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The IRS today begins accepting tax returns, and anticipates receiving over 146m by its April 15th deadline. The agency is using some of its extra funding from the Inflation Reduction Act to extend the hours of service at nearly 250 of its in-person Taxpayer Assistance Centers around the country.  It's also working to continue improvements to its phone service as well as online tools like "Where's My Refund?" where the website will provide more details for taxpayers checking on the status of their tax refund. "The start of a tax season is an important day for the nation and for the IRS," said IRS Commissioner Danny Werfel on Friday. "Behind the scenes at the IRS, we've been working for months to be ready to help taxpayers and make the process of filing taxes as easy and smooth as possible. It takes many long months of planning and preparing as well as programming and testing to get to the opening of filing season. This is a big job, but it's a critical one for the nation. Tax season is a unique right of citizenship." 

 

CNN	Accounting Today

Businesses are likely to see more sales tax audits in 2024 as a result of changes happening across the states, according to a new report by tax compliance technology provider Avalara. The study highlights the impact of new technology developments and e-invoicing mandates on tax laws. The Streamlined Sales and Use Tax Governing Board is encouraging states to simplify economic nexus laws, potentially leading to more audits. The report also predicts increased audits from the federal government due to additional IRS funding. Economic pressures and evolving tax policies are driving the need for audits. Retailers should prepare for greater complexity in tax compliance requirements. Electronic invoicing can help streamline tax reporting and collections. Businesses are urged to understand and plan for country-specific e-invoicing mandates.

 

Accounting Today

Sports teams and their owners are being targeted by a new IRS campaign, as the agency ramps up its efforts to audit partnerships using an infusion of funds from the 2022 tax-and-climate law. The IRS Large Business and International division recently announced the campaign, saying it plans to look into whether the income and deductions of sports-related partnerships with large losses are reported in compliance with the tax code. The agency hasn't named specific teams in this latest push on partnership audits.

 

Bloomberg Tax

Arizona Attorney General Kris Mayes is objecting to a determination from the Internal Revenue Service that rebates the state sent to Arizona residents in 2023 will be subject to federal taxation. Mayes called the determination "inequitable and arbitrary" and criticized the lack of written guidance from the IRS. Taxpayers are currently preparing their 2023 tax returns and need clarity on whether the rebates are taxable.

 

Bloomberg Tax

Beneficial Owner Information Reporting is Now Live in the U.S.

Effective January 1, 2024, FinCEN has begun accepting Beneficial Ownership Information (BOI) Reports, as required under the Corporate Transparency Act (CTA), posing a new compliance challenge for tax and accounting professionals.

FileForms, a secure BOI filing platform, offers partnership solutions to ensure your clients compliance with CTA. Professionals seeking an in-house revenue stream from BOI reporting can utilize FileForms' proprietary workflow solution, while those concerned with compliance risks can simply refer clients to FileForms self-service platform and earn passive commissions.

Join our webinar to explore how FileForms can assist in navigating these new requirements and turn a potential compliance nightmare into a revenue opportunity. Reserve your spot now!

Free Webinar: Navigating BOI Reporting - Thursday, February 22, 2024 | 11 AM ET

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H&R Block has announced that Curtis Campbell will join the company as its new president, global consumer tax and its chief product officer following the current tax season. As a member of the senior leadership team, Campbell will be instrumental in driving H&R Block's ambitions for its customers, communities, and team while delivering growth and profitability for the consumer tax business in the U.S., Canada, and Australia. Most recently, he served as president and chief executive of TaxAct, where, during his five-year tenure, he led the company through a dramatic transformation and double-digit revenue growth.

 

Global Newswire

Pending U.S. home sales shot up in December by the most since June 2020, according to the National Association of Realtors (NAR), as home buyers benefited from softer mortgage rates. The group's Pending Home Sales index rose 8.3% to 77.3, rebounding from a downwardly revised record-low of 71.4 in November. A poll by Reuters showed economists expected a 1.5% increase. On a year-over-year basis, pending home sales have risen 1.3%. The stronger buying activity was driven by gains in the Midwest, South and West, while the Northeast declined compared to the prior year.  “The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices,” said NAR chief economist Lawrence Yun. “Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand." Mortgage rates neared 8% in October, a two-decade high, but have eased after the Federal Reserve left its policy benchmark rate unchanged since July. For the week ended January 25th, mortgage rates edged up to 6.69% but remained stabilized in the mid-six percent range, according to Freddie Mac.

 

Market Watch

Reuters

Washington Post

One important way that Roth IRAs can help investors save money on taxes is by allowing contributions with after-tax dollars. Unlike traditional IRAs, Roth IRAs offer tax-free withdrawals, maximizing retirees' spending power. Roth IRAs have no withdrawal requirements, providing flexibility and estate planning benefits. Contributions to Roth IRAs are made with after-tax dollars, and qualified withdrawals, including earnings, are tax-free. According to Kathryn Kubiak-Rizzone, a certified financial planner, Roth IRAs offer the most tax savings when contributing in a lower tax bracket. They can strategically pull money out in ways that make the most tax sense. Roth IRAs have no required minimum distributions (RMDs), allowing for tax-efficient withdrawals. The contribution limits for Roth IRAs are $6,500 for investors under 50 and $7,500 for those 50 and older. Roth IRAs are also beneficial for legacy planning purposes, as they provide tax-free earnings for beneficiaries. With no withdrawal requirements, Roth IRAs offer the freedom to choose when and how to access funds.

 

US News and World Report

The Global Reporting Initiative has published a major update to its biodiversity standard for organizations to disclose their most significant impacts on the number of plant and animal species throughout their operations and supply chain. The new standard, which replaces one that released in 2016, aims to provide transparency across the supply chain. Location-specific reporting on impacts includes countries and jurisdictions, with detailed information on the place and size of operational sites. The updated standard includes new disclosures on the direct drivers of biodiversity loss covering land use, climate change, overexploitation, pollution and invasive species. It also includes requirements for reporting impacts on society, including those on communities and indigenous peoples. The new standard will formally take effect for reporting on January 1st 2026. 

 

Accounting Today