M Compliance Group, LLC

11/26/2024

Many companies are required to report information to FinCen about the individuals who ultimately own or control them. FinCen began accepting reports on January 1, 2024 with most companies reporting due January 1, 2025. If you have not completed this yet, I can help with $50 per filing fee.

01/25/2024

If you purchased a qualifying EV during 2023 and want to receive a federal tax credit, please make sure you have the IRS Form 15400 - Clean Vehicle Seller Report readily available.

If you do not have this form and purchased a Tesla vehicle, you can request this form to be generated on the Tesla website:
- Login to Tesla account from a web browser, not an app.
- Select your vehicle and check under the documents section if you see a document called "IRA Clean Vehicle Credit Report". If you see it - that's great and you have it!
- If you do not see this form, login to your Tesla account via web browser, not an app (if already logged in, please ignore this step).
- Select "Go to" icon at the top corner of the browser.
- Click the "Contact Us" button.
- Select "Ask Question".
- Select "Generate 2023 IRA document.
- Select VIN.
- Enter your Social Security number (do it on the private machine as it is not masked).
- Click "Submit". You will receive a message "Your document will be available in the Documents section of your Tesla Account within 24 hours.

Good luck!

01/18/2023

Don’t let a tax mistake ruin newlywed bliss

When people get married their tax situation often changes. A taxpayer’s marital status as of Dec. 31 determines their tax filing options for the entire year, but that’s not all newlyweds need to know.

Here's a tax checklist for newly married couples:

Name and address changes
• Name - When a name changes through marriage, it’s important to report that change to the Social Security Administration. The name on a person's tax return must match what is on file at the SSA. If it doesn't, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by phone at 800-772-1213 or at a local SSA office.
• Address - If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, people should complete and send the IRS Form 8822, Change of Address. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or visiting their local post office.

Withholding
• After getting married, couples should consider changing their withholding. Newly married couples must give their employers a new Form W-4, Employee's Withholding Allowance within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax. They can use the Tax Withholding Estimator on IRS.gov to help complete a new Form W-4. Taxpayers should review Publication 505, Tax Withholding and Estimated Tax, for more information.

Filing status
• Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense. Taxpayers should remember, if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.

Scams
• All taxpayers should be aware of and avoid tax scams. The IRS will never initiate contact using email, phone calls, social media or text messages. First contact generally comes in the mail.

01/16/2023

No above-the-line charitable deductions for 2022

During COVID, taxpayers could take up to a $600 charitable donation tax deduction on their tax returns. However, in 2022, those who take a standard deduction may not take an above-the-line deduction for charitable donations.

01/13/2023

Some tax credits return to 2019 levels.

This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.

- Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
- For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
- The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

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01/11/2023

Reporting rules changed for Form 1099-K.

Taxpayers should receive Form 1099-K, Payment Card and Third Party Network Transactions, by January 31, 2023, if they received third party payments in tax year 2022 for goods and services that exceeded $600.

There's no change to the taxability of income. All income, including from part-time work, side jobs or the sale of goods is still taxable. Taxpayers must report all income on their tax return unless it's excluded by law, whether they receive a Form 1099-K, a Form 1099-NEC, Nonemployee Compensation, or any other information return.

Prior to 2022, Form 1099-K was issued for third party networks transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. The American Rescue Plan Act of 2021 lowered the reporting threshold for third party networks that process payments for those doing business.

Now a single transaction exceeding $600 can require the third party platform to issue a 1099-K. Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable.

The IRS cautions people in this category who may be receiving a Form 1099 for the first time – especially "early filers" who typically file a tax return during the month of January or early February – to be careful and make sure they have all of their key income documents before submitting a tax return. A little extra caution could save people additional time and effort related to filing an amended tax return. And if they have untaxed income on a Form 1099 that isn't reflected on the tax return they initially file, that could mean they need to submit a tax payment with an amended tax return.

If the information is incorrect on the 1099-K, taxpayers should contact the payer immediately, whose name appears in the upper left corner on the form. The IRS cannot correct it.

01/09/2023

Last quarterly payment for 2022 is due on January 17, 2023

Taxpayers may need to consider estimated or additional tax payments due to non-wage income from unemployment, self-employment, annuity income or even digital assets. The Tax Withholding Estimator on IRS.gov can help wage earners determine if there is a need to consider an additional tax payment to avoid an unexpected tax bill when they file.

01/05/2023

Let's start thinking about the estimated tax payments at the begging on the year! If you have taxable income from any payer that doesn't withhold tax for you, check to see if you need to make estimated tax payments.

If you have taxable income from any payer that doesn't withhold tax for you, check to see if you need to make estimated tax payments. https://www.irs.gov/pay...

12/16/2022

The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 -- up from $20,500 for 2022. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs, and claim the Saver's Credit will also all increase for 2023.

Taxpayers can read the technical guidance regarding all of the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023 in Notice 2022-55 on IRS.gov.
Here are some of the changes for 2023:

• The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will increase to $22,500.
• The limit on annual contributions to an IRA will increase to $6,500. The IRA catch up contribution limit for individuals age 50 and over is not subject to an annual cost of living adjustment and remains $1,000.
• The catch-up contribution limit for employees age 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will increase to $7,500.
• The catch-up contribution limit for employees age 50 and over who participate in SIMPLE plans will increase to $3,500, up from $3,000.
• The phase out ranges for deducting contributions to a traditional IRA will also increase. Taxpayers should review Notice 2022-55 regarding the details for their situation.
• The income phase-out range for people making contributions to a Roth IRA will increase for taxpayers filing as single, head of household and married filing jointly. Again, taxpayers should consult Notice 2022-55 for specifics about their situation.
• The income limit for the Saver's Credit for low- and moderate-income workers is $73,000 for married couples filing jointly; $54,750 for heads of household; and $36,500 for singles and married individuals filing separately.
• The amount individuals can contribute to their SIMPLE retirement accounts will increase to $15,500.

12/14/2022

Gift cards are for gifts, NOT for tax payments!

Find out how to avoid becoming a victim of a gift card scam. For more information, go to https://www.irs.gov/scams. us:Twitter – https://t...

12/12/2022

Great tips on how to avoid IRS text message scams!

Avoid smishing scams. That text message isn’t from the IRS. Visit https://www.irs.gov/phishing for more information. us:Twitte...

01/14/2022

If you have taxable income from any payer that doesn't withhold tax for you, check to see if you need to make estimated tax payments.

If you have taxable income from any payer that doesn't withhold tax for you, check to see if you need to make estimated tax payments. https://www.irs.gov/pay...