The IRS has announced Monday, Jan.

 Prior to 2020,  a "Stretch IRA" was used to extend the tax-deferred status of an inherited IRA  when it passed to a non-spouse beneficiary (i.e. children and/or grandchildren).   This way you could pass an IRA down to the next generation and beneficiaries would enjoy the tax benefits of an IRA over their respective lifetimes.

Most of the revenue collected by the IRS doesn't come from payments submitted with tax returns. It comes from amounts withheld from employees' wages (income tax and payroll tax). Since they represent around 70% of the IRS's revenue, unpaid payroll taxes are taken very seriously.

Although scams can happen any time of the year, they tend to be more prevalent during tax season. Scammers use tax refund time to target victims through various email phishing attempts, fraud schemes, phony phone calls and other deceptive activities. Here are four common tax season scams:

In October of 2023, the IRS announced a 

 As of Jan. 1, 2024, certain types of corporations, limited liability companies and other similar entities created in or registered to do business in the United States must report information to FinCEN about their beneficial owners—the persons who ultimately own or control the company. BOI reporting is not an IRS program; all inquiries must be directed to FinCEN.

The Internal Revenue Service said that it is providing failure-to-pay penalty relief for roughly 4.7 million taxpayers who didn't receive automated collection reminder notices from the tax agency.

The IRS has announced that the optional standard mileage rate for business use of an automobile will increase by 1.5 cents starting January 1, 2024, to 67 cents per mile. The depreciation element increases to 30 cents. The rates apply to electric, hybrid, and gasoline-powered vehicles. 

The mileage rate for medical/moving purposes decreases to 21 cents per mile (from 22 cents per mile in 2023).

The mileage rate for service to charitable organizations remains at 14 cents per mile. The charitable mileage rate is a statutory rate and not indexed.

The retirement planning changes in a nutshell:

If you have had your Social Security Number stolen for filing a fake tax return, then you know that the IRS issued you an IP Pin number.

Beginning Jan. 1, 2024, the electronic filing threshold for information returns (like 1099-NEC, 1099-Misc or 1099-S forms) will reduce from 250 to 10 for filing season 2024. Until now, only those who filed more than 250 information returns were required to file electronically and the 250-return threshold was applied separately to each type of information return. Now, filers need to combine all information return types they file to determine if they meet the 10-return threshold and the requirement to file electronically applies to them.

As business owners, we all need to do an end-of-year planning session so we can hit the ground running for the next fiscal year.  As part of that review we should be any changes you need to accomplish to give yourself a better understanding of how much money you are actually making - and - if the accounting system you are currently using is producing the data you need to determine that.