The Internal Revenue Service issued guidance on new tax law changes that allow small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting.
The Tax Cuts and Jobs Act permanently lowered the federal corporate income tax rates, which decreased from 35 percent to 21 percent. According to the Tax Foundation research and an article by Erica York, on which they analyze the effects of such changes, they conclude that it is beneficial to the US economy.
The Trump administration has imposed and threatened several rounds of tariffs in 2018, and other countries have responded to these measures in kind. According to the Tax Foundation Taxes and Growth Model and an article by Erica York and Kyle Pomerleau, on which they analyze the effects of enacted, threatened, and retaliatory tariffs, it will have a big impact on the United States economy. Tariffs damage economic well-being, and lead to a net loss in production and jobs, and lower levels of income.
The Tax Cuts and Jobs Act of 2017 made multiple changes to the individual income tax, including changes to itemized deductions and the alternative minimum tax, an increased standard deduction and child tax credit, and lower marginal tax rates across brackets.
IRS Releases Qualified Business Income Deduction (QBID) Proposed Regulations. On August 8, the IRS released proposed regulations on the Code Sec. 199A qualified business income deduction and they are generally favorable to taxpayers.
Congress Moving for Licensing Tax Preparers. Congress is moving toward giving the IRS the authority to license tax preparers, Senator Rob Portman (R-OH) is promoting it with a new bill