Accounting and Consulting Group

Treasury, IRS issue proposed regulations on new Roth catch-up rule, other SECURE 2.0 Act provisions The Department of the Treasury and the IRS issued proposed regulations addressing several SECURE 2.0 Act provisions relating to catch-up contributions, which are additional contributions under a 401(k) or similar workplace retirement plan that generally are allowed with respect to employees who are age 50 or older. …

Agency continues historic improvements to expand, enhance tools and filing options The nation’s 2025 tax season will start on Monday, Jan. 27, and will feature expanded and enhanced tools to help taxpayers due to the agency’s historic modernization efforts. Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on …

The Treasury and IRS released regulations and guidance for these credits:

The IRS reopened the Voluntary Disclosure Program for the Employee Retention Credit through November 22 to help businesses correct improper payments at a 15% discount and avoid future audits, penalties and interest. The IRS urges businesses that received Employee Retention Credit payments to recheck eligibility requirements and consider the reopened program. The IRS also announced plans to mail up to 30,000 letters to reverse …

The Treasury and the IRS issued final regulations updating the required minimum distribution (RMD) rules. The final regulations reflect changes made by the SECURE Act and the SECURE 2.0 Act impacting retirement plan participants, IRA owners and their beneficiaries. At the same time, Treasury and IRS issued proposed regulations, addressing additional RMD issues under the SECURE 2.0 Act. 

New scam targeting clean energy tax credits The IRS warns taxpayers not to fall victim to a new emerging scam involving buying clean energy tax credits. Unscrupulous tax return preparers are misrepresenting the rules for claiming the credits under the Inflation Reduction Act. They’re claiming credits that the taxpayer is ultimately unable to benefit from. The scam is generally targeting Form …

The IRS is offering office hours through Microsoft Teams for entities to ask questions about the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is required to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Register at the links below. Attendees can come for as much time as they’d …

The Treasury and the IRS issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law. See more information in Fact Sheet 2024-23.

In an effort to provide more resources for taxpayers during this filing season, the IRS revised frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions. The FAQs now offer more general information, common situations, along with more clarity for industry and identifies which organizations should send Forms 1099-K. The FAQs are in addition to the recently …

The IRS has launched a new webpage on IRS.gov explaining the Employer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees. “We’ve heard that some employers may be overlooking this important credit, so the IRS has created a new one-stop shop for information on IRS.gov that provides an easy place to learn more,” said IRS Commissioner Danny Werfel. The …

Adis Smith, a tax return preparer formerly of Maryland, was sentenced to 27 months in prison for preparing false tax returns. Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In addition to the term of imprisonment, Smith was ordered to serve one year of …

The IRS has announced Monday, Jan. 29, 2024, as the official start date of the nation’s 2024 tax season when the agency will begin accepting and processing 2023 tax returns. Taxpayers will continue to see helpful changes following ongoing transformation work at the IRS, including: 

As part of an ongoing initiative aimed at combating dubious Employee Retention Credit (ERC) claims, the IRS recently launched a Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing ERC claims in error. Qualifying clients interested in this program have until March 22 to apply using Form 15434, Application for Employee Retention Credit Voluntary Disclosure …

The amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000, from $22,500 in 2023. Also, the limit on annual contributions to an IRA increased to $7,000, from $6,500. The IRA catch up contribution limit for individuals aged 50 and older remains at $1,000 for 2024. Details on these and other retirement-related cost-of-living adjustments for 2024 are in Notice …

The IRS announces a new Employee Retention Credit claim withdrawal process for taxpayers who filed an ERC claim and are concerned about its accuracy. The new process lets certain businesses withdraw their claims to avoid getting a refund for which they’re ineligible. Withdrawn claims will be treated as if they were never filed. The IRS will not impose penalties or interest. Businesses …

The IRS launched the first phase of the business tax account, allowing unincorporated sole proprietors who have an active Employer Identification Number to set up an account, view their business profile and manage authorized users. Over time, the business tax account will also allow business taxpayers to check their tax payment history, make payments, view notices, authorize powers of attorney and …

Protect the business against online threats As the tax season approaches, the IRS and its Security Summit partners encourage taxpayers during National Tax Security Awareness Week to remain vigilant against online threats and learn best practices to protect against cybersecurity attacks. Beware of fake charities; use IRS tool to verify legitimate organizations When fake charities scam unsuspecting donors, the proceeds don’t go to those …

Clean vehicle sellers and dealers should register by Dec. 1 The IRS reminds dealers and sellers of clean vehicles to register their organizations immediately on the Energy Credits Online tool. The IRS is strongly urging sellers of clean vehicles to register by Dec. 1, 2023, if they want to be in a position to receive advance payments starting Jan. 1, 2024. …

As a reminder, taxpayers with an ITIN can access their IRS online account, which provides balance due, payment history, payment plans, tax records, and more. ITIN holders will first verify their identity through a one-time video chat process. During this verification, they will provide documentation proving their identity, address, and ITIN. Once verified, taxpayers can access many IRS services including Online Account, Get …

The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are currently recruiting volunteers for the upcoming filing season. VITA/TCE sites can be found nationwide and prepare millions of tax returns each year for low- to moderate-income taxpayers at no cost. The free tax program serves populations such as rural taxpayers, limited English speakers and senior citizens. …