By KLATZKIN TAX TEAM
In February 2024, the IRS announced that interest rates will remain the same for the second quarter of 2024, which begins April 1, 2024. The rates remain unchanged from the first quarter of 2024 and the fourth quarter of 2023…
In 2021, Congress passed the Corporate Transparency Act intending to fight and prevent money laundering, illegal financing activities, corruption, and tax fraud.
In mid-December, the IRS announced the new optional standard mileage starts that will be in effect starting January 1, 2024. The rates are used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes.
By ISHAAN ANAND, CPA
In mid-December, the IRS announced the new optional standard mileage starts that will be in effect starting January 1, 2024. The rates are used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes.
The end of the year is a time for celebration, connection, renewal, and optimism for the future. It is filled with holiday celebrations, extended time with loved ones, and a chance to disconnect from the daily routine. However, it is also a chance to take advantage of opportunities that can save tax dollars now and in the coming year. Tax saving strategies include maximizing retirement plan contributions, increasing charitable contributions, prepaying educational expenses, and others. While the impact will vary based on each taxpayer’s situation, making even one of these or other moves before year end could add to significant savings.
During the height of the COVID-19 pandemic, the IRS made a temporary change that allowed electronic signatures on some forms, documents, and returns. In October 2023, that change was made permanent in the Internal Revenue Manual (IRM).
In November, the IRS announced new contribution limits for retirement plans, which will take effect in 2024. For employees participating in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan, the contribution limit will increase to $23,000 (up from $22,500). The annual contribution limit to IRAs will increase to $7,000 (up from $6,500).
In September, the IRS announced a moratorium on processing new Employee Retention Credit (ERC) claims through at least the end of 2023 amidst concerns about an inundation of improper claims. The IRS has now released the details of a special withdrawal process to help those concerned about the validity of their ERC claims.
By KLATZKIN TAX TEAM
As students and teachers head back to the classroom for a new school year, the IRS wants to remind teachers and educators that they can deduct up to $300 in out-of-pocket classroom expenses for 2023 when they file their tax return in 2024. This is the same limit as 2022, although the limit can rise in $50 increments in future years based on inflation. If an educator is married and filing jointly with another educator, the limit increases to $600, although it is still limited to $300 per spouse.
In September, the IRS announced a moratorium on processing new Employee Retention Credit (ERC) claims through at least the end of 2023 amidst concerns about an inundation of improper claims. The IRS and tax professionals are worried that a large portion of new claims are actually ineligible, putting businesses at risk due to pressure and scams from aggressive promotors.
