Tax Update – June 2023 Taxpayer Experience Office Update The Office is comprised of 100 employees who run four operating branches: Community engagement: the ability to understand and get issues resolved Insights/analytics: the use of “big data” Multi-channel experience: surveys, focus groups, outreach, and other media Portfolio management: keeping track of all goings-on within the Office The desire is for the IRS to provide world-class levels of service and communications; ... Read More

Tax Update – April 2023 Inherited Individual Retirement Accounts (IRAs) There are some notable, but mostly beneficial, rule changes related to IRAs and RMDs . Beginning in 2023, the SECURE 2.0 Act raised the required age that you must begin taking RMDs, to 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025. If you reach age 73 in 2023, you were 72 in 2022 and therefore subject to the age 72 RMD rule in effect for 2022. If you reached ... Read More

Tax Update – March 2023 Tax Year Progress From the IRS’s perspective, there is NO March Madness. They have cleared the carryover backlog for original return processing. The average answer time and level of service have vastly improved to over 80% level of service. Taxpayers are able to respond to notices online and the IRS has been receiving them. Online payment plans have been successful with over 11K agreements secured in the first month. New Voice Bots are rolling out in ... Read More

Tax Update – February 2023 Filing Season Update, At a Glance Filing season is going well; there is only a small amount of carryover from last year, which was expected to be finalized at the end of January. There are over eight million refunds averaging $1,900 each. Refunds are about 10% lower than last year and that trend is expected to continue due to no stimulus payments, Recovery Rebate Credits, Child Tax Credits, and charitable contributions. The IRS hired over 5000 new ... Read More

Tax Update – January 2023 Changes in Tax Law for Current Season (at a glance) Child Tax Credit has been reduced, back down to $2K (from $3K) per child Gift Tax for 2023 increases to $17K Mortgage insurance (on Schedule A) is no longer deductible $300/$600 deduction for charitable contributions (now only on Schedule A) Expect more IRS guidance regarding virtual currency gains and activity 1099-K rules are now in effect – there is a $600 threshold and no transaction limit; ... Read More