Newsletters

AICPA Pushes For More Action On Schedules K-2 And K-3 Reporting

The American Institute of CPAs reiterated its call for the Internal Revenue Service to delay the implementation of the Schedules K-2 and K-3 reporting until 2023 and suspend any penalties against partnerships and S corporations for failing to file Schedules K-2 and K-3 for the 2021 tax year.

The call, outlined in a February 24 letter to Lily Batchelder, assistant secretary of tax policy at the Department of the Treasury, and IRS Commissioner Charles Rettig, acknowledges recent revisions the IRS made to the Schedules’ filing instructions, but said they “raise additional questions, perpetuating futility in filing a complete and accurate return and the goal of standardized international reporting.”

The IRS in its revision outlined criteria for partnerships and S corporations to qualify for an exemption from filing the Schedules. However, AICPA contends there is still confusion.

“The 2022 filing season has commenced and the IRS as well as taxpayers are unclear as to who is required to file the Schedules, nor can taxpayers properly file and the IRS process these Schedules,” the letter states. “These threshold issues nearly preclude complete and accurate returns for the 2022 filing season.”

AICPA also said the lack of the ability to electronically file the schedules is another reason for the implementation of the Schedules to be delayed.

“Delay is essential until e-filings can be accepted and uncertainty regarding taxpayer obligation is resolved,” noting that the agency is currently “unable to accept electronically filed returns containing the Schedules K-2 and K-3 via the Modernized e-File (MeF) system for partnership returns until March 20, 2022, and for S corporation returns until mid-June. The lack of a timely available MeF filing option for these forms in electronic format will cause unnecessary harm to all affected parties.”

FL - Guidance provided on change in application process for child care tax credit

Beginning October 1, 2024, taxpayers that wish to participate in the child care tax credit program must apply to the […]

Read More
FL - Guidance provided on change in application process for child care tax credit

IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2024-35

The IRS has updated the applicable percentage table used to calculate an individual’s premium tax credit and required contribution percentage […]

Read More
IRS Updates Premium Tax Credit Table, Required Contribution Percentage, Rev. Proc. 2024-35

Changes Under SECURE 2.0 Act to Affect Amounts Report by Businesses on Forms W-2, FS-2024-29

The IRS has reminded businesses that starting in tax year 2023 changes under the SECURE 2.0 Act may affect the […]

Read More
Changes Under SECURE 2.0 Act to Affect Amounts Report by Businesses on Forms W-2, FS-2024-29

IRS Urges Tax Professionals to Strengthen Security Measures Against Rising Threats, IR-2024-224

The IRS and the Security Summit concluded their eight-week summer awareness campaign by urging tax professionals to implement stronger security […]

Read More
IRS Urges Tax Professionals to Strengthen Security Measures Against Rising Threats, IR-2024-224

IRS Reminds Employers to Use Educational Assistance Programs for Student Loan Payments Until 2025, IR-2024-227

The IRS has reminded employers that educational assistance programs can be used to help employees pay off student loans until […]

Read More
IRS Reminds Employers to Use Educational Assistance Programs for Student Loan Payments Until 2025, IR-2024-227

IRS Urges Taxpayers to Perform End-of-Summer Tax Checkup, IR-2024-225

The IRS has urged taxpayers to conduct an end-of-summer tax checkup to avoid unexpected tax bills in the upcoming year. […]

Read More
IRS Urges Taxpayers to Perform End-of-Summer Tax Checkup, IR-2024-225

FL - Hillsborough County sales surtax refund announced

Hillsborough County residents and non-residents who can verify taxable expenditures with receipts or other documentation will receive compensation equal to […]

Read More
FL - Hillsborough County sales surtax refund announced

IRS Highlights New Business Tax Account Features, FS-2024-27

The IRS announced that it is continuing to expand the features within Business Tax Account (BTA), an online self-service tool […]

Read More
IRS Highlights New Business Tax Account Features, FS-2024-27

Guidance Issued on Retirement Plan Employer Matching Contributions Made for Student Loan Payments, Notice-2024-63; IR-2024-217

The IRS has issued a series of questions and answers for 401(k) and similar retirement plans that provide, or wish […]

Read More
Guidance Issued on Retirement Plan Employer Matching Contributions Made for Student Loan Payments, Notice-2024-63; IR-2024-217

IRS WBO Celebrates Contributions Leading to $7 Billion Recovery , IR-2024-199

The IRS Whistleblower Office has recognized the contributions of whistleblowers on the occasion of National Whistleblower Appreciation Day, which falls on July […]

Read More
IRS WBO Celebrates Contributions Leading to $7 Billion Recovery , IR-2024-199