Tax & Accounting Update
IRS Temporarily Stops ERC Processing
In recent months and the further we got from the pandemic more and more bogus Employee Retention Credit (ERC) claims have been submitted to the IRS. The IRS has decided to put the program on hold through at least December 31st. The refundable tax credit (ERC) was one of the products of $2.2 trillion coronavirus packages known as the Cares Act which was supposed to aid employers in keeping workers on payroll during those hard times. To date the IRS has received over 3.5 million ERC claims. It is unfortunate that a lot of those claims have been fraudulent which shifted the IRS focus to reviewing these claims for compliance concerns. The IRS will soon come out with a special withdrawal option for those businesses that have filed an ERC claim, but the claim has not been processed. This option can be used by businesses which claim has not been paid and those business owners who were misled by promoters. To date, the IRS Criminal Investigation unit uncovered suspected pandemic fraud totaling more than $8 billion. For more details click on the link below.
IRS is going after Wealthy Tax Dodgers
The IRS plans to hire 3,700 employees with new positions opening in more than 250 locations. The new hires will help ramp up the compliance efforts against high income earners, partnerships, large corporations, and promoters. Last Friday the agency has announced that it would open examination for 75 of the largest U.S. partnerships by the end of September. For more details click on the link below.
Student Loan Repayment Update
The federal student loan payments are about to resume after a three-year hiatus. Payments will be due starting in October 2023. The Biden administration is continuing to enact what it bills as “targeted” student loan forgiveness through a variety of initiatives, even after the Supreme Court struck down Biden’s mass student debt relief plan earlier this summer. The Biden administration has launched a massive outreach campaign to get borrowers to enroll in the new SAVE plan. SAVE will result in $0 payments for borrowers making under 225% of the federal poverty limit for their family size. For a full article click on the link below.
Tax Reminders
Year End Planning
The last quarter of the year is the time for year-end tax planning. December 31st is just around the corner. If you own a business and are concerned about not knowing what you will owe at the end of the year, now is the time to discuss with your CPA options that you may have. Tax planning helps you estimate how much you are expected to owe in taxes for the year and what you can do to lower the tax liability. Business owners and self-employed individuals should be paying their taxes throughout the year by withholding out of their payroll checks and/or by making estimated tax payments
September 30th & October 16th Tax Deadline
This is a friendly reminder that Form 1041 U.S. Income Tax Return for Estates and Trusts with a tax year ending December 31, are due September 30th. 2022 individual tax returns (Form 1040) and calendar year 2022 C Corporation tax returns (Form 1120) that are on extension are due October 16th. The IRS announced tax relief for individuals and business affected by Idalia in Georgia. The taxpayers now have until February 15, 2024, to file individual and business tax returns and make tax payments. Similar relief is being provided to taxpayers in Florida and South Carolina. For more details click on the link below.
Let's Talk!
If you know of someone who needs tax and accounting help, please feel free to share with them my contact information. If they are still not sure about making a move please ask them to check out my newsletter.
For free consultation click on the link to schedule a one-on-one meeting with me over zoom or face to face. Schedule by clicking on a link below.
E-mail: dragana@dcmtax.com
Phone:318-751-5455