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IRS Updates December 27
IRS Updates End-December by Paul Davis $600 Reporting Threshold Delayed The IRS has announced a delay in implementing the new reporting thresholds for third-party payment platforms. Set to take effect for the upcoming tax filing season, third-party settlement organizations will now not be required to report tax year 2022 transactions on Form 1099-K to the […]
IRS Updates Mid- December
2020 Unemployment Exclusion FAQ Update The IRS has updated the frequently asked questions (FAQs) for the 2020 unemployment compensation exclusion. The updates can be found in Fact Sheet 2022-39, and include questions regarding Form 1040-X; Impact to Income, Credits, and Deductions; Receiving a Refund, Letter, or Notice; and Finding the Unemployment Compensation Amount. New for […]
Tax Updates November 28
IRA Owners Can Give, Tax-Free The IRS reminds IRA owners age 70½ or over that they have the option to transfer up to $100,000 to charity tax-free each year. These qualified charitable distributions (QCDs) offer an easy way to give to charity before the end of the year. For those who are at least 72, […]
IRS Updates
Comments Requested on Energy Guidance The IRS has issued notices asking for comments on various aspects of energy tax benefits in the Inflation Reduction Act. Constructive comments may aid the agency in drafting guidance geared to the needs of entitled parties. Notice 2022-56 asks for comments regarding qualified commercial clean vehicles provisions and alternative fuel […]
5 Scams to Avoid
5 Scams to Avoid by Paul Davis Financial scammers are always attempting to find new and interesting ways to get access to your money. While scammers often make little mistakes that show their hands to their targets, you might find yourself already in communication or even scammed before you catch on. To help you stay […]
Late September IRS Updates
Improperly Forgiven PPP Loans are Taxable The IRS has released guidance addressing improper forgiveness of Paycheck Protection Program (PPP) loans. When a PPP loan is forgiven based upon misrepresentations or omissions, the taxpayer is not eligible to exclude the forgiven loan proceeds from taxable income. Taxpayers who inappropriately received PPP loan forgiveness are encouraged to […]
IRS Updates September 13
Estimated Taxes Due 15 September The IRS reminds taxpayers who pay estimated taxes that the deadline for payment of their third quarter estimated taxes is September 15, 2022. Those who typically make quarterly estimated tax payments are the self-employed, investors, retirees, or those receiving income from dividends, interest, rental income, alimony and other sources not […]
IRS Updates End of August
Interest Rates to Increase The IRS has announced that interest rates will increase again, beginning October 1, 2022. Individuals will see an increase of 1% as compared to the quarter that began in July, with 6% as the rate for underpayments (taxes owed but not yet paid) and overpayments (payments made in excess of the […]
Tax Updates End of May 2022
Interest Rates Increase The IRS has announced that interest rates will increase for the third calendar quarter of the year, beginning July 1, 2022. The rates will be: 5% for overpayments (4% in the case of a corporation). 2.5% for the portion of a corporate overpayment exceeding $10,000. 5% for underpayments. 7% for large corporate […]
Tax Updates Mid April
Educator Expense Deduction to Increase For the first time since it was enacted in 2002, the special educator expense deduction limit has increased from $250 per year to $300 per year. The increase begins in 2022, so out-of-pocket classroom expenses for the current year can be claimed in the deduction when filing 2022 federal income […]