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.

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….