Accounting and Consulting Group

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 …

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. 

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, …

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. …

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.

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 …

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 …

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 …

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.

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 …