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.

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.