Key Tax Developments, Quarter 1

The first quarter of 2017 has come to an end, and we’ve put together the tax changes you need to know.

• Small businesses can now use up to $250,000 of their research credit against their payroll tax liability, instead of their income tax liability, which may be helpful for startups with little or no income tax liability.
• The Fast Track Settlement (FTS) program, designed to help small businesses/self-employed taxpayers reach an agreement with the IRS on tax disputes more quickly, has been made permanent.
• 2017 luxury auto depreciation dollar limits and lease income add-backs were released for 2017. All dollar limits will remain the same as 2016, other than a $100 increase for third year light trucks or vans (includes minivans and SUVs).
• Small businesses can wait to send an HRA notice to employees until 90 days after they receive further guidance from the IRS.
• The IRS provided a revised list of boycott countries which includes Iraq, Kuwait, Lebanon, Libya, Saudi Arabia, Syria, United Arab Emirates, and Yemen.

Call Burkett Burkett & Burkett, Certified Public Accountants, P.A. with any questions you may have or for assistance navigating these changes. Read the full article here.