IRS: USMCA Replaces NAFTA in U.S. Tax Treaties

Once it enters into force, the USMCA will replace NAFTA.  Since many U.S. tax treaties make reference to NAFTA, it was unknown if this would cause any issues with these provisions, and despite a recent IRS clarification, it is probably still a bit unknown. References to NAFTA appear in treaties even outside the U.S., Mexico, […]

New NOL Rules and the Transition Tax

Between the Tax Cuts and Jobs Act and the coronavirus, there have been many unique tax situations lately.  It was only a matter of time before these started to interact and cause problems.  As part of the coronavirus provisions under the CARES Act, the IRS allowed for certain NOLs to be carried back.  This carryback […]

Coronavirus: New International Tax Considerations

Many U.S. international tax laws are determined based on time spent in or out of the U.S., as well as what type of activities and the amount of activities performed in the U.S.  With the coronavirus greatly affecting the ability to travel, taxpayers could have been forced into unfavorable situations through no fault or desire […]

California Tax Updates Related to Coronavirus

The Franchise Tax Board has updated its Coronavirus FAQ page with the following information: The Recovery Rebate Payments from the IRS are not taxable in California The additional $600/week of unemployment benefits is not taxable in California The modifications to the net operating loss rules for the IRS do not apply to California California will […]

California Extends Deadline on Several Tax Matters

In addition to previously extending the tax return deadline, California has announced several other key tax matters that will have extended time due to the coronavirus.   Claim for Refund Generally, a taxpayer must file a claim for refund within the later of four years from the date the return was filed or one year […]

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

The largest economic bailout in U.S. history contains several tax provisions.  The recovery rebates are well known, but here are some of the other important tax items: Recovery Rebates – Click here for chart of Recovery Rebates The 10% early withdrawal penalty for retirement distributions is waived for people diagnosed with coronavirus, who have a […]

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