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IRS CCA: Correction Made to TCO Training Materials Example Regarding Deduction Made for Pre-Paid SALT Taxes (IRC §164)

Feb. 14, 2020, 7:12 PM

The answer regarding Tax Compliance Officer (TCO) training materials regarding deductibility of prepaid 2018 state income taxes needs to be corrected, the Chief Counsel’s Office informally advised. Under tax code Section 164(b)(6)(B), taxpayers may only deduct up to $10,000 in state and local taxes in taxable years beginning after December 31, 2017, and before January 1, 2026, and requires that a taxpayer treat state and local taxes pre-paid in tax years before January 1, 2018, for a tax imposed for a taxable year after December 31, 2017, as paid on the last day of the taxable year for...

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