IRS Updates

Treasury Offers Foreign Banks and US Citizens Abroad Temporary Relief from FATCA

January 16, 2023

On December 30, 2022, the Treasury Department issued Notice 2023-11, guidance aimed at helping foreign banks and US citizens living abroad who have experienced problems staying in compliance with the US Foreign Account Tax Compliance Act (FATCA). Who is Affected by FATCA? FATCA primarily affects US citizens who have $10,000 or more in foreign financial…

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IRS Delays $600 Reporting Threshold for Form 1099-K

January 9, 2023

In November, we wrote about the IRS’s new $600 reporting threshold for third-party settlement organizations (TPSOs) and why it meant that more people would be getting 1099-K forms this January. TSPOs include payment platforms such as PayPal and Venmo, online marketplaces such as eBay and Etsy, and gig-worker platforms such as Uber and TaskRabbit. Since…

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IRS Backlog of Tax Returns Is Improving… Slowly

January 5, 2023

The Treasury Inspector General for Tax Administration (TIGTA), released a report on December 20, 2022, assessing the IRS’s plan to return to pre-pandemic inventory levels by the end of calendar year 2022. The report found that while the IRS has made progress in reducing its backlog, the backlog will continue into 2023. TIGTA is a watchdog…

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IRS & Dept. of Labor Renew Agreement to Collaborate Against Worker Misclassification

January 3, 2023

On December 14, 2022, the Internal Revenue Service (IRS) and the U.S. Department of Labor (DOL) announced that they are renewing a memorandum of understanding (MOU), which allows the two agencies to collaborate in their efforts to address employee misclassification. The goal of the MOU is to streamline investigations into businesses that misclassify their employees…

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IRS Raises Interest Rates for First Quarter of 2023

December 29, 2022

Interest rates have been rising across the board, so it should come as no surprise that the IRS is getting in on the action. Starting January 1, 2023, late, partial, or missing tax payments will cost more. On November 29, the IRS announced that rates used to calculate interest on underpayments (taxes owed but not…

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IRS Reminder: Deferred Social Security Tax Payment Due by End of 2022

December 16, 2022

If you’re an employer or a self-employed individual who opted to defer part of your Social Security taxes for 2020, the IRS would like to remind you that the deadline for your second installment is due soon. Back in 2020, the Coronavirus, Aid, Relief and Economic Security (CARES) Act was passed to help individuals and…

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Applicable Federal Interest Rates for December 2022

November 18, 2022

The IRS recently published its Applicable Federal Rates (AFRs) for December 2022. What is the Applicable Federal Rate (AFR)? The applicable federal rate (AFR) is the minimum interest rate permitted by the Internal Revenue Service (IRS) on private loans, including loans between family members. Generally, they are significantly lower than commercial lending rates. If lenders…

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