IRS Notice 2022-36 indicates that the IRS will provide automatic retroactive relief for taxpayers who filed returns late for the 2019 and 2020 tax years. To be eligible for the relief, generally, income tax returns must be filed on or before September 30, 2022, and information returns must have been filed for the 2019 tax year on or before August 1, 2020 and must have filed returns for the 2020 ...
At the end of the day on September 12, 2022, New York State announced a retroactive change to the tax reporting instructions for the pass-through entity tax (PTET), as well as entities that paid certain taxes to other states, for the 2021 tax year. There are two categories of entities that are affected by this retroactive change. First, S corporations that made voluntary estimated PTET payments ...
Effective for forms filed on or after September 19, 2022, exempt organizations that file the CHAR500, Annual Filing for Charitable Organizations, must file the form electronically using the Charities Bureau’s new online web filing system. Prior to this, the form was permitted to be filed on paper. Information about the new web filing system is available from the Charities Bureau of the New Yor...
S corporations, partnerships and LLCs that have New York City resident owners now have the option to elect to be subject to a brand-new voluntary New York City pass-through entity tax (PTET) system for the 2022 tax year. While the NYC PTET was originally scheduled to become effective for the 2023 tax year, a new law in New York State that was enacted on August 31, 2022 (S09454) accelerates the...
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...
