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Category: Tax Tips

The Stop Scam Tax Preparers Act: Safeguarding Maryland Taxpayers with MSATP’s Advocacy

Posted on by msatp_admin

The Maryland Society of Accounting and Tax Professionals (MSATP) has long been a stalwart advocate for ethical practices in the tax preparation industry. Our recent triumph in supporting the passage of the Stop Scam Tax Preparers Act (Senate Bill 675) underscores our commitment to protecting Maryland taxpayers from fraudulent tax preparers who exploit the most vulnerable populations.

The Need for the Stop Scam Tax Preparers Act
Fraudulent tax preparers pose a significant threat to the financial well-being of Marylanders, especially minorities, low-income families, and ethical tax professionals. These scam artists often promise inflated refunds or engage in other deceptive practices, leaving taxpayers to face the consequences of incorrect filings, including fines, audits, and even criminal charges. The Stop Scam Tax Preparers Act aims to curb these practices by instituting stricter regulations and enforcement mechanisms.

Key Provisions of the Act
The Act introduces several critical measures to ensure the integrity of tax preparation services in Maryland:

Code of Ethics and Professional Conduct: The State Board of Individual Tax Preparers is mandated to publish a comprehensive code of ethics and rules of professional conduct by January 1, 2026. This code will be developed with input from the tax preparer community to ensure it addresses real-world challenges and ethical considerations.

Enhanced Reporting and Enforcement: The Board is required to notify the Comptroller and the Field Enforcement Bureau of the Comptroller’s Office within five business days of any disciplinary action or alleged violation. This rapid reporting mechanism ensures swift action against violators.

Penalties for Violations: The Act introduces stringent penalties for tax preparers who engage in fraudulent activities or operate without proper licensing. Convicted individuals may face fines up to $10,000 or imprisonment up to five years, with each false return constituting a separate violation.

Support for Low-Income Taxpayers: Fines collected under the Act will be directed to the Tax Clinics for Low-Income Marylanders Fund. This fund supports legal clinics that assist low-income residents with tax-related issues, ensuring they have access to professional help and advocacy.

MSATP’s Role in Advancing the Legislation
MSATP’s journey from proposing the Stop Scam Tax Preparers Act to witnessing its passage has been marked by unwavering dedication and proactive advocacy.

Advocacy and Testimony
Gigi Hawkins testified before the legislative committees, sharing firsthand accounts and data on how fraudulent tax preparers exploit vulnerable communities. Her compelling testimony highlighted the need for robust regulatory frameworks and stringent enforcement to protect taxpayers and uphold the integrity of the tax preparation profession.

Collaboration and Support
MSATP collaborated with key stakeholders, including the Office of the Comptroller and the State Board of Individual Tax Preparers, to draft and refine the provisions of the Act. Our members provided valuable insights and feedback, ensuring the legislation addressed practical concerns and industry-specific challenges.

Raising Awareness
In addition to legislative advocacy, MSATP launched a comprehensive awareness campaign to educate the public and our members about the dangers of scam tax preparers. We organized workshops, published informative articles, and utilized social media to disseminate critical information on how to identify and avoid fraudulent tax services.

Celebrating the Passage
The passage of the Stop Scam Tax Preparers Act marks a significant victory for Maryland taxpayers and the tax preparation industry. On May 16, 2024, MSATP’s Executive Director Gigi Hawkins, Committee on Professional Regulation Chair Betty Stehman, Legislative Review Chair John Salan, and Committee on Professional Regulation member and Board Delegate Nicole Moore proudly attended Governor Wes Moore’s bill signing ceremony. Their presence at this momentous event underscored MSATP’s pivotal role in advocating for and securing the passage of this critical legislation.

Looking Ahead
The passage of the Stop Scam Tax Preparers Act is a significant victory for Maryland taxpayers and the tax preparation industry. However, our work is far from over. MSATP will continue to monitor the implementation of the Act, advocate for necessary adjustments, and provide ongoing support to our members and the broader community.

We remain committed to fostering an ethical, inclusive, and professional tax preparation environment in Maryland. Together, we can ensure that all Marylanders receive the honest, competent, and reliable tax services they deserve.

News For Your Week Ahead: May 20, 2022

Posted on by Walter Moore

Information Chaos – the reason we are “Drowning in Information, yet starved for Knowledge.” Rob Smith of Liscio joins us to give us his theory on information chaos and what he can do to help get you more organized using Office 365.

Watch on YouTube.

On Wednesday, May 25 at 9 a.m. We will be going live from our Annual Convention in Ocean City, MD with the annual meeting. Be sure to follow us on LinkedIn, Facebook, YouTube, and Twitter to view the meeting and other updates throughout the convention!

