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.
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.
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.
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.
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.
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.
Retirement account owners who reach age 72 during 2023 aren't required to take a minimum distribution from their retirement accounts for this year.
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.
The penalty is waived for inherited accounts subject to a new rule in proposed regulations implementing the SECURE Act of 2019.
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.)