Tax Day has come and gone, with the IRS reporting a slight increase in the number of tax returns received this year compared to last year. However, the number of refunds issued has decreased, which may be attributed to changes in tax rules and confusion over the revamped W-4 form. Taxpayers who missed the deadline can still file their returns, with penalties based on time. Those who owe taxes are encouraged to pay as soon as possible to avoid further penalties and interest. Meanwhile, some taxpayers may still be waiting for their Employee Retention Credit refunds, and businesses are reminded to keep accurate payroll records to avoid being labeled as “ghost employers.”
The IRS Commissioner has called this tax season one of the best in years, attributing improvements to increased funding from the Inflation Reduction Act. While taxpayer services have improved, the IRS acknowledges that more needs to be done to serve taxpayers effectively. Questions from taxpayers highlight concerns about tax implications for IRA withdrawals, with options limited once taxes have been triggered by a withdrawal. However, installment agreements are available to help spread out tax payments over time.
Taxpayers inheriting IRAs have some flexibility in withdrawing funds thanks to relief extended by the IRS through 2024. Retirement tax planning remains a priority for many Americans, with concerns about potential tax increases on future distributions. The AICPA has expressed support for legislation addressing disaster-related tax issues and has requested clarification on tax-exempt organization forms from the IRS. Important dates for taxfilers are approaching, including the deadline for claiming refunds for tax year 2020. Forbes has also released its list of America’s top CPAs and other industry news.
Finally, the team at Forbes shares their scariest movie experiences, with the topic of ghost employers tying into the tax issue examined this week. The newsletter closes with a trivia question about a tax-related change to the definition of listed property, with the answer revealing that cell phones were once considered listed property for tax purposes. Overall, the newsletter covers a range of tax-related topics and updates for taxpayers and professionals to stay informed.