Just a reminder our offices will be closed next week for the Annual Convention & Banquet. We can still be reached via email at info@msatp.com, lily@msatp.org, navaal@msatp.org, walter@msatp.org, heather@msatp.org, or kebaugh@msatp.org. Our offices will reopen on May 31st.

There is still time to register for the individual classes virtually or in-person at MSATP’s Annual Convention and Banquet. Please use the button below to register!

Small Firms Expecting Better Business Conditions in the Next Six Months Hits Record Low | NFIB

In NFIB’s April Small Business Economic Trends report, the number of owners expecting business conditions to improve in the near future has fallen to the lowest level recorded in the 48-year history of the survey.

For more information, click here.

Maryland – Property Tax: Credit Available for Newly Constructed Office/Retail Property | via CCH TaxAware

Effective for tax years after June 30, 2022, Maryland will offer an enterprise zone property tax credit for newly constructed property with office and retail space that became eligible for the property tax credit between January 1, 2019 and December 31, 2021. The credit is available for 13 years and is available for 80% of the tax for the first eight years and decreases by 10% each year after until the credit expires.

Maryland – Multiple Taxes: Historic Revitalization Credit Extended, Commercial Caps Increased | via CCH TaxAware

Maryland is extending the sunset date for the historic structure revitalization credit that eligible taxpayers can claim against:

  • corporate income tax liability;
  • personal income tax liability; and
  • insurance premium tax liability.

It is also increasing the caps on credits for commercial historic revitalization projects.

Sunset Date

The sunset date for the credit is now July 1, 2031, instead of July 1, 2024. Taxpayers can continue to claim a credit for:

  • commercial rehabilitation projects that received an initial credit certificate; and
  • other projects that received approval for a rehabilitation plan on or before June 30, 2031.

Commercial Credit Caps

The cap for commercial rehabilitation credits increases from:

  • $3 million to $5 million for projects other than those in Level 1 or Level 2 enterprise zones;
  • $3.15 million to $5.25 million for Level 1 enterprise zone projects; and
  • $3.3 million to $5.5 million for Level 2 enterprise zone projects.

Maryland can also specify a lower cap in the initial credit certificate.

Get access to news updates like the ones above when you sign up for CCH Tax Aware, a complimentary benefit of being an MSATP member! Visit the perks page of your profile for information on how to sign up.

News For Your Week Ahead: May 6, 2022

Posted on by Walter Moore

Are you an MSATP member? Don’t forget to renew your membership. We look forward to continuing to serve you as a member! Please log in to your profile and click dues to renew your membership or call (800) 922-9672.

Coming Up: On Thursday, May 12 at 12 p.m. Rob Smith of Liscio will join us again for another episode in his Lunch & Learn series on Office 365. View our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms.

Many Tax-Exempt Organizations Must File Information Returns by May 16 | Tax Tip 2022-69

Even though organizations like charities and foundations may be tax-exempt, the IRS still requires them to file certain information every year. For many of these exempt organizations, the deadline to file their 2021 information return is Monday, May 16, 2022.

Tax-exempt organizations must file their forms electronically. E-filing reduces processing time, making compliance with reporting requirements easier.

For more information, click here.

For National Small Business Week, Plan Now to take Advantage of Tax Benefits for 2022; Enhanced Deduction for Business Meals, Home Office Deduction, and More | IR-2022-100

The IRS urges business taxpayers to begin planning now to take advantage of the enhanced 100% deduction for business meals and other tax benefits available to them when they file their 2022 federal income tax return.

During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the theme for this year’s celebration: “Building a Better America through Entrepreneurship.” With next year’s filing deadline nearly a year away, any entrepreneur still has time to identify possible tax benefits, take action to qualify for them and then claim them when they file in 2023.

For more information, click here.

Qualified Intermediary Withholding Agreements | N-2022-23

Notice 2022-23 sets forth proposed changes to the qualified intermediary (QI) withholding agreement (QI agreement) described in §1.1441-1(e)(5) and (6) that will permit a QI to assume withholding and reporting responsibilities for purposes of sections 1446(a) and (f). Generally, the notice sets forth proposed changes to the QI agreement that apply to a QI effecting a transfer of an interest in a publicly-traded partnership (PTP) or receiving a distribution made by a PTP on behalf of an account holder of the QI.

For more information, click here.

News For Your Week Ahead: April 8, 2022

Posted on by Walter Moore

Rob Smith of Liscio joined us again and gave an in-depth demonstration on how to manage files and documents within the Microsoft Teams environment. Using Teams you can create and edit documents within the program simultaneously with all members of your organization. Tune in to learn how!

