New business income payment threshold coming

If you receive business income payments through third-party payors, 2022 might be a game changer for your taxes. If these payments total at least $600 for the year, payors such as Zelle and Venmo are now required to file a Form 1099-K with the IRS. Previously, the threshold was $20,000. Some members of Congress want […]

After tax day: Take these action steps

The April tax filing deadline has passed, but that doesn’t mean you should push your taxes out of your mind until next year. Here are three tax-related actions that you should consider taking in the near term (if you filed on time and didn’t file for an extension). Retain the requisite records Depending on the […]

iRS destroyed 30 million information returns

Recently, the Treasury Inspector General for Tax Administration (TIGTA) audited the IRS because of its processing backlog and destruction of 30 million information return records (which it uses to identify taxpayers who don’t accurately report their income). TIGTA recommends that the IRS “establish processes and procedures to identify and address corporate, employer, and Heavy Highway […]

New regulations coming

You knew it was coming! Digital assets, including cryptocurrencies and nonfungible tokens, are likely to be subject to new regulations soon. The Joint Chiefs of Global Tax Enforcement currently is exploring ways to prevent digital asset-based tax crimes and money laundering. Proposed solutions include intelligence-sharing and coordinated investigation and enforcement actions. Meanwhile, the U.S. Financial […]

Inflation enhances the 2023 amounts for Health Savings Accounts

The IRS recently released guidance providing the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). High inflation rates will result in next year’s amounts being increased more than they have been in recent years. HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of […]

IRS update on delays

Many officials and groups have already weighed in on the IRS’s various pandemic-related delays and administrative problems. Now, National Taxpayer Advocate Erin Collins is recommending that the IRS extend the window for taxpayers to claim refunds and waive the time limit for filing refund suits. In normal times, taxpayers can generally request a credit or […]

Russia sanctions

President Biden has widened the circle of U.S. businesses prohibited from working in Russia or for Russian nationals to accounting, corporate formation and consulting services. (The newest sanctions don’t mention legal services.) In addition, sanctions have been extended to include industrial goods exported from Russia, limits on Russian state-controlled TV stations and visa restrictions on […]

Caring for an elderly relative? You may be eligible for tax breaks

Taking care of an elderly parent or grandparent may provide more than just personal satisfaction. You could also be eligible for tax breaks. Here’s a rundown of some of them. 1. Medical expenses. If the individual qualifies as your “medical dependent,” and you itemize deductions on your tax return, you can include any medical expenses […]

National Wildfire Awareness Month

The month of May is National Wildfire Awareness Month. In fact, wildfires are currently raging in New Mexico. The IRS recently issued tips for individuals and businesses to prepare in case they become victims of a natural disaster of any kind. These tips include securing key documents, such as tax returns, birth certificates and insurance […]

Payroll Taxes

The IRS is reminding business owners of the option to electronically file their payroll tax returns and make tax payments. Also known as employment taxes, payroll taxes include federal (and possibly state) income tax withheld from employee wages, as well as the employer and employee portions of Social Security and Medicare taxes. Taxpayers can file […]