As discussed in our post on May 24, 2022, New York State extended the time for entities that wish to elect to be subject to the New York pass-through entity tax (PTET) for the 2022 tax year. The normal due date for the 2022 election was March 15, 2022. Entities that missed that due date are permitted to make the election on or before September 15, 2022 for the 2022 tax year. To make the election...
The Inflation Reduction Act of 2022 was enacted on August 16, 2022, and it contains important new tax provisions. The new law provides for an expanded residential energy credit. The credit, reported on Part II on page 2 of Form 5695, Residential Energy Credits, was subject to a lifetime limit of $500, and it most recently expired after December 31, 2021. The new law extends the credit so that it...
The IRS recently announced that practitioners who have never used the IRS e-services system (used to access client transcripts and other information for clients who have signed authorizations granting the practitioner access) and who wish to sign up for it must create an account with ID.me as part of setting up the new e-services account. ID.me is a third-party identity verification system which...
Practitioners must be constantly on guard for the dangers of data breaches and cyberattacks. Make sure that you have an information technology (IT) provider or personnel who constantly monitors your network and data, updating your firewalls, operating systems, antivirus software and other protective systems. Make sure that your data backup system is working properly. Regularly open files f...
Starting in July, the New York State Department of Labor will begin to send bills to employers for interest owed by the employers. The interest relates to a federal loan taken by New York State during the pandemic, and its cost is passed on to New York employers. The notices will refer to the amount due as the “Interest Assessment Surcharge.” The amount due will be about $28 per employee, us...
In June 2022, New York State began mailing checks to certain homeowners as part of its new homeowner tax rebate credit program. Based on current law, this program is scheduled to expire after 2022. To be eligible for the 2022 checks, homeowners must be registered for the STAR exemption or STAR credit, and they must have had income of $250,000 or less on their 2020 income tax returns. For thi...
In Announcement 2022-13, the IRS indicated that it is raising the standard mileage allowance from 58.5 to 62.5 cents per mile, effective July 1, 2022. The lower amount will apply for all miles traveled during the first half of 2022, while the increased amount will apply for all miles traveled on or after July 1, 2022. The allowance for medical travel will also increase from 18 to 22 cents per ...
As a reminder, entities that have elected to be subject to the New York pass-through entity tax (PTET) for the 2022 tax year must make the second quarter estimated tax payment by June 15, 2022. Many entities have already pre-scheduled the debits for the estimated tax payments for the remainder of the year. For those entities that have not yet done so, they can use the on-line services account,...
When practitioners file an extension for a client, the tax preparation software typically cannot be used to set up debits for estimated tax payments for the current tax year until the actual return is filed for the client. If a client needs to make estimated tax payments for the second quarter of 2022, and the client’s tax return will not be finalized before the June 15, 2022 due date for the ...
A newly-enacted law in New York State extends the time for entities that wish to elect to be subject to the New York pass-through entity tax (PTET) for the 2022 tax year. (See New York State Senate Bill 8948, enacted on May 6, 2022.) The normal due date for the 2022 election was March 15, 2022. Entities that missed that due date will be permitted to make the election on or before September...
