Winter Accounting, LLC

09/06/2023

Some great changes are coming from the IRS starting with the 2024 income tax filing season (so in early 2025) - the IRS is promising that "Taxpayers will be able to digitally submit all correspondence, non-tax forms, and responses to notices; as a result, the IRS estimates more than 94% of individual taxpayers will no longer ever need to send mail to the IRS." Taxpayers will also finally be able to e-file amendments to forms 940 and 941 - a change that has been LONG overdue. By the 2025 filing season (or 2026), the IRS hopes to make most forms available in "digital, mobile friendly formats." They also hope to digitalize historical documents and paper return processing - hoping to speed up turnaround times for paper filed returns. This will also allow telephone operators to be able to actually answer a taxpayer's question when they mailed in a form (currently they a lot of times do not have access to the information if it was not e-filed.)

Source: The Tax Book News Release Date 8/14/23 "Paperless Correspondence and Paperless Tax Return Processing" Cross Reference FS-2023-18, August 8, 2023.

08/16/2023

MN One-Time Rebate payments will start going out to taxpayers this week (August 14-18) - those that had direct deposit information on their 2021 taxes or updated their bank account information should see deposits as early as this week. Those that did not provide direct deposit information should start receiving checks in the mail in 2-3 weeks.

This payment has no way to be tracked as of now.

08/11/2023

Some of what I believe to be the most interesting Bills currently proposed in Congress (not law - just being proposed):

"Fair Access for Individuals to Receive Leave Act" - if a married couple works at the same company - both would be required to receive the 12 week FMLA.

"Election Worker Tax Benefits Act" - making election worker pay non-taxable.

"Promotion and Expansion of Private Employee Ownership Act" - S Corporation owners would be encouraged through tax benefits to sell their stocks to employees - hoping to increase employee ownership in small businesses.

"Oppose Limitless Inequality Growth and reverse Community Harms Act" - wealth tax based on a taxpayer's net assets (not income) to those with the "greater of $50 million or 1000 times the median household wealth as determined annually."

"End Employer Collusion Act" - this would stop employers from being able to make agreements between each other regarding stealing employees from each other and also bar employers from making employment contracts that restrict the future employment of employees.

See the article for the full list:

Several pieces of proposed legislation introduced in the 118th Congress' first session could significantly alter the American payroll landscape.

08/09/2023

Per a recent IRS Revenue Ruling (Rev. Rul 2023-74, 2023-33 IRB) - when a cash-basis taxpayer (which most taxpayers are) receives additional cryptocurrency as a reward for staking cryptocurrency, that reward becomes taxable at the point in time the taxpayer has dominion and control over that reward. See the article for more details:

The IRS has issued a revenue ruling on when cryptocurrency staking rewards are income and in what year the income …

08/09/2023

The IRS released a new FAQ webpage regarding Employee Retention Credit (ERC) eligibility to help taxpayers know whether or not they actually qualify for the credit and to help combat the current, rampant fraud and error regarding this credit. If you are contacted by a company that claims you are eligible - take the time to read through these FAQs to see if you do. If you are still unsure - be certain to ask a trusted and/or recommended professional!

These FAQs provide general information about eligibility, claiming the credit, scams and more guidance about the Employee Retention Credit.

08/09/2023

The current administration has continued to engage with the Organization for Economic Cooperation and Development (OECD) global minimum tax even though the agenda of this organization has been proven to no longer be in the best interest of the United States and would actually hinder the US in favor of foreign countries regarding tax law. See the full article for more details:

During a House Ways and Means Tax Subcommittee hearing July 19, a panel of international tax lawyers and global experts took issue with President Biden's plans to engage with the Organization for Economic Co-operation and Development's (OECD) global minimum tax, or Pillar Two, which calls for a mini...

08/09/2023

The IRS commissioner announced recently that unannounced visits will become a thing of the past (with a few limited exceptions). This change is to help taxpayers know that the person at their door is most likely NOT a real IRS agent since they are stopping this type of collection process in MOST instances, effective immediately. Instead of visiting without prior notice - taxpayers will now receive a "725-B appointment letter to schedule a meeting."

From now on, if someone comes to your home or place of business, they will highly unlikely be an IRS revenue officer, according to the IRS commissioner, who announced a major change to decades-old compliance enforcement practices.

07/10/2023

Update to the MN Rebate payment:

If you meet the eligibility requirements and your banking or address has changed since filing your 2021 income tax return - then you need to update your information with MN by 5 PM CST 7/28/2023 at this link: https://taxrebate.mn.gov/submit

Those whose information has not changed do not need to do anything at this time. The estimated payment date is still sometime late in the fall of 2023.

2021 Tax Rebate – Update Address or Bank InformationThis is not an application to receive the rebateComplete this form only if you’re eligible for the one-time tax rebate and your address or bank information have changed since filing your 2021 income tax return or property tax refund. This form ...

07/07/2023

On May 25, 2023, the IRS released the Tax Tip that stated they plan to roll out a Business Online Account for business owners to check their information and make payments. It also mentions that the IRS plans to have a mobile-friendly method of submitting forms 940, 941, and 944 soon! See the link to the tax tip for more information.

Tax Tip 2023-72, May 25, 2023 — Good news for small business owners — improvements to IRS phone service and online options are coming as a result of the Inflation Reduction Act. These customer service upgrades will make it easier and more convenient to file online and respond to notices.

06/30/2023

The IRS is planning to role out a "direct file" option for the 2024 filing season (taxpayers can decide to use it if they want to by opting in - as this would be a trial run year). The decision to do so comes as other for-profit companies have, in the past, taken advantage of taxpayers and made them pay for a service that should have been free to them (if they qualify) - essentially an additional tax on taxpayers.

See the full article for more details:

A group of 99 Democratic lawmakers expressed their support of an in-development pilot program at the IRS to allow taxpayers to file their returns directly with the agency without the need of third-party preparation software.

06/26/2023

What is foreign reporting and why is it important to do it (even if you are unsure if you are required to do so)? Monica Toth was just rejected to have her case reheard by the Supreme Court. She is in 82-year-old woman who is originally from Germany, moved to Argentina, and then settled in the US. She held that she did not intentionally avoid filing the required foreign reporting rules regarding her inherited foreign account. Despite her claims, the IRS did not believe her and deemed the non-filing a willful omission and was, therefore, assessed a penalty of HALF THE BALANCE of the 4.2 Million dollar account PLUS interest and late fees.

This is not something to mess around with!

See the article for the full story:

The Supreme Court declined again to take up a grandmother’s challenge of a $2 million penalty assessed by the IRS for a willful failure to not report a Swiss bank account on the grounds of excessive fines under the Eighth Amendment, despite pushback from one dissenting justice.

06/26/2023

Recent MN legislation increased the amount of refunds given to those who qualified for a Property tax or Renters' Property Tax Refund for 2022. The income requirements to qualify did NOT change, however. If you already filed for a property tax refund (Form M1PR) - your refund may end be higher than on your filed return. You need not do anything to receive the increased amount. If you have not yet filed your return, you have until August 15, 2024 to do so.