Although the idea of tax simplification by replacing the income tax with a sales tax seems appealing, the "devil is in the details."
The California Franchise Tax Board, which administers California's individual income tax and corporate franchise tax, has announced it will conform to the federal extension of time to May 15, 2023 for making payments and filing income tax returns that are due during the period January 8 to May 14, 2023.
The filing deadline for federal individual and business income tax returns (including Form 5500) of certain California taxpayers with a due date on or after January 8, 2023 is extended to May 15, 2023.
Here are some highlights of the retirement account provisions of SECURE 2.0 Act of 2022.
The 50% penalty for failure to make a required minimum distributions is waived for failure to make a required minimum distribution from an inherited retirement account for 2021 and 2022 when the account was inherited after 2019 and the participant died on or after the required beginning date.
This cash infusion into the IRS is long past due and I believe most of us (U.S. taxpayers) will benefit from this investment.
Although the provisions are significant, I think you can see these provisions won't have a significant impact on most taxpayers' income tax returns, possibly with the exception of the expanded premium tax credit.
The tax consequences of fraud on the victims are complex and usually aren’t good news.
The IRS is waiving the requirement to include international tax information Schedules K-2 and K-3 for most domestic partnerships and S corporations for tax year 2021 (IR-2022-38, February 16, 2022.)
The passthrough entity tax is a workaround for the $10,000 individual income tax limit on the deduction for state taxes adopted in the Tax Cuts and Jobs Act of 2017. On February 9, 2022, Governor Newsom signed SB 113, which fixes some of the issues with California's passthrough entity tax.