The Secure Act changes part time employee participation in 401ks come 2025

The SECURE Act made several notable changes to 401(k) plan eligibility. Currently, employers can require part-time employees to work three years or three consecutive 12-month periods of at least 500 hours of service each before the workers become eligible to contribute. But beginning Jan. 1, 2025, only two years of service will be required. To […]

One week into tax season – let the filings begin

This year’s tax season is open! On Jan. 29, the IRS started accepting and processing federal tax returns. The regular filing deadline is April 15, but taxpayers can apply for an extension to file by Oct. 15 by submitting Form 4868. Understand that an extension to file isn’t an extension to pay. To help avoid […]

Are you buying a home with someone you aren’t married to?

Are you buying a home with someone you aren’t married to? If so, the IRS says that you may each be entitled to deduct half of the cost of the mortgage interest and real property tax you paid. This is true even if only one of you receives a Form 1098, Mortgage Interest Statement, from […]

Filing season is open

The IRS began accepting 2023 tax returns on January 29. Before we prepare your return, here are some common mistakes to avoid that could save you time and effort. While you may want to get filing over, wait until you’re certain you have all your tax reporting documents. These include Forms 1099 and W-2, donation […]

IRS announces delay in 990-T filings

Certain tax-exempt organizations that must file Forms 990-T, Exempt Organization Business Income Tax Return, will be unable to file electronically until March 17, 2024, due to a system upgrade. This will affect certain taxpayers with filing due dates from Jan. 15, 2024, through March 15, 2024. The IRS said affected taxpayers can request a six-month […]

Does the IRS notice have you confused? Improvements are on the way.

Have you ever been perplexed when reading an IRS letter you received in the mail? You’re not alone. The IRS is attempting to simplify and clarify its letters by launching the Simple Notice Initiative. The new program will review and redesign hundreds of documents with an immediate focus on the most common notices that individual […]

IRS reminds taxpayers to answer question on digital assets

Are you properly accounting for your “digital asset-related” income? The IRS is reminding taxpayers that they must answer a digital asset question and report all digital asset-related income when they file their 2023 income tax returns. Common digital assets include convertible virtual currency and cryptocurrency, stable coins and non-fungible tokens. The question, which appears at […]

Clarification on the census tract requirement

A recent IRS notice clarifies the “census tract requirement” to quality for the alternative fuel vehicle refueling property credit. Eligible tracts must be in low-income areas in the United States or U.S. territories, based on Community Development Financial Institutions Fund data. Also eligible are tracts in nonurban areas. To identify nonurban areas, the IRS plans […]

The Tax Relief for American Families and Workers Ac

The Tax Relief for American Families and Workers Act, which was approved by the U.S. House Ways and Means Committee, makes changes to the current tax treatment of research and development (R&D) expenditures. Right now, a business must amortize such costs after Dec. 31, 2021, over a five-year period. Previously, they could be deducted in […]

Clean Energy Credits have two delivery methods

The Inflation Reduction Act created two new tax credit delivery mechanisms, elective pay (otherwise known as direct pay) and transferability. These enable state and local governments, nonprofits and other entities to claim clean energy tax credits. Using the IRS’s Energy Credits Online (ECO) tool, more than 1,000 projects have been registered. To facilitate receiving a […]