e-News for Small Business Issue 2023-12

Beginning Jan. 1, 2024, businesses must e-file all Forms 8300 (and other certain types of information returns required to be filed in a given calendar year) if they're required to file at least 10 information returns other than Form 8300.

Many businesses are finding the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction ? and they get an email acknowledgment of receipt. Businesses can also batch e-file their reports, which is especially helpful to those required to file many forms.

2.??IRS announces sweeping effort to restore fairness to tax system with Inflation Reduction Act funding; new compliance efforts

Capitalizing on Inflation Reduction Act funding and following a top-to-bottom review of enforcement efforts, the IRS announced the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation's tax laws.

The effort, building off work following last August's IRA funding, will center on adding more attention on wealthy, partnerships and other high earners that have seen sharp drops in audit rates for these taxpayer segments during the past decade.

The changes will be driven with the help of improved technology as well as Artificial Intelligence that will help IRS compliance teams better detect tax cheating, identify emerging compliance threats and improve case selection tools to avoid burdening taxpayers with needless "no-change" audits.

3.??Third quarter estimated tax payment due Sept. 15

A reminder to taxpayers who make estimated tax payments ? the deadline to submit third quarter payments is Sept. 15, 2023.

Gig workers, sole proprietors, retirees, partners and S corporation shareholders generally must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return. The IRS Tax Withholding Estimator, Interactive Tax Assistant and the worksheet in Form 1040-ES, Estimated Tax for Individuals all offer clear step-by-step instructions to see if they?re required to make estimated tax payments. And the payments page on IRS.gov explains the many easy ways to pay.

4.??Tax relief: Hurricane Idalia and Hawaiian wildfires

The IRS announced tax relief for individuals and businesses affected by Idalia in Florida and for Hawaii wildfire victims in Maui and Hawaii counties. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make payments.

5.??IRS issues guidance on state tax payments

The IRS is providing additional guidance and certainty to states and their residents regarding the federal income tax consequences of state payments made to them. This is in addition to previous IRS guidance on state payments made in 2022 as explained in IRS News Release IR-2023-23.

Most taxpayers that receive state tax refunds do not have to include them as income for federal tax purposes. The guidance also covers payments that spill over from 2022 into 2023 and payments from state general welfare programs.

6.??Energy credits and deductions updates

Prevailing wage and apprenticeship requirements
The IRS issued proposed regulations related to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship (PWA) requirements.

Tax deduction for increased energy savings
Building owners placing into service energy-efficient commercial building property (EECBP), or energy efficient building retrofit property (EEBRP) may be able to claim a tax deduction. Find out more on eligibility and qualifications in this graphic, easy-to-understand e-Poster. Find more information on the IRS.gov energy efficient commercial buildings deduction webpage.

Clean vehicle credit changes
Consumers considering an automobile purchase should understand several recent changes to the new Clean Vehicle Credit for qualified plug-in electric drive vehicles, including qualified manufacturers and tax rules.

7.??IRS webinar educates workers about employer educational assistance programs to help pay student loans

Fall college semester is quickly approaching and the IRS reminds employers and employees that under federal law, employers who have educational assistance programs can use them to help pay student loan obligations for their employees. The IRS will hold a free webinar about Qualified Educational Assistance Programs on Sept. 14, 2023.

"The IRS wants to remind both employers and employees about this special feature that can help with student loans," IRS Commissioner Danny Werfel said. "There is a limited window of time for this educational assistance program, and the IRS wants to make sure employers don't overlook this option that can help businesses attract and retain workers."

8.??Videos now available in other languages

Form 1099-K informational video available in Korean, Russian and Spanish
Taxpayers who sell items or provide services and are paid by payment cards or through payment apps, may get a Form 1099-K that reports these transactions to the IRS. Taxpayers must keep good records of these payments throughout the year.

Taxpayers wanting to learn more on this topic can watch a new, short IRS video that?s also now available in Korean, Russian and Spanish.

Small Business Tax Workshop available in Spanish
The popular eight-video, interactive series Small Business Tax Workshop (SP) is now available in Spanish. It?s designed to help small business owners learn their tax rights and responsibilities.

9.??Other tax news

The following information may be of interest to individuals and groups in or related to small businesses:

Interest rates increase for the fourth quarter 2023
IRS announces administrative transition period for new Roth catch-up requirement; catch-up contributions still permitted after 2023
The IRS released a new e-Poster with information about passport issues tied to seriously delinquent tax debt and how taxpayers can resolve passport revocations
New school year reminder to educators; maximum educator expense deduction is $300 in 2023
Proposed regulations on reporting by brokers for sales or exchanges of digital assets; new steps designed to end confusion, help taxpayers, aid high-income compliance work

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