As discussed in in our post on November 14, 2023, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. This reporting must be done during 2024. On November 29, 2023, the Financial Crimes Enforcement Network (FinCEN) finalized a new rule that affects entities that are newly-formed during 2024. For ...
In Notice 2023-74, the IRS has announced another delay in the implementation date of the lower filing threshold for Form 1099-K, Payment Card and Third-Party Transactions. The threshold for filing Form 1099-K for the 2023 tax year was scheduled to be $600 for the year. The IRS has delayed this lower threshold for the 2023 tax year, so that the prior threshold will continue to apply for the 202...
Update: See our post on December 5, 2023 regarding a change in due date for entities created during 2024. As discussed in in our post on December 13, 2022, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. This reporting must be done during 2024. We also have a video discussing this new requ...
As discussed in in our posts during June 2023, the threshold for the e-file mandate for Forms W2 and 1099 has been lowered to 10, effective for forms to be filed for the 2023 tax year, beginning on or after January 1, 2024. We also have a video discussing this new requirement. If you have not already done so, you need to register to e-file Forms W-2 and 1099 on behalf of clients. Informati...
The IRS delayed the effective date of this lower threshold. See our post on November 29, 2023. As discussed in our post on January 24, 2023, the threshold for filing Form 1099-K, Payment Card and Third-Party Transactions, for the 2023 tax year will be significantly lower than in prior years. For the 2023 tax year, third-party payment platforms will be required to file Form 1099-K for any ac...
The IRS recently announced that taxpayers who are required to e-file Forms 1099 and W-2 will also be required to electronically file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. This change is scheduled to be effective as of January 1, 2024. As discussed in our posts during June 2023, the threshold for the e-file mandate for Forms W2 and 1099s has been r...
The new fiscal year for the federal government begins on October 1, 2023, and so far, Congress has been unable to agree on spending authorization legislation for the new fiscal year. Without such legislation being enacted before October 1, the federal government will shut down after September 30, 2023. If the government shuts down, it is likely that the IRS will furlough some of its employees,...
New York State recently announced a useful change to the pass-through entity tax (PTET) for entities that elect to be subject to both the New York State PTET and the New York City PTET. If an entity has an overpayment of the New York State PTET, that overpayment will now be credited to a balance due for the New York City PTET, and vice-versa. Any net overpayment that exceeds the combined amoun...
The New York State 2023-2024 budget legislation enacted earlier this year increased the rate of tax for the metropolitan commuter transportation mobility tax (MCTMT) for those with self-employment income that is attributable to the five boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens and Staten Island). The tax applies to net self-employment earnings if such earnings exceed $50,0...
As discussed on page 44 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book, practitioners must annually certify that they have a written information security plan for protecting client data when they renew their Practitioner Tax Identification Number (PTIN) each year. The IRS has updated its Publication 5708, Creating a Written Information Security Plan for your Tax &...
