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” […]

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nonprofits are concerned that the standard used by builders to claim a tax deduction for energy-efficient buildings is outdated.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 […]