Dear Clients and Friends,
We have become so accustomed to an ever-changing tax code that it may seem strange to take up a midyear tax review under rules that have not changed significantly for 2014. Those in Washington seem to have put tax simplification and revision on hold for the time being. There is still talk — and perhaps some behind the scenes work — on tax reform, but most admit nothing is likely to happen until 2015 or beyond.
There have been a few recent tax events that will affect individuals and businesses. The IRS issued “repair regulations,” clarifying for the business community when costs related to fixed assets must be capitalized and when they can be currently expensed. A Tax Court case put a once-a-year limit on the number of nontaxable IRA rollovers individuals can do. And the IRS has been focusing its attention on tax-related identity theft and refund scams.