NewGen Tax Law

12/28/2022

Good news for those who have been using third party payment systems. The IRS has postponed the implementation of the 1099-K requirement for the $600 threshold. The law is scheduled to start on 1/31/2024. This is because there was too much confusion regarding the implementation of the law. Taxpayers didn't know what to report, and third party settlement organizations didn't have the ability to comply.

IR-2022-226, December 23, 2022 — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season.

12/14/2022

With the upcoming tax season, we'll all be busy preparing and filing returns. However, it is important to keep in mind that the IRS is stepping up audits and exams for taxpayers who have erroneously claimed unqualified credits (e.g., ERC, sick and family leave, and third party payments valued over $600). Those who took the credits and did not qualify will likely end up owing the difference plus penalties and interest.

Additionally, it is estimated that many self-employed and small businesses will get audited for the third party payments (1099-K) over $600 for this coming tax season. Please be vigilant in reviewing all your income and report it accurately. You do not want the headache of an audit/exam in the foreseeable future.

ERC qualifications - https://www.irs.gov/newsroom/employee-retention-credit-2020-vs-2021-comparison-chart
Sick and Family Leave qualifications - https://www.irs.gov/newsroom/paid-sick-and-family-leave-credit-2020-vs-2021-comparison-chart

A chart to compare the Employee Retention Credit - 2020 vs 2021

12/02/2022

The IRS has increased interest rates from 6% to 7% for the 1st calendar quarter of 2023. These apply to underpayments and overpayments. If you owe the IRS and can make your payments, do it sooner rather than later. Those compounded interest rates can add up.

10/25/2022

We try to support the local community in any way we can. This year, we’re thrilled to be one of the sponsors for the Jacksonville Greek Festival.

09/29/2022

I hope that everyone in Florida has fared well during Hurricane Ian. The IRS has just announced that extensions will be granted for affected Floridians. Due dates to file personal and business returns, such as your 1040 and others, have been extended to 2/15/2023. Note that tax payments that were due on 4/18/2022 will not be part of this relief. Let me know if there are any questions.

IR-2022-168, September 29, 2022 — Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

09/15/2022

Under the Inflation Reduction Act 2022, the IRS will now research and ultimately implement a free e-file system for taxpayers. Can you imagine a day when you don't have to use third party tax preparation software to file your return and pay more than what it's worth? The IRS is currently allotted somewhere around $15M to research this new system and put it into place.

Let's hope that this comes sooner rather than later, because I know taxpayers would love to use this system rather than corporations to prepare their own returns.