IRS Addresses EV Credit Matters for 2023
The Clean Vehicle Credit can be worth up to $7,500 for qualifying EVs purchased and put into service on or after January 1, 2023. The Inflation Reduction Act of 2022 was designed to make switching to an electric vehicle less of a financial burden. But, there has been significant confusion around some of the requirements in the new Clean Vehicle Credit.
IRS Delays Implementation of $600 reporting threshold for Forms 1099-K
Third-party settlement organizations like Venmo and PayPal will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount that was enacted as part of the American Rescue Plan of 2021.
Department of Justice Pursuing Cryptocurrency Users
According to a recent press release from the Department of Justice (DOJ), a federal court in California issued an order authorizing the IRS to serve a “John Doe summons” on SFOX, a cryptocurrency dealer headquartered in Los Angeles. The order requires SFOX to provide the IRS with data on U.S. taxpayers who conducted at least $20,000 in cryptocurrency transactions between 2016 and 2021 with the company.
The FICA Tip Credit
The FICA Tip Credit provides relief to businesses paying employment taxes on tip income. Calculation of the credit is somewhat complex, requiring employers to determine an amount known as “creditable tips.” The creditable tips figure removes the tip income that covers the difference between the employee’s hourly wage and the minimum wage.
Separation and Divorce Tax Considerations
Taxpayers who are considering or are already in the process of ending their marriage should consider that there are plenty of financial considerations besides a simple separation of assets. Whether legally separating or divorcing, there are several tax implications to consider.