Watch on YouTube.

Coming Up: On Thursday, April 21st at 12 p.m. Rob Smith of Liscio will join us again and will discuss how to manage clients within Microsoft Lists. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Time is Running Out to File for Tax Year and Still Get Unclaimed Refunds | Tax Tip 2022-51

In 2018, over a million taxpayers didn’t file their federal return, leaving $1.5 billion in unclaimed refund money. It’s not too late for people to file and get their refund, but the deadline is soon.

Taxpayers have until April 18, 2022, to file their 2018 return and get their refund.

If a taxpayer doesn’t file their return, they usually have three years to file and claim their tax refund. If they don’t file within three years, the money becomes the property of the U.S. Treasury.

For more information, click here.

Special Saturday Help from IRS Available Without an Appointment on April 9 | IR-2022-76

As the federal tax filing deadline approaches later this month, the Internal Revenue Service today announced that many Taxpayer Assistance Centers will be open around the country this Saturday, April 9 for face-to-face help.

This special Saturday help is available from 9 a.m. to 4 p.m., and no appointment is needed. Normally, TACs are only open by appointment on weekdays.

For more information, click here.

Coming Soon: 2023 Low Income Taxpayer Clinic Grant Application Period | IR-2022-75

The IRS announced that the application period for Low Income Taxpayer Clinic (LITC) matching grants for calendar year 2023 will open on or around May 2, 2022.

The LITC Program is a federal grants program administered by the Taxpayer Advocate Service, led by National Taxpayer Advocate Erin M. Collins. The Taxpayer Advocate Service operates as an independent organization within the IRS.

For more information, click here.

News For You Week Ahead: April 1, 2022

Posted on by Walter Moore

Coming Up: On Thursday, March 24th at 12 p.m. Rob Smith of Liscio will join us again and will discuss how to manage files within Microsoft Teams. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

IRS Reminds Holders of Foreign Bank and Financial Accounts of April FBAR Deadline | IR-2022-73

The IRS reminded U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network’s (FinCEN) website for further information.

Filers missing the April deadlines will receive an automatic extension until Oct. 15, 2022, to file the FBAR. They don’t need to request an extension. See FinCEN’s website for further information.

For more information, click here.

Letters About Third-Round of Economic Impact Payments Issued; Important Steps to Take for Missing Payments and Corrections | IR-2022-72

With the completion of special mailings of i all Letters 6475 to recipients of the third-round of Economic Impact Payments, the Internal Revenue Service reminds people to accurately claim any remaining third-round stimulus payment on their 2021 income tax return as the 2021 Recovery Rebate Credit.

Through Dec. 31, 2021, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families across the country. Most of the third-round payments were issued in the spring and early summer of 2021. The IRS continued to send plus-up payments through December if, after their 2020 tax return was processed last year, the taxpayer was eligible for additional amounts.

For more information, click here.

For the First Time, Maximum Educator Expense Deduction Rises to $300 in 2022; Limit $250 for Thoe Filing 2021 Tax Returns | IR-2022-70

The IRS reminded teachers and other educators planning ahead for 2022 that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses when they file their federal income tax return next year.

This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax-years 2002 through 2021, the limit was $250 per year. This means for people currently filing their 2021 tax returns due in April, the deduction is limited to $250. The limit will rise in $50 increments in future years based on inflation adjustments.

For more information, click here.

Debunking Myths About Federal Tax Refunds | Tax Tip 2022-49

Once taxpayers file their federal tax returns, they’re eager for details about their refund. When it comes to refunds, there are several common myths that can mislead taxpayers.

Myth: Calling the IRS, tax software provider, or a tax professional will provide a more accurate refund date Many people think talking to the IRS, tax software provider or their tax professional is the best way to find out when they will get their refund. The best way to check the status of a refund is online through the Where’s My Refund? tool or the IRS2Go app.

For more information, click here.

News For Your Week Ahead: March 25, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Rob Smith of Liscio joined us for another episode of his Lunch & Learn series where he explained the finer details of Microsoft Teams. Most believe Teams is simply a chat and video service similar to Zoom, however when set up properly, Teams can be a valuable resource for your small to medium accounting practice.

Watch on YouTube.

Coming Up: On Thursday, April 7th at 12 p.m. Rob Smith of Liscio will join us for another episode of his Lunch & Learn series where he will discuss Microsoft Teams and how you can manage files within the program. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Money Received Through “Crowdfunding” May Be Taxable; Taxpayers Should Understand Their Obligations and the Benefits of Good Recordkeeping | FS-2022-20

Under federal tax law, gross income includes all income from whatever source derived unless it is specifically excluded from gross income by law. In most cases, the property received as a gift is not included in the gross income of the person receiving the gift.

