IRS Announces Interest Rate Increases for the Fourth Quarter of 2022

 

Beginning October 1, 2022, individual taxpayers can expect to see a 1% increase in interest rates for tax over and underpayments (taxes owed that are not fully paid).

This 6% rate is an increase from the previously established 5% (July 1, 2022) and the interest will be compounded daily.  Individuals are not the only taxpayers that will be seeing the hike; corporate taxpayers with an overpayment exceeding $10,000 will be assigned a 3.5% rate, or 5% if the overpayment is below this threshold.   For underpayments on the corporate side, an 8% rate will be assigned.

For more information on the new interest rates for the fourth quarter, please click here.

By |September 28th, 2022|Categories: Announcements, IRS|Comments Off on IRS Announces Interest Rate Increases for the Fourth Quarter of 2022

Biden Administration’s Proposed 2023 Budget Plan Calls for Corporate & High-Net-Worth Individual Tax Hikes

 

The Biden administration’s fiscal year 2023 budget blueprint, released on March 28, consists of a mix of familiar proposals and brand-new initiatives that reflect the President’s policy objectives. The proposals are described in more detail in the General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals, commonly referred to as the “Green Book,” that was released with the budget, and include the President’s now familiar calls for increasing the top corporate tax rate to 28% and the top individual rate to 39.6%.

Among the new proposals, the minimum tax on high-net-worth individuals has garnered considerable press attention.

These proposals, as well as others that have not been closely scrutinized, are described in more detail below.

Corporate Tax Proposals

Raise Corporate Income Tax Rate to 28%

C corporations, unlike an S corporation, the […]

By |August 2nd, 2022|Categories: Announcements, Business Tax, Individual Tax, IRS, Trusts and Estates|Comments Off on Biden Administration’s Proposed 2023 Budget Plan Calls for Corporate & High-Net-Worth Individual Tax Hikes

CalSavers Retirement Savings Program Final Registration Deadline is June 30, 2022

 

The CalSavers Retirement Savings Program is a by-product of state-mandated retirement legislation that was launched in July 2019 as part of a phased rollout over three years with the goal of improving the financial security of Californians working in the private sector. It is sponsored by the State of California, facilitated by businesses, and funded by employee savings.

This rollout phase applies to employers with 5 or more employees who do not offer a retirement savings plan, self-employed individuals, and others who want to save extra. Savers participate by contributing to a Roth Individual Retirement Account (IRA) that belongs to them via payroll deductions on a post-tax basis. An option is also available for CalSavers participants who want to recharacterize their account to a traditional IRA where contributions are made on […]

By |June 16th, 2022|Categories: Announcements, Retirement Planning|Comments Off on CalSavers Retirement Savings Program Final Registration Deadline is June 30, 2022

IRS Increases Mileage Rate for Remainder of 2022

The high cost of gasoline has prompted the IRS to make a mid-year adjustment to the standard mileage rate for business travel effective July 1, 2022.  The norm has always been to make this adjustment annually.  The last time the agency made a mid-year adjustment to the rate was in 2011. The new rate will be 62.5 cents per mile, an increase of 4 cents from the prior amount.  For more information please click here.

By |June 15th, 2022|Categories: Announcements, IRS|Comments Off on IRS Increases Mileage Rate for Remainder of 2022

September is National Preparedness Month!

September is National Preparedness Month.  Unfortunately with hurricane season here and the ongoing threat of wildfires in some parts of the country, it is important for us to remind our clients to prepare for natural disasters and have an emergency plan in place.

All taxpayers, from individuals to organizations and businesses, should take time now to create or update their emergency plans.  This plan should include securing and duplicating essential tax and financial documents, creating lists of property, and knowing where to find information once a disaster has occurred.

Be Secure

It is best if you keep critical original documents inside waterproof containers and in a secure place.  Documents such as tax returns, birth certificates, deeds, titles, and insurance policies should also be duplicated and kept with a trusted person outside the area […]

By |September 3rd, 2021|Categories: Announcements, BCo Community News|Comments Off on September is National Preparedness Month!
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