IRS Recommends Taxpayers Wait Before Filing Returns Due to Refund Confusion

IRS Recommends Taxpayers Wait Before Filing Returns Due to Refund Confusion

The Internal Revenue Service has advised millions of taxpayers who have benefited from state rebate and refund payment programs to currently hold off from filing their income tax return while the agency decides on how to treat such receipts.

“There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week. For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional,” the agency said in a statement on Feb. 3.

 

IRS issued an alert to tax payer to adjust 2023 withholding

IRS issued an alert to tax payer to adjust 2023 withholding

IRS starts accepting 2022 taxes starting from today Jan 23, 2023. At the same time, IRS is reminding tax payers to revisit their withholding from their paycheck towards 2023 taxes. If you are not withholding enough taxes, you are at the risk of paying penalties when you file 2023 taxes. If you are withholding more than what your obligation is, you are effectively giving the government an interest-free loan.

There are resources for you to determine the close to the right amount of taxes you will owe to the IRS.

Tax Withholding Estimator, this tool calculates the taxes owed based on the tax codes for 2023 and help taxpayers determine if they have to make any adjustments to their withholding in order to avoid owing taxes and potentially end up paying penalties for insufficient withholding when they file taxes the following year.

 

How Looming Recession May Affect Tax Collections

How Looming Recession May Affect Tax Collections

The Fed is raising rates. Prices for food and fuel are skyrocketing. Signs are pointing to a recession on the horizon. And as we near the end of 2022, tax time—that time of year everyone looks forward to (sarcasm)—is also on the horizon.

As a business leader, it’s important to be proactive and recognize your limitations. Don’t try to fool the IRS and cut corners because it never turns out well.. Scott Curley, o-CEO of FinishLine Tax Solutions outlines how a recession would impact taxpayers and how the IRS will be responding to them.

Why Small Businesses Fall Victim to the Payroll Tax Trap

Why Small Businesses Fall Victim to the Payroll Tax Trap

It’s tough running a small business, and Covid-19 has only made it harder. After losing customers and struggling to survive, it’s understandable that some would be looking anywhere and everywhere for a little extra cash.

Business owners who fail to remit payroll taxes to the IRS on time and in full are vulnerable to harsh penalties. Scott Curley, o-CEO of FinishLine Tax Solutions looks at the dangers of borrowing from payroll funds and how small businesses can avoid the trap.

Should we file taxes jointly or separately? A guide for couples who said ‘I do’ in 2022

In order to file a joint tax return in 2023, you have to have been legally married by Dec. 31, 2022. So as long as you got your marriage license in 2022, you’re considered married in the eyes of the IRS.

But if you got divorced or legally separated from your spouse at any point during 2022, you’re considered unmarried for the entirety of the year and cannot file a joint return.

“The system does not distinguish between parties if they file jointly,” says Curley of FinishLine. But if you file separately you won’t be liable for your spouse’s tax burden. 

Curley says “dozens” of his clients over the years ran into this issue because one spouse wasn’t transparent with the other about how much money they owe the IRS.

He recommends bringing this up with your partner before you tie the knot.