Significant Changes to Electronic Filing Requirements for 2023 Tax and Information Returns (Major impact for 1099’s) The Internal Revenue Service issued new regulations significantly expanding mandatory electronic filing of tax and information returns that require almost all returns filed on or after January 1, 2024, to be submitted to the IRS electronically instead of on…
Research and Experimental Expenses – Major Changes WHAT BUSINESSES NEED TO KNOW Businesses that invest in research and development should be aware of a major change to the tax treatment of research and experimental (R&E) expenses. The amendment to Internal Revenue Code (IRC) Section 174 made by the 2017 tax reform legislation known as the…
2022 Year-End Tax Planning for Individuals With rising interest rates, inflation and continuing market volatility, tax planning is as essential as ever for taxpayers looking to manage cash flow while paying the least amount of taxes possible over time. As we approach year end, now is the time for individuals, business owners and family…
2022 Year-End Tax Planning for Businesses U.S. businesses are facing pressure to drive revenue, manage costs and increase shareholder value, all while surrounded by economic and political uncertainties. Disruptions to supply chains brought about by the pandemic have continued into 2022. Inflation and rising interest rates have made the cost of debt, goods and…
Individual tax planning highlights Taxpayers should consider whether they can minimize their tax bills by shifting income or deductions between 2021 and 2022. Ideally, income should be received in the year with the lower marginal tax rate, and deductible expenses should be paid in the year with the higher marginal tax rate. If the marginal…
Year-end tax planning for businesses is especially difficult for 2021 because the Build Back Better Act has the potential to impact broad areas of taxation. Congress continues to negotiate a compromise. Unfortunately, it is difficult to know what is likely to emerge as the final version. In addition, although the effective date for most of…
For tax years beginning on or after January 1, 2021, eligible partnerships and S corporations may annually elect to pay the “pass-through entity tax” (PTET). This is an optional election. The benefit of doing so is that NYS income taxes normally limited to the state and local tax deduction of $10,000 on Schedule A can,…
In recent days the Treasury Department has issued some much-anticipated guidance on certain issues surrounding this potentially valuable credit. Some general highlights: Wages paid to majority owners and their relatives, as defined, are not considered qualified wages for purposes of obtaining the credit. In general, wages paid to unrelated, minority owners, will be eligible for…
What is an Economic Impact Notice? After a taxpayer has been issued an Economic Impact Payment, the IRS is required to mail an Economic Impact Notice to the recipient at their last known address. This notice provides information about the amount of the Economic Impact Payment, how it was made, and how to report any…
HSA Limits Increase for 2022 Contributions to a Health Savings Account (HSA) are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent and are adjusted annually for inflation. For 2022, the annual inflation-adjusted contribution limit for a Health Savings Account (HSA) increases to $$3,650…