New IRS Commissioner Named

IRS Commissioner Chuck Rettig’s term ends on Nov. 12. Treasury Secretary Janet Yellen recently announced that Douglas O’Donnell has been designated the acting commissioner and will succeed Rettig. O’Donnell has been with the IRS for 36 years, serving in various roles including his current post as deputy commissioner for services and enforcement. He’ll lead the […]

Inflation means you and your employees can save more for retirement in 2023

How much can you and your employees contribute to your 401(k)s next year — or other retirement plans? In Notice 2022-55, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for pensions, as well as other qualified retirement plans for 2023. The amounts increased more than they have in recent years due […]

Waiting on Hold?

It’s no secret that if you call the IRS, you could be waiting on hold for a long period of time. The IRS is addressing this problem by hiring 4,000 customer service representatives to answer phone calls and provide other services. The hiring surge is part of a much wider IRS improvement effort tied to […]

Tax Gap estimates released

The gross tax gap generally is defined as the difference between estimated “true” tax liability for a given period and the amount of tax that’s paid on time. The IRS recently released new tax gap estimates for tax years 2014 through 2016. The data shows that the estimated tax gap increased to $496 billion, a […]

How inflation will affect your 2022 and 2023 tax bills

The effects of inflation are all around. You’re probably paying more for gas, food, health care and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights Standard deduction. […]

Not for Profit Election activities

Are tax-exempt organizations allowed to engage in political activities? All 501(c)(3) organizations are prohibited from direct and indirect participation in any political campaign for or against any candidate for elected public office. This includes contributing to political campaigns or making public statements favoring or opposing a candidate. Violations may result in lost tax-exempt status. Certain […]

Flexible Spending Account contribution limit increases

Taxpayers that participate in employer-sponsored health Flexible Spending Accounts (FSAs) can contribute more in 2023. The annual contribution amount will rise to $3,050 (up from $2,850 in 2022). FSAs allow owners to pay for qualified medical costs with pre-tax dollars. That’s good news if you’re scrambling to keep up with rising costs. FSA owners use […]

New accounting rules for supplier finance programs

Does your company use supplier finance programs to buy goods or services? If so, and if you must adhere to U.S. Generally Accepted Accounting Principles (GAAP), there will be changes starting next year. At that time, you must disclose the full terms of supplier finance programs, including assets pledged to secure the transaction. Here are […]

Big Refund? Check your withholding

Are you counting on a big tax refund in 2023 to help with expenses? Other than forced savings, there’s no benefit to overpaying taxes through withholding and then waiting all year to get a refund. The IRS only pays interest if it takes more than 45 days to issue a refund on a filed tax […]

2022 versions of IRS Schedules K-2 and K-3 released

IRS Schedules K-2 and K-3 (for Form 1065) are used by passthrough business entities to report partnership shares subject to international taxation. On Oct. 26, the IRS released draft instructions for the 2022 versions of these schedules. In response to feedback from businesses and tax professionals, the draft instructions provide a new “domestic filing exception” […]