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Tax Updates: Important Highlights for 2024

Are you up-to-date with the latest tax regulations affecting your business and personal finances? Here’s a concise overview of key updates you need to know, along with insightful cross-references for deeper understanding.

Vehicle Depreciation Limits
Taxpayers utilizing the actual expense method for vehicle deductions must adhere to specific depreciation limits outlined in Rev. Proc. 2024-13 and IRC §280F. Under this method, the cost of the vehicle depreciates over a 5-year recovery period, with allowances for Section 179 deductions. However, deductions are capped at statutory amounts, with special considerations for IRC section 280F property, where limits are increased by $8,000 for the first year.

Tax Treatment of Certain Energy Rebate Programs
Announcement 2024-19 introduces DOE programs incentivizing energy-efficient home improvements. For individual taxpayers, rebates received under these programs are treated as purchase price adjustments, not taxable income. However, business taxpayers receiving rebates directly are subject to taxation, potentially requiring information reporting under IRC section 6041.

High-Income Non-Filers
In an effort to enhance tax compliance, the IRS is targeting high-income taxpayers who have failed to file federal income tax returns. With over 125,000 instances since 2017, the IRS is initiating compliance letters to address this issue. This initiative, funded by the Inflation Reduction Act, aims to ensure fairness and adherence to tax regulations.

Stay informed and compliant with these updates to navigate the evolving tax landscape effectively. For further details and comprehensive guidance, download the attached PDF containing additional insights and references.

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Tax News and Industry Updates

Dear Valued Clients and friends,

We hope this email finds you well. We’re reaching out today with some important updates and information that may impact your tax reporting and filing processes including:

  1. IRS Expands Use of Chatbots
    The Internal Revenue Service (IRS) has recently announced the availability of expanded chatbot technology to provide quick answers to basic questions for individuals who receive notices regarding potential underreporting of taxes. This new chatbot feature aims to assist taxpayers who receive notices CP2000, CP2501, and CP3219A. These notices typically alert taxpayers if the tax information provided to the IRS from third parties does not match the information they’ve provided themselves. For more details, you can refer to IR-2023-178.
  2. 1099-K Reporting Requirements Delayed
    There’s been a delay in the reporting requirements for Form 1099-K, which is used by third party settlement organizations (TPSOs) to report payments made in settlement of certain reportable transactions. While TPSOs are still required to file this information return annually, the deadline for compliance has been pushed back. You can find additional information in Notice 2023-74.
  3. E-Filing Now Required for 10 or More Information Returns
    Businesses that file 10 or more information returns are now required to e-file with the IRS, starting from the 2023 tax year. This marks a significant change from previous years when the e-filing threshold was set at 250 or more information returns. The new threshold of 10 returns applies to the combined total of all information returns filed by a business. For further guidance on e-filing forms 1099, please visit the IRS website at [insert link].

We understand that staying compliant with tax regulations can be complex, and we’re here to support you every step of the way. If you have any questions or need assistance navigating these updates, please don’t hesitate to reach out to us. Our team is dedicated to ensuring that your tax reporting processes run smoothly and efficiently.

Thank you for choosing [Your Company Name] as your trusted partner in financial matters.

Warm regards,

The Nash Group PS 
Certified Public Accountants

 

Tax News and Industry Updates

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Newsletter – June 2023 Tax Updates

Hi,

We enjoyed a successful tax season and while the busy time is over for us, we would like to take a moment to remind you to contact us any time throughout the year with any tax concerns.

As unpleasant a thought as taxes may be, many of those seemingly innocent decisions we make during the year have a major and often negative impact on our tax returns. Considerations like:
• Selling stock or property
• Tax implications of withdrawing an IRA, profit-sharing plan or other retirement plans
• Gifts of money or property to children (or others!)

If you have ever been dealt a blow at tax time, you will appreciate the importance of year-round service. We are available year-round for tax consulting and advising, as well as for any tax planning you may need.

We would be glad to meet with you to talk about your particular tax situation and advise you of any pending tax consequences. Feel free to call and set up an appointment.

We have attached some literature you may find interesting; share it with your friends and neighbors. We would appreciate your personal recommendation whenever possible.

This issue features:
• Clean Vehicle Credits Fact Sheet
• List of Manufacturers of Qualified Clean Vehicles
• IRS Extends Lookback Period for Refund Claims
• Accountable Plan or Unreimbursed Business Expenses
• New Industry Tip Reporting Program
• FBAR Penalty

If you still need to file your tax return, please gather your information as soon as possible so that you can miss the crunch in the Fall.

Have a healthy and exciting summer!

Download Tax News and Industry Updates