In recent months, the Internal Revenue Service (IRS) has issued several key announcements and implemented new policies that businesses and individuals should be aware of. Here are five important developments to monitor:
1. New Guidance on Employee Retention Credit (ERC)
The IRS has issued new guidance on the Employee Retention Credit (ERC), a tax credit designed to encourage businesses to keep employees on their payroll during the COVID-19 pandemic. The new guidance clarifies eligibility requirements, calculation methods, and claiming procedures for the ERC.
2. Update to Form W-4
The IRS has issued a new version of Form W-4, Employee’s Withholding Certificate. The updated form includes several changes to simplify the withholding process and better reflect current tax laws. Employers should be aware of these changes and encourage their employees to complete the new Form W-4.
3. Increased Tax Filing Deadline for 2023
The IRS has announced that the deadline for filing individual income tax returns for the 2023 tax year has been extended to Tuesday, April 18, 2023. This is a change from the previous April 15th deadline.
4. New Mileage Rates for 2023
The IRS has also announced new mileage rates for 2023. The rate for business miles driven has been increased from 56 cents per mile to 65.5 cents per mile. The rate for medical and moving miles driven has been increased from 18 cents per mile to 22 cents per mile.
5. Implementation of New Tax Reporting Rules
The IRS has implemented new tax reporting rules for third-party payment platforms. These rules require payment platforms to report certain transactions to the IRS and provide recipients with tax information. This is intended to improve compliance with tax laws and reduce tax evasion.
These are just a few of the key IRS developments that businesses and individuals should be aware of. By staying informed about these changes, you can ensure that you are meeting your tax obligations and taking advantage of available tax benefits.
Kind regards G. Porter
