Potential CPE

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct.1, 2023.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:

-8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
-5.5% for the portion of a corporate overpayment exceeding $10,000.
-8% for underpayments (taxes owed but not fully paid).
-10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2023. See the revenue ruling for details.

In this Taxes in Ten video we discuss Qualified Domestic Relations Orders AKA QDROs.

Qualified Domestic Relations Order or QDRO In this Taxes in Ten video we discuss Qualified Domestic Relations Orders also known as a QDRO.

ERC update
Did your client qualify for ERC based on "supply chain" issues. Well the IRS has now issued written legal guidance and they just might disagree with that flimsy position.

www.irs.gov

1040 MeF Production Shutdown Schedule

Shutdown begins on Saturday, November 26, 2022, at 11:59 p.m. Eastern time, to prepare the system for the upcoming Tax Year 2022 Filing Season.

QuickAlerts - Technical - 1040 Modernized e-File (MeF) Production Shutdown and Cutover QuickAlerts - Technical - 1040 Modernized e-File (MeF) Production Shutdown and Cutover Internal Revenue Service (IRS) sent this bulletin at 10/18/2022 03:22 PM EDT Having trouble viewing this email? View it as a Web page. e-file Resources QuickAlerts Library QuickAlerts Article QuickAlerts Brochure....

As you head into the final 1/3 of the year here are a few things to remember for tax year 2022:
1. The 1 year only increase in the child tax credit expired at the end of 2021. This credit reverted back to $2,000 from $3,000.
2. The age is reduced back to under 17 from under 18.
3. The credit is no longer fully refundable. A max of $1,400 is refundable.
4. The credit reverts back to the prior income limits of $200,000 / $400,000 and the step up threshold of $75,000 / $150,000 no longer applies.

Have you seen the new update at "Where's my refund"?

You can now lookup the current year and the prior two years.