In late January 2023, the IRS announced the opening of a new online portal where businesses can file Form 1099 series information returns, for free. The new system, called the Information Returns Intake System (IRIS), is available to all businesses but is expected to be particularly useful for small businesses that currently file their information returns by paper.
At the end of December, President Biden signed the Consolidated Appropriations Act of 2023 into law. While the primary purpose of the legislation was to allocate federal funding for the coming year, it did contain several other parcels of legislation within. One of these was the Securing a Strong Retirement Act of 2021, more commonly referred to as the SECURE Act 2.0. The long-awaited legislation aimed at new retirement savings reform is based on many of the changes initially proposed both in the House and Senate. These include changes to plan design, modified RMD rules, matching student loan payments, and expanded eligibility for part-time employees.
In 2021, the American Rescue Plan Act (ARPA) enacted a new $600 reporting threshold for third-party settlement organizations for 2022. However, in December 2022, the IRS announced a delay in the lower reporting threshold. Accordingly, third-party settlement organizations will not have to report tax year 2022 transactions on Form 1099-K, Payment Card and Third Party Network Transactions, to the IRS or the payee for the lower threshold amount.
When a business generates income from foreign sources, retains an interest in a foreign company, or has a foreign tax interest, additional IRS filings must be filed. This is especially true for pass-through entities (PTEs) such as partnerships, S-corporations, or limited liability companies (LLCs). Specifically, these companies are required to file Schedule K-2 and K-3.
In late November 2022, the IRS announced the interest rates that will go into effect for the first quarter of 2023, which begins January 1, 2023. The new rates, which have increased over the previous quarter, will be….
The Tax Cuts and Jobs Act of 2017 made several favorable tax changes that provided meaningful benefits to businesses. Unfortunately, there were also changes that had an adverse impact on the same taxpayers. One important example is the $10,000 cap on the deduction for state and local taxes. Unfortunately, this modification created tax complications for owners of S-corporations, partnerships, and other pass-through entities. Essentially, it forced more of the tax burden on the individual tax returns of owners.
In Notice 2022-55, released on October 21, 2022, the IRS announced the changes coming to retirement-related items for the tax year 2023. These include contribution limits, income ranges, and cost-of-living adjustments. The contribution limit for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan is increased to $22,500, up from $20,500. The catch-up […]
In Revenue Procedure 2022-38, released on October 19, 2022, the IRS issued the tax year 2023 annual inflation adjustments. It includes changes to over 60 tax provisions, many of which will be relevant to taxpayers filing their returns in 2024.
In late September 2022, the IRS released Notice 2022-44, which outlined the changes coming to the special per diem rates used by taxpayers to substantiate ordinary and necessary business travel expenses. Beginning October 1, the rates are slightly higher.
In June 2022, New Jersey Governor Phil Murphy signed the Fiscal Year 2023 Appropriations Act, also known as the State’s budget for the coming fiscal year. One highlight of the budget is the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program (ANCHOR). This program replaces the Homestead Benefit program and will provide relief to double the number of homeowners and also include renters, which the previous program did not.
