The IRS has issued clarification regarding the federal tax status of special payments made by 21 states in 2022. Taxpayers in many of these states will not be required to report these payments on their 2022 tax returns. Disaster Relief & General Welfare Payments Payments made for the promotion of general welfare or as disaster […]
Tax Status of State Special Payments Clarified Read More »
Eligible workers from low and moderate income groups can still make qualifying retirement contributions and get the Saver’s Credit on their 2022 tax return. Taxpayers have until the due date for filing their 2022 return, April 18, 2023, to set up a new IRA or add money to an existing IRA for 2022. The Retirement
Employees Urged to Use Saver’s Credit In 2023 Read More »
The Treasury Department and the IRS have provided guidance announcing that they intend to issue proposed regulations to address the application of the new one-percent corporate stock repurchase excise added by the Inflation Reduction Act of 2022. Excise Tax on Stock Repurchases Beginning in 2023, a publicly traded U.S. corporation is subject to a one-percent
Treasury & IRS Issue Guidance on Corporate Stock Repurchase Excise Tax Read More »
With Republicans taking over House of Representatives leadership comes new rules that could have implications on tax policy. Adopted on January 9, 2023 almost exclusively along party lines, are two key provisions that could impact tax policy in at least the next two years. First is the need for a supermajority of lawmakers to vote
House Rules Could Impact Tax Policy in 2023 Read More »
The IRS has issued the luxury car depreciation limits for business vehicles placed in service in 2023 and the lease inclusion amounts for business vehicles first leased in 2023. Depreciation Caps for Luxury Passenger Cars The luxury car depreciation caps for a passenger car placed in service in 2023 limit annual depreciation deductions to: $12,200
Luxury Auto Depreciation Caps and Lease Inclusion Amounts Issued for 2023 Read More »
After the IRS made a rare midyear increase to the standard mileage rate last year, we weren’t sure if we’d see another one for 2023. But good news, the rate to calculate the deductible costs of operating a vehicle for business purposes increased by 3 cents to 65.5 cents per mile, effective January 1, 2023.
Standard Mileage Rate Increase for 2023 Read More »
We are all ready to move past COVID, including the IRS. “It’s time, as we leave some of those pandemic issues behind us, to focus more on our core mission in appeals, which is the quality resolution of taxpayer cases,” Independent Office of Appeals Chief Andy Keyso said in a recent interview with Federal Tax Daily. “I think
IRS Focusing on Technology & Staffing in 2023 Read More »
In our last blog post, we talked about changes impacting those that are already retired, or close to taking the plunge. In this post, we will talk about additional changes that will impact younger people who are saving for retirement in the future. Financial planners typically say that Americans need at least $1.25 million to
Retirement Saving Changes in 2022 Funding Bill Read More »
In late 2022, Congress approved a $1.7 trillion spending bill which included some adjustments that will impact those saving for retirement. Here’s what you need to know. Required Minimum Distribution (RMD) Age Increases to 73 RMDs are withdrawals that the IRS requires seniors to take from retirement accounts annually once they reach a certain age.
Changes Impacting Those Facing Retirement in 2023 Read More »
Taxpayers who earn in excess of $600 from selling goods and/or providing services could receive a Form 1099-K this year. Before 2022, Form 1099-K was issued for third party payment network transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. However, now, a
Many Gig Economy Workers Will Receive a Form 1099-K This Year Read More »
The IRS-Criminal Investigation (IRS-CI) has released its 2022 Annual Report which is full of statistics, important partnerships and significant criminal enforcement actions. Highlights include 2,550 criminal investigations, more than $31 billion recovered, and a 90% conviction rate. IRS-CI expanded partnerships with foreign counterparts in 2022 to help combat tax and financial crimes on a
Criminal Investigation Report Released by IRS Read More »
Curious how the Inflation Reduction Act’s tax incentives will support the building of an equitable clean energy economy? In a recently-issued fact sheet, the Treasury Department highlighted four key areas where the tax policy will drive clean energy: Providing targeted incentives to drive investment and create opportunity in communities across the country Encouraging clean energy project
Path to Clean Energy Economy Outlined by Treasury Read More »