New Jersey Announces Sales Tax HolidayJune 24, 2024

By David Engel CPA The New Jersey Division of Taxation is advising taxpayers of an upcoming sales tax holiday for certain retail sales of computers, school supplies or recreational equipment when sold to an individual purchaser for non-business use. ( Sales Tax Holiday for Certain Retail Sales, N.J. Div. of Taxation, 06/18/2024 .) This holiday …
IRS – 1099K OVERVIEW 2023 Rule DelayDecember 22, 2023

Initially for the 2023 year, Forms 1099K that are issued by Third Party Settlement Organizations (ex. Credit card companies) and online sellers were supposed to issue a Form 1099K for transactions over $600. That has been delayed by the IRS and will not occur. Instead, the current rules will apply, that is, taxpayers who receive …
IRS Online Business Account Access Expanded to Partners, ShareholdersDecember 21, 2023

The IRS announced additional features to its online self-service tools for Business Tax Accounts, now expanding access to individual partners of partnerships or shareholders of S corporation businesses. ( IR 2023-243 ; 12/18/2023) Partners and shareholders can access online account information after filing a business return with a completed Schedule K-1. An IRS news release …
IRS Announces Pandemic-Related Penalty ReliefDecember 21, 2023

The IRS announced on Tuesday new penalty relief for approximately 4.7 million individuals, businesses, and tax-exempt organizations that were not sent automated collection reminder notices during the COVID pandemic. (IR 2023-244; Notice 2024-7, 2024-2 IRB; Fact Sheet 2023-28) The IRS will be providing about $1B in penalty relief. Most of those receiving the penalty relief …
Werfel Stops New Employee Retention Credit Processing Amid Surge of Questionable ClaimsSeptember 15, 2023

The IRS has announced an immediate moratorium on processing new Employee Retention Credit (ERC) claims through at least the end of the year. This decision comes amid rising concerns about a flood of improper claims, putting honest small business owners at financial risk from scams. (IR 2023-169, 9/14/2023) IRS Commissioner Danny Werfel ordered the immediate …
New Digital Asset Regs a ‘Huge Milestone,’ Crypto Tax Expert SaysSeptember 11, 2023

By Tim Shaw Long-awaited proposed regs clarifying information reporting and basis determination rules for digital asset transactions under the Infrastructure Investment and Jobs Act are a step in the right direction and demonstrate Treasury’s commitment to understanding the crypto ecosystem, according to a former senior IRS official. Enacted almost two years ago in November 2021, …
Clean Vehicle CreditsSeptember 5, 2023

Taxpayers are cautioned to be aware of changes made by Inflation Reduction Act ’22 when considering the purchase of a new or used clean vehicle. The Internal Revenue Service reminded consumers considering an automobile purchase to be sure to understand several recent changes to the new Clean Vehicle Credit for qualified plug-in electric drive vehicles, …
Division of Taxation Mails ANCHOR Benefit Confirmation LettersAugust 17, 2023

The New Jersey Division of Taxation has begun mailing letters to taxpayers who received property tax relief benefits through the ANCHOR program last year will soon receive a letter that confirms their eligibility for the 2020 tax year and notification that they will not need to re-file an application to receive a check or direct …
Key Individual Provisions in SECURE 2.0January 16, 2023

In late December while most practitioners and their clients were busy with other things, Congress was passing a giant omnibus budget bill. Buried within it was the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022 (SECURE 2.0), which contains many retirement (and some other) changes that practitioners and their clients need to …
Child Tax CreditOctober 17, 2022

The New Jersey Division of Taxation has advised that starting with the tax year 2022, eligible New Jersey residents can claim a refundable child tax credit on their New Jersey Resident Income Tax Return (Form NJ-1040). The credit amount can be up to $500 for each dependent child age 5 or younger at year-end that …