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” […]

A look at ESG investing

Credit denied in Research Tax credit claim case

Recently, the IRS sought to recover a $576,756 tax refund (plus interest) paid to a married couple. The tax agency argued the couple wasn’t entitled to a passthrough research tax credit they claimed for a construction S corporation in which the husband held a 73% interest. A U.S. District Court found the firm didn’t perform […]

Nonprofits comment on energy-efficient building standards

Several nonprofits are concerned that the standard used by builders to claim a tax deduction for energy-efficient buildings is outdated. The Inflation Reduction Act expanded the standard under Code Sec. 179D. But in a recent letter to the U.S. Treasury Department, four organizations claim that although the new law reduced to 25% the savings threshold […]

1099-K reporting coming soon

Did you earn more than $600 in income in 2022 from selling goods or providing services? If you received that income via third-party payment applications such as Venmo or Paypal, you may receive Form 1099-K, “Payment Card and Third-Party Network Transactions.” According to the IRS, there’s no change to the taxability of the income. There […]

State Tax Ballot Measures to Watch on Election Day 2022

State Tax Ballot Measures to Watch on Election Day 2022 https://bit.ly/3gAxLsS

Federal deficit declines

The federal deficit in fiscal year (FY) 2022 was cut in half, to $1.4 trillion, compared to FY 2021, according to a statement from Treasury Secretary Janet Yellen. It was the largest-ever one-year decrease, she stated. However, receipts were below projections partly due to less-than-estimated collections of individual income tax. Total receipts were nearly $4.9 […]

Check before Donating to Charity

Holiday season is nearly here, and many taxpayers are beginning to think about giving to charity. Meanwhile, thieves are busy setting up charity scams. Before sending money, it’s a good idea to check the legitimacy of a charity using an IRS resource known as the Tax Exempt Organization Search tool. You can use it check […]

What do the 2023 cost-of-living adjustment numbers mean for you?

The IRS recently issued its 2023 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, many amounts increased considerably over 2022 amounts. As you implement 2022 year-end tax planning strategies, be sure to take these 2023 adjustments into account. Also, keep in mind that, under the Tax Cuts and Jobs Act […]

Retirement Plan contributions updated for 2023

In 2023, individuals will be able to contribute up to $22,500 to their 401(k) plans, the IRS announced. The same is true for 403(b) plans and most 457 plans. This is up from $20,500 in 2022. The increase is part of the cost-of-living adjustments made annually. The catch-up contribution limit for employees age 50 and […]