The IRS has issued proposed regulations that would make it easier to deduct “local lodging” costs — in other words, staying overnight when not away from home. The new rules provide a safe harbor for certain local lodging at a business meeting, conference, or other activity or function. Other local lodging expenses may be deductible as business expenses depending on the facts and circumstances. Although these rules will officially take effect when final regulations are published, the IRS says taxpayers can rely on them now, including on returns that have already been filed but for which the statute of limitations for claiming a refund has not expired (generally returns for years 2009 or later).

Resource: Proposed regulation in the Federal Register (PDF)

No, we aren’t talking about floral arrangements. The federal tax deposit system, or FTD,  is used to collect various taxes including employment taxes and corporate income tax. (It isn’t used by individual taxpayers filing their income tax returns, so they aren’t affected by this announcement.) The system has long accepted and encouraged electronic payments, and fewer than 10% of the payments are still made with old-fashioned paper coupons. Apart from being less efficient, the paper coupons account for a disproportionately large number of errors and penalties. Beginning next year paper coupons will be eliminated and all these deposits will have to be made electronically.

Seeking to inform tanning salons of their obligations relating to the 10% excise tax that takes effect July 1, the IRS has circulated a list of nine tips concerning the law. (more…)