IMPORTANT TAX UPDATES
Understanding the changes to tax laws and regulations can seriously affect your business and personal tax return. Make sure that you have a tax preparer that is aware of these changes and can answer any questions you may have regarding these changes. If you are in need of a professional tax preparer, please contact a Succentrix Business Advisor near you!
1. IRS delays $600 reporting threshold change for issuing Form 1099-K
The IRS announced a delay to the change of reporting thresholds for third-party settlement organizations. Third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount.
The IRS released guidance outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting that would generate Form 1099-Ks for taxpayers. This news release is also available in Spanish and Simplified Chinese.
2. Clean Energy
Credits
Home improvements and residential expenditures The IRS released frequently asked questions (FAQs) about energy efficient home improvements and residential clean energy property credits. The Inflation Reduction Act of 2022 (IRA) amended the credits for energy efficient home improvements and residential energy property. These FAQs provide details on the IRA’s changes to these tax credits, information on eligible expenditures, and provides examples of how the credit limitations work.
Clean vehicles guidance
3. Standard mileage rates for 2023; Business use increases 3 cents per mile
The IRS issued the 2023 optional standard mileage rates for calculating deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Notice 2023-03 contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance.
4. Final 2022 quarterly estimated tax payments due January 17
Taxpayers who paid too little tax in 2022 are urged to make fourth quarter estimated tax payment on or before January 17, 2023 to avoid an unexpected potential tax bill or penalty when they file in 2023.
Find helpful estimated tax payments information to: - Act now to avoid penalties
- Know what’s taxable o Stay current using the Tax Withholding Estimator
- Understand who needs to make a payment
5. Interim guidance on new corporate alternative minimum tax
The Treasury Department and the IRS issued Notice 2023-07, which provides interim guidance regarding the application of the new corporate alternative minimum tax (CAMT) until the issuance of proposed regulations.
6. Other Tax News
The following information may be of interest to individuals and groups in or related to small businesses:
IRS reminds those over age 72 to start withdrawals from IRAs and retirement plans to avoid penalties
Saver’s Credit higher limits can help low- and moderate-income workers save more in 2023
Treasury, IRS issue guidance on new Sustainable Aviation Fuel Credit
IRS presents its fiscal year 2022 Agency Financial Report
Treasury, IRS issue guidance on corporate stock repurchase excise tax in advance of forthcoming regulations
Treasury, IRS provide transitional guidance for broker reporting on digital assets
For any questions, please contact a Succentrix Business Advisor Near You!
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“Small Businesses Self-Employed: Internal Revenue Service.” Small Businesses Self-Employed | Internal Revenue Service, https://www.irs.gov/businesses/small-businesses-self-employed.