What to know before filing your 2022 tax return in Illinois, Missouri

What to know before filing your 2022 tax return in Illinois, Missouri – KSDK.com https://bit.ly/3WyZ0mP

Income exclusion rules

An employee may be able to exclude from income the value of lodging provided by an employer if certain conditions are met. The lodging must be “furnished on the business premises” and be “for the convenience of the employer.” Plus, the employee must be required to accept the lodging as a condition of employment. In […]

IRS improvements planned for 2023 filing season

The IRS plans to add to its digital capabilities and flesh out its tax assistance services this filing season, according to Ken Corbin, commissioner of the tax agency’s Wage and Investment Division. Corbin recently explained how this filing season will be noticeably different than from years past. He said that the IRS is expanding online […]

New IRA Lets You Take IRA Withdrawals Later

New IRA Lets You Take IRA Withdrawals Later – AARP https://bit.ly/3kJtJA8

Burden of proof for deductions

Business owners can generally deduct the ordinary and necessary costs to conduct business. However, the burden to prove the deductions are legitimate is on the taxpayer. In one case, a married couple wholly owned a software development S corporation. The U.S. Tax Court disallowed many deductions they claimed over multiple years. The couple provided a […]

GAO recommends changes to reporting on top IRS reported tax scams

Can you spot an abusive tax scheme? The IRS is currently aware of over 40 types of tax schemes marketed by promoters. These schemes help taxpayers illegally dodge the taxes they owe, causing the “tax gap” to widen. According to a report by the Government Accountability Office (GAO), the IRS needs to make it easier […]

Filing deadline approaching

Reminder: Employers and other businesses must file certain 2022 wage statements soon. Employers must file their copies of Form W-2, Wage and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements with the Social Security Administration by Jan. 31, 2023. The Jan. 31 deadline also applies to Form 1099-NEC, Nonemployee Compensation, which is […]

Qualified appraisals on gifts of cryptocurrency

If you donate cryptocurrency to a charity, you may need a qualified appraisal, depending on the amount of the gift. In Chief Counsel Advice, the IRS denied a taxpayer’s charitable deduction of a cryptocurrency contribution because she didn’t obtain a qualified appraisal. The taxpayer argued that no appraisal was necessary for the $10,000 donation she […]

1099-K transition update

In Dec. 2022, the IRS agreed with critics and announced a delay in implementing a $600 de minimis threshold (from a $20,000 threshold) for reporting third-party settlement organization transactions. The IRS stated there would be a one-year “orderly transition” period instead. However, taxpayers that performed backup withholding (generally for payees without taxpayer ID numbers) in […]

Federal budget deficit grew 29%

According to the Congressional Budget Office (CBO), the federal budget deficit grew by 29% ($418 billion) in the first quarter of fiscal year (FY) 2023 over the same period in FY 2022. Meanwhile, receipts declined by 2%, or $26 billion. In its latest report, the CBO drills down on these totals. Individual income and payroll […]