401K-IRA

Taxpayers should review the 401(k) and IRA limit increases for 2023

The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 — up from $20,500 for 2022. In addition, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver’s Credit will also increase for 2023.

1099K-tax-form

More taxpayers to receive a Form 1099-K

The IRS reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year. There is no change to the taxability of income – the only change is to the reporting rules for Form 1099-K. As …

handful of money

COVID: Broad-based penalty relief for millions of taxpayers

To help struggling taxpayers affected by the COVID-19 pandemic, the IRS issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 tax returns late certain 2019 or 2020 tax returns late. The IRS is also taking an additional step to help those who’ve already paid these penalties by providing a refund or credit. …

person marking her calendar

September 15 deadline for third quarter estimated tax payments

The IRS reminds taxpayers who pay estimated taxes that the deadline to submit their third quarter payment is September 15, 2022. Taxpayers with income that isn’t subject to withholding can learn more about making timely quarterly payments, including those who: Are self-employed, investors or retirees Have income such as interest, dividends, capital gains, alimony, cryptocurrency or rental income

Tax Deadlines CT

 2021 tax extension filers, don’t overlook important tax benefits

The IRS reminds taxpayers who’ve yet to file their 2021 federal income tax return to make sure they take advantage of the deductions and credits for which they’re entitled and to file electronically as soon as possible. “Each year, eligible taxpayers overlook money saving deductions and credits that can help them with the cost of raising a family, daycare, paying for …

IRS phone call scam

Avoiding IRS Scams

A new IRS fact sheet explains how taxpayers can know if a person calling or visiting their home or place of business is a legitimate IRS employee or an imposter. There are special instances where an IRS revenue officer or revenue agent may visit a home or business related to an unpaid tax bill or an audit; the IRS urges people with …

IRS mileage rate

IRS increases mileage rate for remainder of 2022

The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for …

crowdfunding and taxes

Crowdfunding and taxes

Crowdfunding is a popular way to raise money online. People often use crowdfunding to fundraise for a business, for charity, or for gifts. It’s important to know that money raised through crowdfunding may be taxable. Learn about what may be considered a gift, the form it’s reported on and careful record keeping. 

education-related tax benefits - classroom

 Education-related tax benefits for 2022

Expense deduction rises to $300 As the new school year begins, the IRS reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year. Find out who qualifies and what’s deductible. College students should study up on two tax credits Higher education, …

alarm clock lying on multicolored surface

2021 tax extension filers don’t need to wait until October 17

The IRS reminds the estimated 19 million taxpayers who requested an extension to file their 2021 tax return that they don’t have to wait until mid-October to do so. If a taxpayer has all the necessary information to file an accurate return, they can file electronically at any time before the October deadline and avoid a last-minute rush to file. …

accounting cash money using a calculator

Erroneous or incorrect balance due notices (CP-14)

The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are receiving erroneous balance due notices (CP-14 notices) or notices showing the incorrect amount. No immediate action or phone call is needed. Learn more about who is affected.

tax help from IRS - accountant in CT

New IRS Strategic Plan: Goal to help taxpayers

The IRS released a new five-year Strategic Plan that outlines its goals to improve taxpayer service and tax administration. Learn more about how the IRS plans to focus on: Enforcement – Enforcing the tax laws fairly and efficiently to increase voluntary compliance and narrow the tax gap People – Fostering an inclusive, diverse and well-equipped workforce and strengthen relationships with external partners …

how to help Ukraine

IRS provides guidance for leave donations to help Ukrainians

IRS Notice 2022-28 provides guidance to employers about special tax relief for leave-based donation programs they may set up to aid victims of the Russian invasion of Ukraine that began in February 2022.  Under a leave-based donation program, an employer may permit its employees to give up their vacation, sick or personal leave in exchange for cash payments by the employer to …

money for penalties and interest on taxes

Missed the April 18th deadline to file and pay taxes your taxes?

The federal income tax deadline has passed for most individual taxpayers. However, some haven’t filed their 2021 tax returns or paid their tax due. Anyone who didn’t file and owes tax should file a return as soon as they can and pay as much as they can to reduce penalties and interest. Electronic filing options, including IRS Free File, are still available on IRS.gov to prepare and file …

tax forms with calculator with coins on wooden surface

File electronically when ready; speeds refunds, avoids added interest, penalties

Don’t wait to file: IRS encourages taxpayers with October filing extensions and others who still need to file. Taxpayers who requested an extension have until October 17 this year to file their tax return. However, if a taxpayer has all the necessary information to file an accurate return, filing before summer vacation can be a win-win.

Tax Preparation, Accounting and Consulting Group, Milford CT

 Important filing season information

Child and Dependent Care Credit can help families, othersThe IRS issued a filing season reminder that those taxpayers who pay expenses for the care of a qualifying person while working or looking for work may qualify for an important tax credit. Voice and chat botsThe IRS announced it has begun using voice and chat bots on two of its specialized toll-free telephone assistance …

Income-Tax-Return

Top five reminders when filing income tax returns in 2022

With filing season beginning Monday, Jan. 24, the IRS has shared key items to keep in mind when filing federal income tax returns. Given the unique challenges for this tax season, the IRS offers a 5-point checklist that can help speed tax return processing and refund delivery while avoiding delays. Given the unprecedented circumstances around the pandemic and unique challenges for …

IRS pandemic digital changes

IRS turned the challenging demands of the pandemic into opportunities

In this issue of A Closer Look, Harrison Smith, co-director, IRS Enterprise Digitalization and Case Management Office, discusses how the immediate need to minimize in-person contact to protect taxpayers and employees led the IRS to take steps toward increasing digital interactions. The immediate need to minimize in-person contact to protect taxpayers and their employees led the IRS to take steps toward …

Ongoing IRS Issues

Have you experienced any of the following issues with the IRS? You have not received your tax refund for the year 2019 or 2020  You have paid the IRS what you owed and they may have even cashed your check but you are receiving notices from them with penalties and interest accruing for not paying. We have written to the …

Critical-IRS-Alert

Critical IRS Alert!

The IRS will be sending out two letters to taxpayers in January: ·     Letter 6419 – Advance Child Tax Credit Payments ·     Letter 6475 – Economic Impact (Stimulus) Payment It is important that your clients retain these letters. Entering incorrect advance child tax credit or economic impact payment amounts will cause delays in tax return processing and the issuance of refunds. If …