Altair Alert: Tax Reform – Key 2017 Rulings
On September 21, 2018, the IRS released a key ruling regarding tax reform. Under Notice 2018-75, 2018-41 IRB 1, 2018 reimbursements or employer payments for employee moves occurring in 2017 remain excludable from the incomes of the employees (provided they were excludable prior to tax reform). You may recall a communication earlier this year from Altair Global with regard to the TCJA, including a recommendation to accrue these expenses and treat them as excludable. We are now seeing this recommendation validated through the recent IRS ruling.
To take advantage of the cost savings associated with this IRS ruling, Altair Global can reclassify as excludable any eligible expenses paid or reimbursed in 2018 where services were incurred in 2017 prior to year-end, based on your company’s input and approval. You can expect the following actions will be taken by Altair Global:
- For clients who have already had their year-end discussion, Altair Global’s Financial Services team will be reaching out to the Client Services representative and the client to schedule an additional meeting to discuss how they would like to proceed in light of the latest IRS ruling.
- For those clients with pending year-end conference calls, this topic will be added to the agenda to be discussed.
For more information on the ruling, please see the Worldwide ERC® article released on Monday, September 24, 2018 HERE. Please reach out to your Altair Global Client Services representative with any questions or concerns.
Altair Global (‘Altair’) has provided this information as a service and convenience for your information only. It is not intended to replace your own legal or financial guidance and/or assistance and you are encouraged to seek the advice of your own tax and legal advisor. Further, the information contained herein is to our knowledge accurate to the extent of the data available to Altair as of the date identified. Altair does not assume responsibility for the accuracy of the contents hereof and is under no obligation to update the material contained herein.