All posts by: KWBerkower

The Inflation Reduction Act increased the tax credit cap from $250,000 to $500,000 beginning in 2023. The credit is elected on the 2023 tax return to offset eligible research and development expenses as a payroll tax offset for the first quarter payroll in 2024 with any excess carried to subsequent payroll quarters. The research and […]

To modernize and clarify foreign tax credits, the IRS issued lengthy and imitating final regulations that changes the type of taxes applicable for the foreign tax credit. Some key areas of note are highlighted below: To qualify as a foreign income tax, there are now four components: Realization Gross receipts Net income Attribution based on […]

The Internal Revenue Service recently updated its FBAR Reference Guide wherein some clarifications were provided: A US person is not just an individual. It includes corporations, partnerships, limited liability companies and estates. A financial account includes checking and savings accounts, securities accounts, commodity futures or option accounts, mutual or pooled funds, and more. Cryptocurrency reporting […]

April 1, 2022 is the last day for taxpayers who turned 72 in 2021 to begin taking required minimum distributions (RMD) from a retirement account or plan. RMD rules apply to traditional SEP and SIMPLE IRAs, 401(k), 403(b) and 457(b) but not Roth IRA and only after you stopped working.

The American Rescue Plan Act that passed in March 2021, lowered the reporting threshold for Form 1099K for third-party settlement organizations (TPSOs) for transactions settled after 12/31/2021.

In 2011, the U.S. introduced an international asset reporting Form 8938 to ensure that US taxpayers located anywhere would report their foreign assets, accounts, investments, and income.

New Cryptocurrency Tax Reporting Requirements Effective after December 31, 2023 The recently passed Infrastructure Act includes two amendments to the Internal Revenue Code that will make it easier for the IRS to identify and attribute cryptocurrency transactions to taxpayers.  First, the definition of a broker that is required to file information returns is expanded now […]

In recent meetings of the G7, G20 and concurred by all 139 members of the Organization for Economic Co-operation and Development (OECD) were endorsements of the key elements of Pillar One and Pillar Two. What is Pillar One and Pillar Two? The OECD sought to address worldwide fundamental taxation issues and issued this framework.  Pillar […]

New Cryptocurrency Tax Reporting Requirements Effective after December 31, 2023 The recently passed Infrastructure Act includes two amendments to the Internal Revenue Code that will make it easier for the IRS to identify and attribute cryptocurrency transactions to taxpayers.  First, the definition of a broker that is required to file information returns is expanded now […]

The Infrastructure Act terminated the Employee Retention Credit retroactive to October 1 instead of at the 2021 year-end.