After tax reform, many corporations will pay blended tax rate
Last year’s tax reform legislation replaced the graduated corporate tax structure with a flat 21 percent corporate tax rate. This new maximum tax rate for corporations is effective for tax years beginning after Dec. 31, 2017.
A corporation with a fiscal year that includes Jan. 1, 2018, will pay federal income tax using what is called a blended tax rate. They will not use the flat 21 percent tax rate for their entire fiscal year. To calculate their blended tax rate, these corporations will:
The blended rate applies to all fiscal year corporations whose fiscal year includes Jan. 1, 2018. Fiscal year corporations that have already filed their federal income tax returns that do not reflect the blended rate may want to consider filing an amended return.
This change will affect many tax forms and instructions that corporations use. For a complete list, see the 2017 Fiscal Tax Year Filers Must Use Blended Corporate Tax Rates page on IRS.gov.
More information: Notice 2018-38
Enterprise Resource Planning (ERP) systems help companies streamline their accounting needs through integration of data. It provides you with a better view of all areas of the business, and this enables ...
Evolving technology has had a number of different implications to all professions the world over, and accounting is one of them. With the rise of new technologies such as deep learning, the foundational ...
The National Society of Accountants (NSA) is offering a Live Enrolled Agent (EA) Exam Review Course in Charlotte, North Carolina, August 19-21, 2019.
The August EA Exam Review Course covers material ...
1330 Braddock Place, Suite 540
Alexandria, VA 22314
For Advertisers and Sponsors
Find A Professional
NSA Scholarship Foundation
Affiliated State Organizations
Accreditation Council for Accountancy and Taxation (ACAT)