Tax Alerts

IRS Reminds IRA Owners To Make Tax-Free Donations To Charities Through Qualified Charitable Distributions, IR-2022-201

The IRS has reminded taxpayers with an individual retirement accounts (IRA), who are above the age of 70 1/2, that they are eligible to transfer up to $100,000 as qualified charitable distributions (QCD) to charity each year, tax-free. For a married couple, if both spouses are aged 70 1/2 or over and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.

While making QCD transactions, remember:

  • QCD transactions should be completed by the end of the year and these distributions become tax-free as long as they’re paid directly from the IRA to an eligible charitable organization electronically, directly to the charity, or by check.
  • Any payment made directly to the IRA owner, does not count as a QCD.
  • Transferred amounts are not taxable, and no deduction is available for the transfer, regardless of whether an eligible IRA owner itemizes such deductions in Schedule A of Form-1040, Itemized Deductions.

Reporting for QCDs require that:

  • A QCD made in 2022, must be reported on the 2022 federal income tax return, filed during the 2023 tax filing season.
  • In early 2023, the IRA owner will receive Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. from their IRA trustee that shows any IRA distributions made during calendar year 2022, including both regular distributions and QCDs.
  • The donor must get a written acknowledgement of their contribution from the charitable organization, before filing their return. The acknowledgment should state the date and amount of the contribution and indicate whether the donor received anything of value in return.

FAQs Released on Energy Efficient Home Improvements and Residential Clean Energy Property Credits, FS-2022-40

The IRS has released frequently asked questions (FAQs) about energy efficient home improvements and residential clean energy property credits. The […]

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FAQs Released on Energy Efficient Home Improvements and Residential Clean Energy Property Credits, FS-2022-40

IRS, DOL Renew Employee Misclassification Memorandum of Understanding

The Internal Revenue Service and the U.S. Department of Labor announced they have renewed a memorandum of understanding (MOU) under […]

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IRS, DOL Renew Employee Misclassification Memorandum of Understanding

Transitional Guidance on Broker Digital Asset Reporting Provided, Announcement 2023-2

The Treasury Department and IRS have announced that brokers are not required to report additional information with respect to dispositions […]

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Transitional Guidance on Broker Digital Asset Reporting Provided, Announcement 2023-2

IRS Completes Final Corrections on 2020 Unemployment Compensation Tax Payments, IR-2023-2

The IRS recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation received in 2020. […]

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IRS Completes Final Corrections on 2020 Unemployment Compensation Tax Payments, IR-2023-2

FL - Additional guidance issued on tax relief for property made uninhabitable by Hurricanes Ian or Nicole

The Florida Department of Revenue has issued additional guidance regarding property tax relief for residential properties rendered uninhabitable for 30 […]

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FL - Additional guidance issued on tax relief for property made uninhabitable by Hurricanes Ian or Nicole

Inflation Reduction Act Triggers Numerous Tax Form Changes

The passage of the Inflation Reduction Act in 2022 has triggered changes to many tax forms, tax form instructions, and […]

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Inflation Reduction Act Triggers Numerous Tax Form Changes

IRS Reminds Taxpayers to Check Tax Withholding Now to Avoid Paying Future Quarterly Estimated Payments, FS-2023-1; IR-2023-10

The IRS reminded taxpayers who earn wages to use the Tax Withholding Estimator tool to adjust their 2023 withholding. Checking now and […]

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IRS Reminds Taxpayers to Check Tax Withholding Now to Avoid Paying Future Quarterly Estimated Payments, FS-2023-1; IR-2023-10

2023 Standard Mileage Rates Released, Notice 2023-3

The IRS released the optional standard mileage rates for 2023. Most taxpayers may use these rates to compute deductible costs […]

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2023 Standard Mileage Rates Released, Notice 2023-3

FL - Taxpayer properly applied cost-of-performance rule to its income producing activities

An out of state subsidiary (taxpayer) of a nationwide online and brick-and-mortar retailer (retailer) properly sourced its service revenue under […]

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FL - Taxpayer properly applied cost-of-performance rule to its income producing activities

FL - Guidance provided on tax relief for properties made uninhabitable by Hurricanes Ian or Nicole

Florida provides guidance regarding property tax relief for residential properties rendered uninhabitable for 30 days or more due to Hurricanes […]

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FL - Guidance provided on tax relief for properties made uninhabitable by Hurricanes Ian or Nicole