Category: Tax
Compliance risk for people and businesses claiming Employee Retention Tax Credit improperly
The Internal Revenue Service (IRS) has issued a renewed cautionary advisory, urging individuals to thoroughly review the guidelines for the Employee Retention Credit (ERC) before attempting to claim it, as unauthorized promoters persist in encouraging ineligible individuals to file. Reports...
Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024
In December 2022, Congress passed an extensive spending bill that includes the highly anticipated retirement legislation known as SECURE Act 2.0. Among the provisions of SECURE Act 2.0 is the introduction, starting in 2024, of a new option allowing certain...
Reporting delay for thresholds for third party payment platforms
The IRS has announced a delay in the implementation of lower reporting thresholds for third-party settlement organizations (TPSOs), originally set to begin for the 2022 tax year. This means TPSOs are not required to report transactions below $600 on Form...
SafeSend Returns email to “Please update your K1 Recipient Information” is legitimate
ShindelRock clients may have received an email on December 25 related to updating K1 recipient information in SafeSend Returns. These are legitimate emails related to built-in product functionality. This feature is designed to ensure that the K1 recipients’ personal information...
File a Protective Claim with IRS to preserve a possible refund claim
There are situations where a taxpayer may be entitled to a federal tax refund, but the refund is based upon future contingent events that are not determinable at the present time. There are numerous situations where this can occur: There...
IRS tax rules for self-rental properties
When a taxpayer both owns and materially participates in an operating business while also owning the real estate rented to that business, this scenario is defined as "Self-Rental" according to IRC, Section 469. The taxation of self-rental property involves intricate...
Guest Author Robert Steinberg of Blue Chip Partners: What you need to know about capital gains distributions
One of the most significant downsides of investing in mutual funds in non-retirement accounts is that they are required to make annual distributions of virtually all capital gains recognized during that year. This article highlights potential issues and steps that...
IRS offers penalty relief to ERTC claimants
The IRS has recently highlighted penalty relief options for employers related to claims for the Employee Retention Tax Credit (ERTC). A common scenario occurs when additional income tax is owed because the deduction for qualified wages is reduced by a...
Cryptocurrency Tax Losses May Be Subject to a $3,000 Cap
Dramatic losses in digital wallets should be accounted for on tax returns. However, even the IRS appears unsure of how to treat these losses for tax purposes, although they have given some limited guidance on the matter. The standard rule...
Work Opportunity Tax Credit incentivizes businesses to hire targeted groups
The Work Opportunity Tax Credit (WOTC) is a business credit jointly administered by the IRS and the Department of Labor (DOL). Employers can claim the WOTC if they hire individuals certified by a designated local agency as belonging to one...