The straight line

It’s that time of year when we reflect back on what happened over the past year. In many ways, 2019 looked very similar to 2018. That’s not necessarily a good thing. Most of you couldn’t be done with 2018 fast enough. Once again, we saw a very wet spring.  We thought the spring of 2018...

I believe the general consensus is that everyone is glad to have 2019 behind us!  What does 2020 hold for the industry and our clients?  As always, our perspective comes from being involved in your audits, board and annual meetings, planning sessions, visiting with management and being immersed in agriculture.  Here are our thoughts: Capital...

The IRS is conducting compliance checks into whether the credit union taxpayers are adhering precisely to information reporting requirements regarding unrelated business income. Very specifically, they are looking at income from the sale of insurance products, financial service products and ATM transaction fees.  Compliance checks are reviews to determine whether a taxpayer is strictly adhering...

The Tax Court recently issued a long-awaited ruling in the GROWMARK section 199 case.   As in the AGP case (issued in October), the Tax Court ruled that section 199(d)(3) does not require separate domestic production activities deduction (DPAD) computations for patronage and nonpatronage activities. However, once DPAD is computed it must be allocated between patronage...

Final regulations implementing new Code section 163(j) could be released by the end of the year.  The Treasury and IRS are working on additional section 163(j) regulations, but they may not be released at the same time.  Regulations are usually effective for tax years ending after the date the final regulations are published.  With the...

Under some circumstances in which the tax years overlap the calendar year, there seems to be some confusion about which “Tax Period” to use. When making a corporate tax payment to the IRS using their Electronic Funds Transfer Payment System, either by phone or on the IRS’ website,   the correct year is always the tax...