The need for more robust retirement savings for workers is an issue which has been top of mind for legislators over the last several years. Broader access to employer sponsored retirement savings plan along with reduced hurdles to participation are just two of the many issues that have to be considered. Last December, Congress passed the Consolidated Appropriation Act of 2023, which included the SECURE Act 2.0. This legislation, named after the original SECURE Act passed in 2019, delivers several reforms and updates to benefit workers and make it less burdensome for small employers to offer retirement plans. While these reforms offer some measure of relief, many states have elected to make further changes.

The push towards renewable energy has been a priority of President Biden’s since taking office. Not only is it seen as a way to proactively manage climate change, but it ensures the United States remains a global leader in clean energy technology, manufacturing, innovation, and production. In fact, there have been several parcels of legislation, including the Inflation Reduction Act, which offer lucrative incentives for clean energy investments.

It’s never too early to start your tax planning, and the IRS recently announced several new and existing tax benefits that businesses can take advantage of in 2023, as well as some reporting changes that are coming this year.

The IRS recently announced that the nearly 1.5 million taxpayers who have unclaimed tax refunds for tax year 2019 have until July 17, 2023 to submit their returns. It is estimated that almost $1.5 billion in refunds are as yet unclaimed, with an average median refund of $893.

The federal Research & Development (R&D) tax credit has long been an important incentive available to businesses engaged in eligible innovation activities. The opportunity to receive a dollar for dollar incentive has helped many companies fund new projects while offsetting expenses on current programs. The ability to claim and deduct eligible expenses in the year incurred has provided significant benefit.

Each year, the IRS releases its “Dirty Dozen,” a list of tax scams that taxpayers should be wary of.  The list highlights common scams that put people at risk of losing money, personal information, data, and more. 

The IRS utilizes many different methods of communication in order to educate the general public, but it also sometimes needs to directly contact an individual taxpayer about a specific issue.  Here are some things to keep in mind if you are contacted by the IRS.

The federal Research and Development (R&D) tax credit not only encourages innovation but provides a significant tax saving opportunity. For many, the credit is so attractive because of the opportunity to deduct eligible expenses incurred as part of a project. When combined with the state-level saving opportunities, offered in both New Jersey and Pennsylvania, it is easy to understand the appeal of this lucrative credit.

In mid-February 2023, the IRS announced that interest rates will remain the same for the second quarter of 2023, which begins April 1, 2023. 

In 2023, New Jersey will see major changes in three areas of tax laws.