Taxpayers can file their tax return electronically for free through IRS Free File. The program is available on IRS.gov through Oct. 15. Other electronic filing options include using a free tax return preparation site, commercial software or an authorized e-file provider.

2. Special per diem rates in effect as of Oct. 1, 2019

The IRS recently published a Notice to inform taxpayers which per diem rates to use as of Oct. 1, 2019. Per diem is used to substantiate the amount of expenses used for lodging, meals and incidental costs when traveling away from home. IRS Notice 2019-55 discusses:

Special transportation industry rate,
Rate for the incidental expenses only deduction, and
Rates and list of high-cost localities for purposes of the high-low substantiation method.

Use of a per diem substantiation method is not mandatory. A taxpayer may use actual allowable expenses if they maintain adequate records or other sufficient evidence for proper substantiation.

3. IRS announces more time for drought-stricken farmers to replace livestock

Farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the IRS. To qualify, the sales must be solely due to drought, flooding or other severe weather causing the region to be designated as eligible for federal assistance.

For more information, see the Sept. 30 IRS news release: IRS relief provides drought-stricken farmers, ranchers more time to replace livestock.

4. Interests in rental real estate can qualify as a business for 199A qualified business income deduction

The IRS recently issued Revenue Procedure 2019-38 that has a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction under section 199A of the Internal Revenue Code.

For more information, see the Sept. 24, 2019, IRS news release: IRS finalizes safe harbor to allow rental real estate to qualify as a business for qualified business income deduction.

5. Tax credit for employers providing paid family and medical leave

October is National Work and Family Month. The IRS reminds employers about the Credit for Paid Family and Medical Leave, a business credit based on a percentage of wages paid to qualifying employees while they’re on family and medical leave.

To claim the credit, eligible employers must have a written policy in place with certain requirements, including:

At least two weeks of paid leave to full-time employees (prorated for part-time employees), and
The paid leave must be at least 50 percent of the wages normally paid to the employee.

For more information, see IRS Publication 5327, New tax credit for employers who provide paid family and medical leave.

6. What businesses should know about General Business Credits

The general business tax credit is not a single separate credit but a combination of specific tax credits that promote certain business activities, such as research, oil recovery, reforestation or starting a pension plan. Detailed information on how certain business activities qualify for General Business Credits can be found at IRS.gov/Form3800.

For more information about this and other Tax Cuts and Jobs Act provisions, visit IRS.gov/taxreform.

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