IRS Announces Another Form 1099-K Transition Year
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Adam Knop
1w ago
In late November, the IRS announced a delay in the $600 reporting threshold requirement for payment apps and online marketplaces. The decision was made due to feedback received from tax professionals and payment processors and general taxpayer confusion. The 2023 tax year will serve as another transition year leaving prior threshold reporting requirements in place. This means only payees who made gross payments of more than $20,000 or more than 200 transactions will remain. The delay is welcome news for businesses that would otherwise be required to prepare and submit Form 1099-K. To help clie ..read more
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Tax Relief for American Families and Workers Act of 2024
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Josh Crisp
1w ago
In late January, the House of Representatives passed important bi-partisan tax legislation that provides several saving opportunities for families and businesses. The Tax Relief for American Families and Workers Act of 2024 (Act) calls for the extension of several credits and incentives that expired at the end of last year. It includes an increase to the reporting threshold for Form 1099s, changes to federal Section 174 research and development (R&D) credit expense rules, an extension of bonus depreciation, and updates to the Child Care Credit. There is also a provision that calls for a ba ..read more
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IRS Issues Guidance on Emergency Savings Accounts
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Erin Carter
1M ago
The SECURE Act 2.0 passed into law in December 2022 calls for several updates to plan operations. Due to the comprehensive nature of the legislation, many updates are set to phase in over five years. Provisions effective in 2024 include introducing Starter 401k plans, student loan matching payments, deferral failure corrections, and introducing a new emergency savings account (PLESA). These accounts are limited to $2,500 in annual contributions and the first four withdrawals are tax-free. While regulations guiding all new provisions have yet to be issued, the IRS recently released Notice 2024 ..read more
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DOL Issues Final Rule on Worker Classification
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Josh Crisp
1M ago
There has long been concern that workers have been improperly classified as independent contractors to avoid required pay minimums, insurance benefits, overtime pay, and other employment-based protections. Earlier this month, the Department of Labor (DOL) issued Employee or Independent Contractor Classification Under the Fair Labor Standards Act (FSLA). This new guidance relies on the economic reality test supported by various reality factors. These include worker opportunity for profit or loss, nature, and degree of control over the work, permanency of the work relationship, and more. Other f ..read more
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IRS Announces ERTC Voluntary Disclosure Program
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Alexis Nash
1M ago
The Employee Retention Tax Credit (ERTC) is the only pandemic-era tax incentive program still available to eligible companies. While the program has officially closed businesses still have time to claim for eligible activities in 2020 and 2021. Unfortunately, the ERTC has become a favorite of aggressive promoters and fraudsters. This is reflected in the multiple warnings issued by the IRS about the high-pressure tactics and misleading information used by bad actors. Despite this, the flow of improper or ineligible claims continued resulting in a processing moratorium and introduction of a new ..read more
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BOI Reporting and Final Rule Updates from FinCEN
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Erin Carter
1M ago
Starting in 2024, many businesses will be required to report certain information about company ownership to the Financial Crimes Enforcement Network (FinCEN). The new requirement is mandated by the Corporate Transparency Act which passed in 2021. The purpose of the legislation is to make it easier for the federal government to fight tax fraud, money laundering, and terrorist activities financed through domestic companies. Under new rules, new and existing small businesses and limited liability companies are required to disclose information about their beneficial owners. This includes the name ..read more
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IRS Announces Another 1099-K Reporting Delay
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Carey Dagenhart
1M ago
Taxpayers who receive payments through providers such as PayPal, Venmo, and Etsy will be happy to learn the IRS has again delayed reporting changes. While the IRS was originally planning to require distribution of the forms for anyone who received $600 in payments or more through these third-party providers, the agency just announced another delay. This means the current payment threshold of $20,000 and 200 transactions will be in place for the current tax year. The higher reporting limits mean many will not be required to pay federal income tax on income earned through these sources. However ..read more
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IRS Expands Employee Retention Credit Enforcement
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Carey Dagenhart
2M ago
Over the last few months, the IRS has taken several steps to address the high number of ineligible or fraudulent Employee Retention Tax Credit (ERTC) claims.  The most recent step was to place a moratorium on the processing of new claims through the end of the year. This allowed extra time for claims to be reviewed under stricter standards, more intense audit work to be conducted, and criminal investigations to be opened on promoters and businesses. In addition to enhanced enforcement, the agency also created a new resolution program, the ERTC Withdrawal Program, which allows those who ma ..read more
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2023 Year End Tax Planning for Individuals
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Josh Crisp
2M ago
As the closing weeks of the year quickly approaches, there are many steps that individuals and families can take to reduce taxes. These steps can not only yield immediate savings but also set up additional opportunities in 2024 and beyond. While tax planning is most effective when conducted on an ongoing basis, there are steps to take now that can have an immediate impact. This includes optimizing gifting strategies, maximizing retirement plan contributions, prepaying university expenses, IRA conversions and tax loss harvesting. To reap the full benefit, it is essential to take action before D ..read more
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Qualified Charitable Distributions
Wilson Lewis Blog | Accounting Blog | Duluth CPA | Atlanta CPA
by Josh Crisp
3M ago
As the end of the year approaches, many executives and high-net-worth individuals are focused on tax-saving strategies. While there are several options available, depending on specific circumstances, making qualified charitable distributions (QCDs) can easily reduce taxable income. Taxpayers who must take required minimum distributions (RMDs) have the option to give up to $100,000 in tax-free gifts to an eligible charity. Payment is facilitated through the transfer of funds from the plan administrator directly to the eligible charity.  Using QCDs allows an individual to offset the tax bur ..read more
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