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March 07, 2023 | Posted in:

Spring 2023 Tax Deadlines and IRS Updates

Tax Deadlines for Spring 2023

March 15

Client Alert Spring–  Deadline to file partnership and S-Corporation tax returns.

 

April 18

– Deadline to file individual, trust, gift and calendar-year C-Corporation returns.

– Deadline for making 2022 IRA contributions.

– First installment of 2023 individual estimated tax is due.

 

May 15

– Deadline for calendar-year non-profit organizations to file annual reporting returns.

 
Click to view our full Spring 2023 Client Alert Newsletter.
 
 

What the IRS is Up To

Virtual Currency Reporting Now Covers NFTs

The 2022 Form 1040 has a new mandatory question for all taxpayers: At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)? The term “digital assets” has replaced “virtual currencies,” a term used in previous years. Common digital assets include: (1) Convertible virtual currency and cryptocurrency, (2) Stablecoins, and (3) Non-fungible tokens (NFTs). The question must be answered by all taxpayers, not just those who engaged in a transaction involving digital assets.

New Minimum Age for RMDs

As part of the SECURE Act 2.0, the age for required minimum distributions (RMD) increases to age 73 as of 2023. Speak with your financial professional on how this impacts your financial planning.

IRS Postpones the $600 Threshold for 1099-K Forms

In 2021, it was announced that the 1099-K reporting threshold for third-party digital payments would be lowered to $600 for 2022. In late December, the IRS postponed this new lower threshold to now only impact payments made and received after 2022. For tax year 2022, the 1099-K filing requirement is the prior threshold of over 200 transactions and $20,000.

2023 Mileage Rate Update

For 2023, the standard business mileage rate increases by 3 cents to 65.5 cents per mile. The medical and moving mileage rates stay at 22 cents per mile. Charitable mileage rates remain unchanged at 14 cents per mile. These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. Remember to properly document your mileage to receive full credit for your miles driven.

 

 

 

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