The American Rescue Plan of 2021 changed the 1099-K reporting threshold. Under the new law, Credit Card Vendors were required to report transactions paid in 2022 that exceeded a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. On December 23, 2022, the IRS delayed the implementation of the new $600 reporting threshold. … Read More

There are two points I want to highlight about the home energy credits. One, the new $1,200 energy credit is effective 1/1/2023. We are going to wait till after New Year to look into replacing our air conditioning for our home. For 2022 it’s a maximum of $500. Also, in the future they are going… Read More

In 2023 the 100% Bonus Depreciation ends, it will be 80% in 2023 and decrease 20% each year thereafter. Don’t worry for small business section 179 deductions still exist and you can claim approximately $1 million of 179 property per year. However, for large companies with huge Capital Expenditure their tax liability will start increasing… Read More

The IRS and Social Security released their indexes. They tie many things to various CPI indexes. Social Security increased their “COLA” amount, everyone is getting a 8.7% increase. That’s the first decent increase in at least over a decade. The IRS increased their tax brackets by increasing the brackets by 7%. For a married couple… Read More

  There so many things in this act.   Lots of Issues to cover.   I’ll start with increased IRS funding. They increased the following: Enforcement, $66 B (billion) to $111 B,   a $45 B increase or 69% increase.   The IRS significantly reduced the audits over the past 10 years, this will allow them to start working… Read More

The interest rates of overpaying or underpaying the IRS computed from the federal short-term rate determined during July 2022 have increased the percentage rate from 5% to 6%. A personal or corporate return will determine the correct rate. The new procedure goes into effect on October 1, 2022.1… Read More

Tax Filing season Taxpayers are already able to file corporate returns for 2021 and we will be able to file individual returns on January 24, 2022. The tax due date is April 18, 2022 As soon as you have your tax documents, please give me a call.… Read More

Gather and organize tax records – All the regular types of tax records plus three special forms and letters for Child Tax Credit Payment, Economic Impact Payments and Marketplace Insurance. Organized tax records make preparing a complete and accurate tax return easier. It helps avoid errors that lead to processing and refund delays. Individuals should have… Read More