The IRS has launched the Tax Withholding Estimator, a new online tool that replaces the IRS Withholding Calculator. According to the IRS, the “Estimator” offers employees, as well as retirees and self-employed persons, a more user-friendly tool for tailoring the amount of income tax they have withheld from wages and pension payments. Features include tips to help users determine if they qualify for various tax credits and deductions; a mobile-friendly design; the automatic calculation of the taxable portion of Social Security benefits; and a self-employment tax calculation for those with self-employment income in addition to wages or pensions. Explore the tool: http://bit.ly/2KAhiRJ
The IRS has done an “about-face” and will now enforce a stock-based compensation (SBC) rule. The Large Business and International (LB&I) division have formally withdrawn its 2018 directive involving SBC in cost-sharing arrangements. It has provided new instructions for examiners on transfer pricing issue selection related to these arrangements. The directive’s withdrawal was based on the recent 9th Circuit U.S. Court of Appeals decision in “Altera.” The court found that the IRS hadn’t exceeded its authority in that case. Last year, after an earlier court case, the IRS told examiners to stop opening new examinations for related issues.