Tax News
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IRS Delays 2023 Form 1099-K Threshold, Introduces $5,000 for 2024
In a recent announcement, the Internal Revenue Service (IRS) has decided to delay the implementation of the new $600 Form 1099-K reporting threshold for third-party payment organizations. The decision to treat 2023 as a transition year comes in response to feedback from taxpayers, tax professionals, and payment processors. The IRS is also planning a phased-in…
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Time Running Out to File for Recovery Rebate Credit
The window for claiming a pandemic-driven tax credit is still open to taxpayers who didn’t take advantage of it during the main Covid outbreak. But closing dates are approaching, making filing a claim for eligible taxpayers (tax years 2020 or 2021) a priority for tax preparers. For a historical background, we have to go back…
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Understanding the New IRS E-Filing Requirements for Forms W-2
As we prepare for the 2024 tax season, the IRS is also updating regulations for tax forms and filing requirements. One such regulation establishes a new threshold for electronic filing of certain returns. This change has implications for employers and taxpayers alike, as it affects the way tax-related information is submitted to the IRS. In…
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IRS Updates Clean Vehicle Credit Guidance
As electric cars become more common on American roads, fully electric autos (termed “clean vehicles” by the Internal Revenue Service) are now showing up in the used car markets. Owners of new electric vehicles are already able to claim the Clean Vehicle Credit for 2023, but starting in 2024, a credit will also be offered…
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IRS Imposes Moratorium on Improper Employee Retention Credit Claims Amid Rising Fraud Concerns
As of last week, the Internal Revenue Service (IRS) has taken decisive action to address concerns regarding the improper filing of Employee Retention Credit (ERC) claims, announcing a moratorium on new claims through at least the end of the year. This decision is aimed at protecting unsuspecting tax businesses from falling prey to scams that…
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IRS Shifting Audit Focus Toward More High-Income Taxpayers
The Internal Revenue Service says it’s about to move its main audit spotlight from the everyday working-class individual taxpayer to those engaged in high-income activities. Now on the audit radar: high-income earners, partnerships and large corporations, and promoters pushing schemes that abuse the tax laws. This turn of focus comes after a comprehensive review of…
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Contactless Tax Preparation – Here to Stay
By Matt Jagst, Drake Software Head of Product For many tax and accounting firms, methods of client interaction changed dramatically in the spring of 2020. Firms accustomed to having their clients visit the office to serve them face-to-face had to switch to a completely contactless and often remote working environment. This shift has become…
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Form 8300 to Shift to Electronic Filing Platform
The push toward an all-electronic filing future continues at the IRS. The agency’s latest move has Form 8300, Report of Cash Payments Over $10,000, e-filed starting in 2024, in an effort to avoid backlogs that the old paper forms presented while speeding up processing times. The shift is included in final regulations amending e-filing rules…
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Hawaii Wildfire Victims Get Tax Relief from IRS
As recovery efforts are underway for victims of the devastating wildfires in Hawaii, the Internal Revenue Service is moving to give survivors one less thing to worry about. The agency has launched its tax relief package for victims in Maui and Hawaii counties that basically delays an array of federal individual and business tax deadlines…
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Drake Software Hits the Road This Summer: Join Us at IRS Tax Forums and Trade shows!
Summer events for the tax industry are in full swing as professionals from around the country gather to share resources, insight, software, and tools for the 2024 filing season. The Drake Software team has enjoyed the time on the road and the opportunities to meet users, demonstrate our tax prep solutions, and share industry expertise.…