ERC, required minimum distributions, filing season, IRS free file, SECURE 2.0, 1099-K

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e-News for Payroll ProfessionalsFebruary 2, 2024

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Issue Number:  2024-01

Inside This Issue

  1. Employee Retention Credit Voluntary Disclosure Program webinar on Feb. 8
  2. Required minimum distributions: Beneficiaries
  3. 2024 tax filing season starts as IRS begins accepting tax returns January 29
  4. IRS Free File now available
  5. Guidance on anti-abuse rules under Section 127 of the SECURE 2.0 Act of 2022 and certain other issues with respect to Pension-Linked Emergency Savings Accounts
  6. 2023 Form 1099-K: Free online video helps those who get payments through payment apps and online marketplaces
  7. New forms, instructions, publications

 1.  Employee Retention Credit Voluntary Disclosure Program webinar on Feb. 8


The webinar Employee Retention Credit Voluntary Disclosure Program will take place on Feb. 8 at 2 p.m. EST. Learn about the advantages of the program, how to apply and who qualifies, and other ERC resources available from the IRS. To register for this webinar and for additional information on future webinars hosted by the IRS, visit the Webinars for Tax Practitioners webpage.

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 2.  Required minimum distributions: Beneficiaries


Beneficiaries of retirement plan and IRA accounts are subject to required minimum distribution (RMD) rules. The SECURE Act changed how beneficiaries of inherited retirement plans took RMDs based on when the original plan owner died. The IRS provides more in-depth information on retirement plan beneficiaries on IRS.gov. There were no changes to the RMD requirements for beneficiaries where the account owner died prior to 2020 or to beneficiaries that are not individuals.

Distributions to beneficiaries from qualified retirement plans

If the required minimum distribution is from a qualified retirement plan, such as a 401(k) or profit-sharing plan, the plan document establishes the distribution options available to satisfy the RMD rules. A spousal beneficiary will generally have more options available to them in the plan than a non-spouse beneficiary. Beneficiaries should contact the plan administrator to learn about their distribution options in a qualified plan.

For more detailed information on the changes made to beneficiary distributions by the SECURE Act and how these changes interact with the CARES Act, please visit IRS.gov/RMD and see Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

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 3.  2024 tax filing season starts as IRS begins accepting tax returns January 29


A news release was issued this week that lays out more details for expanded customer service focus by the IRS this filing season.

“We’ve taken important steps to add more improvements to help taxpayers, ranging from expanded in-person hours, better online options and improved phone service,” IRS Commissioner Danny Werfel said,

In brief, the 2024 filing season will continue to focus on improving services to taxpayers with the passage of the Inflation Reduction Act such as:

  • Many Taxpayer Assistance Centers (TACs) around the country will provide extended hours and Saturday hours to help taxpayers through filing season.
  • “Where’s My Refund?” on IRS.gov will provide more expanded service online.

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 4.  IRS Free File now available


The IRS announced that IRS Free File Guided Tax Software service is ready for taxpayers to use in advance of the opening of tax season later this month. Eight private sector partners will provide online guided tax software products this year to any taxpayer with an Adjusted Gross Income (AGI) of $79,000 or less in 2023. One partner will offer a product in Spanish.

IRS YouTube Videos:

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 5.  Guidance on anti-abuse rules under Section 127 of the SECURE 2.0 Act of 2022 and certain other issues with respect to Pension-Linked Emergency Savings Accounts


The IRS issued initial guidance to help employers with implementation of pension-linked emergency savings accounts (PLESAs).

These individual accounts are designed to permit and encourage employees to save for financial emergencies. Employers can offer PLESAs in plan years beginning after Dec. 31, 2023.

Notice 2024-22 provides guidance with respect to section 127 of Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 3559, known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act). Section 127 of the SECURE 2.0 Act provides for the creation of PLESAs effective for plan years beginning after December 31, 2023.

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 6.  2023 Form 1099-K: Free online video helps those who get payments through payment apps and online marketplaces


The IRS posted a free webinar of 2023 Form 1099-K at irsvideos.gov. The filing threshold for 2023 remains payments over $20,000 and over 200 transactions, however the reporting threshold for 2024 is being planned for $5,000.

The webinar covers such topics as:

  • Friends and family transactions
  • How to report 1099-K amounts on a 2023 return
  • What remained the same during 2023 and what the IRS plans to change for 2024

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 7.  New forms, instructions, publications


Forms:

Instructions:

Publications:

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