New York State recently announced a useful change to the pass-through entity tax (PTET) for entities that elect to be subject to both the New York State PTET and the New York City PTET. If an entity has an overpayment of the New York State PTET, that overpayment will now be credited to a balance due for the New York City PTET, and vice-versa. Any net overpayment that exceeds the combined amoun...
The New York State 2023-2024 budget legislation enacted earlier this year increased the rate of tax for the metropolitan commuter transportation mobility tax (MCTMT) for those with self-employment income that is attributable to the five boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens and Staten Island). The tax applies to net self-employment earnings if such earnings exceed $50,0...
As discussed on page 44 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book, practitioners must annually certify that they have a written information security plan for protecting client data when they renew their Practitioner Tax Identification Number (PTIN) each year. The IRS has updated its Publication 5708, Creating a Written Information Security Plan for your Tax &...
The IRS recently issued Notice 2023-54, which provides two separate types of relief related to certain required minimum distributions (RMDs). The two areas are unrelated to each other. IRA Owners Born in 1951 For the first area of relief, the notice provides relief for IRA owners who were born in 1951. Such individuals reach age 72 during 2023, and they would have been required to start tak...
As discussed in our posts during June 2023, the threshold for the e-file mandate for Forms W2 and 1099s has been reduced to 10 returns (from the previous threshold of 250 returns) effective for the 2023 tax year and subsequent years. Practitioners may need to update their registration to e-file Forms W2, through the Business Services Online (BSO) system with the Social Security Administration....
As discussed in our posts on June 1, 2023 and June 13, 2023, the threshold for the e-file mandate for Forms W2 and 1099 has been lowered to 10, effective for forms to be filed for the 2023 tax year, beginning on or after January 1, 2024. At the same time, the IRS has added a new system as an option to be used to e-file Forms 1099, while still offering the system that was already in place. Y...
As discussed in our post on June 1, 2023, the threshold for the e-file mandate for Forms W2 and 1099s has been reduced to 10 returns (from the previous threshold of 250 returns) effective for the 2023 tax year and subsequent years. Practitioners who have already registered to e-file Forms 1099 may need to update their registration with the IRS, as discussed below. Practitioners who are not ye...
The Treasury Department has issued final regulations (Treasury Decision 9972) regarding the lower threshold for the e-file mandate for Forms W2 and 1099s. The lower threshold of 10 returns is now effective for the 2023 tax year. This is a significant reduction from the threshold of 250 that has applied for earlier tax years. This lower threshold was originally scheduled to become effective in ...
Estimated tax payments for the New York Pass-Through Entity Tax (PTET) are next due on June 15, 2023. If your clients have not scheduled the second quarter payments yet, they can do so using their online services account at http://www.tax.ny.gov/online/ Clients can also pre-schedule the payments for the third and fourth quarters as well. Clients who have opted into both the New York State and Ne...
As discussed in our post on September 8, 2022, effective for forms filed on or after September 19, 2022, exempt organizations that file the CHAR500, Annual Filing for Charitable Organizations, must file the form electronically using the Charities Bureau’s new online web filing system. For a calendar-year organization filing its CHAR500 for the year ended on December 31, 2022, the upcoming due ...
