UPDATE March 2, 2023 – Governor Newsom’s office has announced California will conform to the October 16, 2023 tax filing and payments deadline extension. For additional information, please see the news release issued by the FTB: FTB extends filing deadline for taxpayers impacted by 2022-23 winter storms to Oct. 16, 2023
UPDATE February 23, 2023 – IRS postpones until October 16, 2023 tax filing and payment dates for California, Alabama, and Georgia taxpayers living in or having a business in a FEMA declared disaster area. For additional information, please see the news release issued by the IRS: May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia
Given the size and complexity of today’s tax code, avoiding disputes with the IRS can be difficult. Even a carefully run business can inadvertently run afoul of a new rule, a revised procedure, or updated guidance.
In recent years, however, some taxpayers dealing with IRS notices or enforcement actions have begun to use the complexity of federal law in their own defense, claiming the IRS itself failed to follow proper procedures when drafting regulations. In several cases, federal courts have agreed with the taxpayers, calling into question the validity of a growing number of IRS rules.
Although these cases involve a variety of tax issues, they have a common element: the taxpayers successfully sued the IRS for violating the Administrative Procedure Act (APA), a 1940s-era law designed to spell out acceptable rulemaking processes for the many new executive branch agencies that were created during the New Deal and World War II. (more…)
Since the IRS first introduced them for the 2021 tax year, Schedules K-2 and K-3 have caused concerns—and confusion—for many partnerships and S corporations. The purpose of the two schedules is to report information related to foreign financial activities, but some pass-through entities found themselves subject to the forms’ requirements—even though they had no foreign interests or concerns. (more…)
By Nick Price, CPA, Manager, Tax & Advisory
ASL Real Estate Group
The Inflation Reduction Act (IRA), which was signed into law on August 16, 2022, included expanded and extended tax credits and incentives to encourage energy efficient housing, commercial buildings, and vehicles. Our previous blogs discussed incentives for homeowners (A Greener Home Can Save You Green Under the Inflation Reduction Act) and vehicle buyers (Inflation Reduction Act Restructures Alternative Fuel Vehicle Credit). (more…)
By Anu Joshi, CPA, MST, Principal, Tax & Advisory
In late December of 2022, while most of us were busy with other things, Congress was working on passing a giant omnibus budget bill. The 2023 omnibus bill was signed into law by the President on December 29, 2022. Buried within it was the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022 (SECURE 2.0). It provides new incentives for employers to offer retirement plans to their employees and for employees to participate and improve their retirement security. SECURE 2.0 helps employees and their beneficiaries, owner-employees, small businesses, and retirees, and eases costs, administrative burdens, and penalties for inadvertent mistakes. (more…)
Although its official name is the Inflation Reduction Act of 2022, this wide-ranging tax and spending measure that was signed into law in August might be more accurately described as an energy-related tax incentives act. The new law, commonly referred to as the IRA, contains more than $270 billion in energy- and climate-related tax incentives, including 11 new programs to encourage businesses and individuals to produce and use clean or renewable energy. It also extends or expands another 14 energy-related tax incentives. (more…)
The ability to deduct research and development (R&D) costs as a current business expense, rather than treat them as a capital asset that must be amortized over time, has helped many businesses over the years. By enabling companies to lower their income tax burden, this tax treatment encouraged valuable research and technological innovation. (more…)
The Inflation Reduction Act, enacted in August 2022, significantly changed the qualifications for and calculation of the tax credit available for the purchase of an alternative fuel vehicle (electric and fuel cell vehicles). The Act created the Clean Vehicle Credit with one provision effective upon enactment and the remaining provisions phased in beginning in 2023. As a result of enactment, many vehicles that previously qualified for the credit earlier in 2022 no longer qualify. Significant changes and their effective dates are discussed below.
The IRS has updated its FAQ sheet to reflect guidance issued in 2023.
In early August 2022, a reduced version of the Biden Administration’s tax reform, climate change, green energy, and social policy agenda was passed by both the House and Senate. On August 16, 2022, President Biden signed the $750 billion Inflation Reduction Act of 2022 into law. The numerous changes will require significant guidance from multiple federal agencies to implement. With one exception, the Act’s provisions will be effective beginning January 1, 2023. We have summarized some of the key provisions below, and as guidance is released, will continue to keep you updated on how the Inflation Reduction Act may affect you or your business. (more…)