Accounting and Consulting Group

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 Withdrawn claims will be treated as if they were never filed.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. …

When fake charities scam unsuspecting donors, the proceeds don’t go to those who need the help, and those contributing to these fake charities can’t deduct their donations on their tax return. Those who wish to make donations should use the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to help find or verify qualified, legitimate charities. This news release is also available in Spanish and Simplified Chinese.

As a barrage of aggressive broadcast advertising, direct mail solicitations and online promotions continues, the IRS renews an alert for businesses to watch out for tell-tale signs of misleading claims involving the Employee Retention Credit. The IRS advises businesses to work with a trusted tax professional, not someone promoting the credit. The IRS stepped up enforcement actions, including audits and more. …

The IRS recently reissued a warning urging taxpayers to review the Employee Retention Credit guidelines before trying to claim the credit. Businesses should be cautious of advertised schemes and direct solicitations promising tax savings that are too good to be true. “While this is a legitimate credit that has provided a financial lifeline to millions of businesses, there continue to be …

IRS Free File expanded to state return filingMillions of eligible taxpayers in more than 20 states can use the IRS’s Free File Guided Tax Preparation service to file both federal and state returns. Any taxpayer or family earning $73,000 or less in 2022 can use this free service. Beware of new filing season scams involving Form W-2 wagesNew scams urge people …

The 2023 tax filing season has started with a focus on improving service and a reminder to taxpayers to file electronically with direct deposit to speed refunds and avoid delays. The filing season news release covers efforts to increase customer service and offers tips taxpayers can follow for a smooth filing season. _________________ January 31 deadline for wage statements: Forms W-2, W-3, …

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.

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 …

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. …

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

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 …

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 …

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 …