Deferral of Broker Reporting of Digital Asset Sales
The Infrastructure Investment and Jobs Act of 2021 requires brokers to report proceeds from the sale of digital assets (such as Bitcoin and other virtual currencies) on an information return similar to Form 1099-B. This reporting requirement was supposed to take effect on January 1, 2023, and for digital assets acquired on or after January 1, 2023, the report was also required to include the bas...
Delay of 1099K Lower Threshold
On Friday December 23, 2022, the IRS issued Notice 2023-10, which delays the implementation date of the lower filing threshold for Form 1099-K, Payment Card and Third-Party Transactions.
The threshold for filing Form 1099-K for the 2022 tax year was scheduled to be $600 for the year. The IRS has delayed this lower threshold for the 2022 year, so that the prior threshold will continue to apply fo...
Breaking News-NYC PTET Estimated Taxes
New York State has announced that the estimated tax payment system for the New York City pass-through entity tax (PTET) is now open and available for entities to make optional estimated tax payments for the 2022 tax year.
Estimated tax payments are not required for the NYC PTET for the 2022 tax year, but entities may wish to make voluntary estimated payments on or before December 31, 2022 in ord...
2023 Estate Tax Exclusion
The 2023 federal lifetime unified estate and gift tax exclusion is $12,920,000 up from $12,060,000 in 2022.
In addition, the annual federal gift tax exclusion in 2023 is $17,000 per person per year, up from $16,000 in 2022.
The 2023 New York estate tax exclusion is $6,580,000, up from $6,110,000 in 2022. (There is no gift tax in New York State.)
If you have not already enrolled or taken ou...
Corporate Transparency Act
The Corporate Transparency Act requires certain business entities doing business in the United States to report information about their owners to the Financial Crimes Enforcement Network (FinCEN).
FinCEN issued final regulations regarding the requirement in September 2022. See: https://www.fincen.gov/beneficial-ownership-information-reporting.
For entities created on or after January 1, 2024, fi...
IRS Revises Exception for Schedules K-2 and K-3
As discussed on pages 27 through 30 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book, Schedules K-2 and K-3 were introduced by the IRS for the 2021 tax year for entities to report international/foreign tax information to owners. The IRS surprised many by requiring that certain entities file Schedules K-2 and K-3, even though they have no foreign activities.