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 - Guidance issued on affidavit required to claim exemption for boats sold to nonresident purchasers

Guidance is issued regarding changes that have been made to the affidavit required to claim the sales tax exemption for […]

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FL - Guidance issued on affidavit required to claim exemption for boats sold to nonresident purchasers

FL - Storm Extensions Offered

The Florida Department of Revenue is offering corporate income tax return filing extensions for businesses in counties affected by severe […]

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FL - Storm Extensions Offered

FL - Credit for employing individuals with unique abilities discussed

Florida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]

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FL - Credit for employing individuals with unique abilities discussed

FL - Indexed tax rate on asphalt for 2024-2025 announced

Florida issued guidance that discusses the new corporate income tax credit for employing individuals with unique abilities. The guidance includes […]

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FL - Indexed tax rate on asphalt for 2024-2025 announced

Inflation Adjusted Credit Rate for Carbon Dioxide Sequestration Released, Notice 2024-39

The IRS has released the inflation adjustment factor for the credit for carbn dioxide (CO2) sequestration under Code Sec. 45Q for 2024. The inflation adjustment factor is 1.3877, and the credit is $27.75 per metric ton […]

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Inflation Adjusted Credit Rate for Carbon Dioxide Sequestration Released, Notice 2024-39

IRS Tightens Scrutiny on Employee Retention Credit Claims, IR-2024-169

The IRS has announced plans to deny tens of thousands of high-risk Employee Retention Credit (ERC) claims while beginning to process lower-risk claims. The agency’s review has […]

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IRS Tightens Scrutiny on Employee Retention Credit Claims, IR-2024-169

Seniors Warned of Rising Impersonation Scams, IR-2024-164

The IRS has issued a warning about the increasing threat of impersonation scams targeting seniors. These scams involve fraudsters posing as government officials, including IRS agents, […]

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Seniors Warned of Rising Impersonation Scams, IR-2024-164

Clean Hydrogen Credit Inflation Factors and Applicable Amounts for 2023 and 2024 Released, Notice 2024-45

The IRS released the inflation adjustment factors and the resulting applicable amounts for the clean hydrogen production credit for 2023 and 2024. For 2023, the inflation adjustment factor is one, so the inflation adjusted applicable amounts are the same as those in Code Sec. 45V(b). Thus, the applicable amounts for a […]

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Clean Hydrogen Credit Inflation Factors and Applicable Amounts for 2023 and 2024 Released, Notice 2024-45

United States-Russia Tax Treaty To Be Suspended, Announcement 2024-26

The United States has provided formal notice to the Russian Federation on June 17, 2024, to confirm the suspension of the operation […]

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United States-Russia Tax Treaty To Be Suspended, Announcement 2024-26

IRS Highlights Home Energy Credits for Taxpayers, IR-2024-137

The IRS has advised taxpayers that making specific energy-efficient updates to their homes could qualify them for home energy credits. This guidance comes under the expanded provisions of […]

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IRS Highlights Home Energy Credits for Taxpayers, IR-2024-137