Advice

Daylight saving time begins at 2:00 a.m., March 12, 2023.
Last summer, the Department of Education floated a plan under which borrowers could have up to $20,000 in debt forgiven. The program is now tied up in court, with no end in sight. In response, the Department of Justice, in conjunction with the DoEd, has come up with an alternative: making it easier for debtors to declare personal bankruptcy.
Final regulations allow you to furnish Forms 1095-C to full-time employees by March 2, if you can’t furnish them by the W-2 deadline of Jan. 31, without notifying the IRS. Forms are due to the IRS by Feb. 28 if you’re filing on paper, or March 31 if you’re e-filing.
It’s almost impossible for employers to give gifts to employees, unless those gifts are tax-free de minimis fringe benefits or qualified employee discounts. Affirming this, the Tax Court ruled cash transfers from a CEO to a vice president who were romantically involved weren’t gifts, but were taxable.
Congratulations. You filed your W-2s with the Social Security Administration and the snags you hit were minor. But you’re not done. Now it’s time to fix the mistakes you didn’t catch before you filed.
The IRS’s standard mileage rate, which you can use to reimburse employees who drive their own cars on business, or to value employees’ personal use of company vehicles first made available to them this year, increases to 65.5¢ a mile for 2023, up 3¢ from the July to December 2022 rate.
You can’t round cents’ entries on your Forms 941. This puts a premium on ensuring these entries follow a decimal point and not a comma before you file. It’s an easy mistake to make, considering the period and comma keys are adjacent on keyboards. Taxpayers found this out the hard way when the Tax Court upheld accuracy-related penalties for a 25¢ error.
Ensuring an accurate tax liability begins with accurate W-4s. Employees who need to file new forms because of changes in their financial or personal circumstances now have the inflation-adjusted figures on which to base their decisions. At the other end of the spectrum, more employees may qualify for the earned income tax credit.
Want to go to the company’s holiday party guilt-free? You can, provided you accomplish some key tasks beforehand. This is what you should do now.
You have three primary concerns with year-end reporting: getting the right returns into the right hands, ensuring those returns are correct and, if your returns are incorrect, timely correcting and refiling them. Each step is loaded with pitfalls.