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.

FL - Taxpayer did not qualify as private trust

The Florida Department of Revenue (department) determined that a taxpayer was not a private trust excluded from the definition of […]

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FL - Taxpayer did not qualify as private trust

FL - Governor proposes tax cuts in state of the state address

In his State of the State Address, Florida Gov. Ron DeSantis proposed $1.1 billion in tax cuts, the continuation of […]

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FL - Governor proposes tax cuts in state of the state address

FinCEN Commences Beneficial Ownership Reporting Under Bipartisan Corporate Transparency Act

The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), has begun accepting beneficial ownership information report under the bipartisan Corporate Transparency Act, enacted in 2021. This effort requires companies doing […]

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FinCEN Commences Beneficial Ownership Reporting Under Bipartisan Corporate Transparency Act

Employee Benefit Plan Filing Extension Procedures Updated

Starting in 2024, Form 5558 is no longer used to request an extension of time to file Form 5330, Return of Excise […]

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Employee Benefit Plan Filing Extension Procedures Updated

More Than 1,000 Projects Registered Through IRS ECO Tool, IR-2024-14

The Internal Revenue Service said that more than 1,000 projects have been registered through the agency’s Energy Credits Online tool. The tool was created to help taxpayers who are taking […]

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More Than 1,000 Projects Registered Through IRS ECO Tool, IR-2024-14

Transitional Guidance on Reporting of Information on Receipt of Digital Assets Announced, Announcement 2024-4, IR-2024-12

The IRS has provided transitional guidance under Code Sec. 6050I with respect to reporting transactions involving receipt of digital assets. The Service has further clarified that at this time, digital assets are not required […]

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Transitional Guidance on Reporting of Information on Receipt of Digital Assets Announced, Announcement 2024-4, IR-2024-12

IRS Encourages Taxpayers to Get Ready for 2024 Filing Season, IR-2024-1

The IRS has encouraged taxpayers to utilize tips, tools and other resources available on the IRS website to Get Ready for 2024 filing season. The agency is set to announce the start […]

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IRS Encourages Taxpayers to Get Ready for 2024 Filing Season, IR-2024-1

IRS Updates List of Qualified Census Tracts for Qualified Mortgage Bonds and Mortgage Credit Certificates, Rev. Proc. 2024-08

The IRS has provided issuers of qualified mortgage bonds and issuers of mortgage credit certificates with an updated list of qualified census tracts for each state, the District of Columbia and Puerto Rico. […]

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IRS Updates List of Qualified Census Tracts for Qualified Mortgage Bonds and Mortgage Credit Certificates, Rev. Proc. 2024-08

IRS Announces Leadership Restructuring, IR-2023-237

The IRS Commissioner, Danny Werfel, has announced plans for new leadership structure to align with transformation goals. The updated chart, the first in two […]

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IRS Announces Leadership Restructuring, IR-2023-237

IRS: Taxpayers and Tax Professionals Should Protect Themselves from Scams, IR-2023-223, IR-2023-224, IR-2023-226, IR-2023-227, IR-2023-229

As the National Tax Security Awareness Week concludes, the IRS emphasized on the ongoing need for taxpayers and tax professionals to stay […]

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IRS: Taxpayers and Tax Professionals Should Protect Themselves from Scams, IR-2023-223, IR-2023-224, IR-2023-226, IR-2023-227, IR-2023-229