The IRS has announced a two-year administrative transition period for catch-up contributions to a qualified retirement plan (including a Section 401(k) plan) by highly compensated employees, permitting them to continue to be made on a pre-tax basis for taxable years beginning before January 1, 2026.
New federal report for many small businesses carries big potential penalties
The Federal government will require a new report for small businesses, called the Beneficial Ownership Information Report under the Corporate Transparency Act, effective January 1, 2024.
New California property tax report required for some short-term real estate rentals starting 2024
California's State Board of Equalization (BOE) considers short-term rentals to be a trade or business, subject to personal property tax. The BOE has approved proposed Form BOE-571-STR to report the information to compute personal property tax, effective January 1, 2024. The 2024 report is due to be filed by May 7, 2024.
Age 72 during 2023? You might get an extra IRA rollover
If you received a scheduled required minimum distribution from an IRA because you reached age 72 this year, the IRS just gave you a "mulligan". (This relief also applies for a surviving spouse.) The IRS has announced you may roll the distribution back to the account no later than September 30, 2023.
Disaster victims should respond to IRS late-filing and late-payment letters
The IRS has updated its instructions to taxpayers, CA-2023-1, to state that taxpayers who receive a late filing or late payment penalty notice when the filing extension applies should call the telephone number on the notice to have the IRS abate the penalty.
NFTs are a No-No for retirement accounts
The purchase of a collectible by a retirement account, including a 401(k), Roth or IRA account, is treated as a distribution, which could be taxable income for the account owner.
Reached age 72 in 2023? No RMD required.
Retirement account owners who reach age 72 during 2023 aren't required to take a minimum distribution from their retirement accounts for this year.
California conforms to federal October 16 due date for disaster areas
Governor Newsom has announced that California is conforming to the federal extension of the due date for certain individual and business income tax returns and tax payments to October 16, 2023.
Penalties still apply for some missed 2021 and 2022 distributions from inherited retirement accounts
The penalty is waived for inherited accounts subject to a new rule in proposed regulations implementing the SECURE Act of 2019.
Federal tax return due date further extended for certain disaster area taxpayers
The IRS announced on February 24, 2023 the filing due date for 2022 federal income tax returns and certain payments of taxpayers in certain disaster areas has been further extended from May 15, 2023 to October 16, 2023. (IR-2023-33.)