We’ve got an early Tax Memo this month to help you head into a restful Labor Day! Here’s your monthly rundown of a few pieces of tax news impacting you, your business, and your clients.
In today’s newsletter:
Gearing up for Fall Deadline & 2024 Filing Season
1099-K Reporting
E-File Mandate
Prep now for a better busy season
Summer is the best time to re-evaluate processes and prepare for the coming fall deadlines and the busy season. Have you:
Followed up with clients on extension and gotten the info to complete these returns?
Met with clients to adjust withholding or quarterly estimates to avoid underpayment penalties?
Prepared amended returns, including those for ERC?
Finished up returns for non-filers?
Addressed IRS Notices?
BONUS: Surveyed staff and clients, identified bottlenecks, assessed pricing and client list, and trained your team to be in a better position for busy season?
1099-K reporting
We’ve all been keeping an eye on how the lowered thresholds for 3rd party transactions would be handled after the passage of the American Rescue Plan Act (ARPA). After delaying the roll-out for 2022, the reduced threshold of $600, down from $20,000, is quickly approaching. Because of the burden this new reporting requirement put on sellers and the IRS to administer, we could see additional guidance or threshold changes before the end of the year.
E-file mandate for information returns
Are you prepared for the e-filing mandate of CY 2023 W-2’s and 1099’s?
Mandate reduces the 250-return threshold enacted in prior regulations to require electronic filing for 10 or more informational returns in a calendar year.
Mandate requires filers to aggregate information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns.
As a reminder, we share these and further actionable updates every month in our franchisee-exclusive tax chats. This month, we talked through technology recommendations for addressing these challenges and additional areas to be aware of for the 2024 tax season! If you’d like to learn more about how you could experience more of the benefits of Padgett, attend an info session.
We have a podcast!
Want more tax updates and accounting insights? Tune in every other week to Federal Tax Updates! Hosts Roger Harris, EA and Annie Schwab, CPA help you keep up-to-date with the latest federal tax information while earning approved CPE and CE credits.
At Padgett, our mission is simple: help business owners focus on their passion by supporting them through the tasks that take time away from doing the work they love. We empower accountants, bookkeepers and tax professionals across the country to run their own firms with freedom and confidence. If you'd like to know more about the benefits of becoming a Padgett firm, contact us today.
