth quarters of 2021 and filed after January 31, 2024. The FAQs explain that a provision in the recently enacted One... Read More

When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability, which is called joint and several liability. The IRS provides innocent spouses equitable relief if appropriate. Joint and several liability applies not only to the tax liability you show on the return but... Read More

California has passed legislation to allow owners of pass though entities such as partnerships and S-Corporations to bypass the state and local tax (SALT) cap of $10,000 for individuals. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, California law allows an entity taxed as a partnership or an... Read More

In Revenue Ruling 2019-11, posted on IRS.gov, the IRS provided four examples illustrating how the long-standing tax benefit rule interacts with the new SALT limit to determine the portion of any state or local tax refund that must be included on the taxpayer’s federal income tax return. The IRS new state and local tax deduction limit... Read More

Section 170(a) provides, subject to certain limitations, a deduction for any charitable contribution, as defined in § 170(c), payment of which is made within the taxable year. A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Moreover, it is voluntary and is made without getting, or expecting... Read More

The Internal Revenue Service (IRS) makes every effort to examine tax returns as soon as possible after they are filed. Moreover, an IRS audit can take time to complete, but the IRS cannot extend the audit indefinitely. To ensure timely tax examinations, Congress has set deadlines for assessing taxes and making refunds or credit of... Read More

What is the Employee Retention Credit? The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages that Eligible Employers pay their employees. This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The maximum amount of qualified wages taken into... Read More

The Tax Branch (TB) of the Employment Development Department (EDD) administers the collection, accounting, and auditing functions of California’s payroll tax program. If a business owes an EDD Tax Liability, the EDD statute of limitations for collection is important to analyze. Moreover, the program consists of Unemployment Insurance and Employment Training Tax, which are employer... Read More