News For Your Week Ahead: January 21, 2022

On this week’s MSATP TV, Cliff Reiter of National Accounting Sales shared how he can help you sell your accounting practice. From listing your practice to interest rates on financing a potential purchase, Cliff covered all the details! Click the button below to tune into the episode.

Watch on YouTube.

Coming Up: On Tuesday, January 25 at 10 a.m., Joann Platt will be going through the benefits of joining one of our Business Builders ThinkTank groups. Then on Thursday, January 27 at 10 a.m., Jonathan Pocius of Payroll Services, LLC will discuss how the company can help you and your clients with your payroll needs.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week!

Applicable Federal Rates| RR-2022-03

Revenue Ruling 2022-03 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274.

For more information, click here.

Things to Remember When Filing Income Tax Returns in 2022 | IR-2022-16

In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those waiting on their 2020 tax return to be processed, here’s a special tip to ensure the tax return is accepted by the IRS for processing. Make sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year’s AGI from last year’s return. Remember, if using the same tax preparation software as last year, this field will auto-populate.

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Upcoming Legislative Briefings and Hearings | Maryland Chamber of Commerce

Tuesday, January 25, 2022

Wednesday, January 26th, 2022

Thursday, January 27, 2022

For more information, click here.

How Small Business Owners Can Deduct Their Home Office From Their Taxes | Tax Tip 2022-10

The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on their 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business.

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IRS Revises Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of The Internal Revenue Code, as Part of Ongoing Efforts to Improve Service

As part of ongoing efforts to improve service for the tax-exempt community, the IRS issued the revised Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code and its instructions to allow electronic filing.

Beginning January 3, 2022, applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications; however, after April 4 the Form 1024 must be submitted electronically.

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IRS Issues Guidance Regarding the Retroactive Termination of the Employee Retention Credit

The IRS issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Infrastructure Investment and Jobs Act, which was enacted on November 15, 2021, amended the law so the Employee Retention Credit applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business.

For more information, click here.

Common Tax Return Mistakes That Can Cost Taxpayers | COVID Tax Tip 2022-11

Tax laws are complicated but the most common tax return errors are surprising simple. Many mistakes can be avoided by filing electronically. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.

For more information, click here.