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2023 Year In Review and Preparation for Coming Tax Season

The IRS reminds taxpayers there are things they should do before the current tax year ends on December 31.

  • Small Businesses - Beneficial Ownership Information (BOI) report required by The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S.Treasury.

    • If your company existed before January 1, 2024, it must file its initial beneficial ownership information report by January 1, 2025.

    • If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective.

    • Corrected or updated reports must be filed no later than 30 days after the date that the incorrect information is found or the date of the change.

  • Review and Understand Form 1099-K if you receive one

    • Previous announcement: Starting January 1, 2022, all third-party payment platforms are required to issue Forms 1099-K when payments to merchants for goods and services exceed $600.

      • Updated as of November 21, 2023: The IRS announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. Accordingly, the $600 threshold for payment apps and online marketplaces to report payments on Form 1099-K is delayed for tax year 2023. The IRS is planning a threshold of $5,000 for tax year 2024.

    • Money received as a gift or reimbursement of a share of a meal or rent should not be reported on a 1099-K. If it was, contact the payment platform (the issuer of your Form 1099-K) to correct the form, or let your tax preparer know.

    • Only business related transactions or gain from any sale of your personal assets are taxable.

  • Donate to Charity

    • Taxpayers must make any donation to a tax-exempt organization they want to deduct on their 2022 return by December 31.

    • IRA owners age 70½ or over have the option to transfer up to $100,000 to charity tax-free each year. These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to give to charity before the end of the year. For those who are at least 72, QCDs count toward the IRA owner's required minimum distribution for the year.

  • Find information about retirement plans

    • Maximize your contribution to your IRA accounts. The contribution limit to all of your traditional IRAs and Roth IRAs for 2023 is $6,500 ($7,500 if you're age 50 or older), or, if less, your taxable compensation for the year.

    • Contribute salary deferral - Taxpayers can make a salary deferral to a retirement plan. This helps maximize the tax credit available for eligible contributions. Taxpayers should make sure their total salary deferral contributions do not exceed the $22,500 limit for 2023.

    • Required minimum distributions (RMDs) - Individuals who reach 73 in 2023 have their first RMD due by April 1, 2024.

  • Consider estimated tax payments - Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2023 is due on Jan. 16, 2024.

  • Report virtual currency transactions on Form 1040 - If you received, sold, exchanged or otherwise disposed of any financial interest in virtual currency during 2023, you will have to report these transactions.

  • Identity Protection Personal Identification Number (IP PIN) - Consider obtaining an IP PIN issued by the IRS to get extra protection against identity theft during the 2024 tax season.

  • Check Individual Taxpayer Identification Number (ITIN) - If your and your spouse' Social Security Numbers were not used for your tax returns, check if an ITIN is needed for you and/or your spouse, and if the ITIN needs to be renewed.

  • View account information online - Individuals who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.

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