If a crowdfunding organizer solicits contributions on behalf of others, distributions of the money raised to the organizer may not be includible in the organizer’s gross income if the organizer further distributes the money raised to those for whom the crowdfunding campaign was organized

For more information, click here.

Valuable Tax Benefits for Members of the Military | Tax Tip 2022-44

Members of the military may qualify for tax benefits not available to civilians. For example, they don’t have to pay taxes on some types of income. Special rules may lower the tax they owe or allow them more time to file and pay their federal taxes

For more information, click here.

Reasons Why Some Tax Refunds Filed Electronically Take Longer than 21 Days | IR-2022-65

Even though the IRS issues most refunds in less than 21 days for taxpayers who filed electronically and chose direct deposit, some refunds may take longer.

Many different factors can affect the timing of a refund after the IRS receives a return. A  manual review may be necessary when a return has errors, is incomplete, or is affected by identity theft or fraud.

Other returns can also take longer to process, including when a return needs a correction to the Child Tax Credit or Recovery Rebate Credit amount, includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit, or includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process.

For more information, click here.

News For Your Week Ahead: March 18, 2022

Posted on by Walter Moore

Coming Up: On Thursday, March 24th at 12 p.m. Rob Smith of Liscio will join us for the 4th episode of his Lunch & Learn series where he will discuss Microsoft Teams and how to better set it up to fit your business. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Relief from Addition to Tax for Underpayment of Estimated Income Tax by Individual Farmers and Fishermen | N-2022-13

Notice 2022-13 provides a waiver of the addition to tax under section 6654 for underpayment of estimated income tax by qualifying farmers and fishermen described in the notice.  Under the notice, the addition to tax is waived for farmers and fishermen who, by April 18, 2022, or, for those taxpayers who reside in Maine or Massachusetts, by April 19, 2022, file their 2021 federal income tax return and pay in full any tax reported as due on the return.

For more information, click here.

Tax Time Guide: Minimize Cyber Footprints, Protect Personal Information Online | IR-2022-60

The IRS urged people to stay resolute against ongoing scams and schemes by properly securing computers, tablets and phones. Solid cybersecurity protection and scam recognition is vital to reduce the threat of identity theft inside and outside the tax system.

The IRS works closely with the Security Summit, a partnership with state tax agencies and the private-sector tax industry, to help protect taxpayer information and defend against identity theft. Taxpayers and tax professionals can take steps to help in this effort by doing things like minimizing cybersecurity footprints and recognizing common scams and schemes.

For more information, click here.

April 2022 AFR | RR-2022-08

Revenue Ruling 2022-08 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.

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code

For more information, click here.

Revenue Procedure 2022-17 | RR-2022-17

Revenue Procedure 2022-17 provides: (1) two tables of limitations on depreciation deductions for owners of passenger automobiles placed in service by the taxpayer during the calendar year 2022; and (2) a table of dollar amounts that must be used to determine income inclusions by lessees of passenger automobiles with a lease term beginning in the calendar year 2022. The tables detailing these depreciation limitations and amounts used to determine lessee income inclusions reflect the automobile price inflation adjustments required by section 280F(d)(7). For purposes of this revenue procedure, the term “passenger automobiles” includes trucks and vans.

For more information, click here.

News For Your Week Ahead: March 11, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Rob Smith of Liscio will joined us for the 3rd episode of his Lunch & Learn series where he will discuss how to manage tasks in Outlook, Microsoft To Do and OneNote. Rob tells you how to better keep track of tasks to completion and streamline your workflow, tune in to learn more!

Watch on YouTube.

Coming Up: On Thursday, March 24th at 12 p.m. Rob Smith of Liscio will join us for the 4th episode of his Lunch & Learn series where he will discuss Microsoft Teams and how to better set it up to fit your business. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

IRS Revised 2021 Child Tax Credit and Advance Child Tax Credit Payments FAQs | IR-2022-53

The IRS updated its frequently asked questions (FAQs) (FS-2022-17) PDF on the 2021 Child Tax Credit and Advance Child Tax Credit Payments. These updates are to help eligible families properly claim the credit when they prepare and file their 2021 tax return.

These changes reflect that Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). Schedule 8812 (Form 1040) is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021.

For more information, click here..

E-Filing Options Make Tax Time Easier on Member of the Military and Their Families | COVID Tax TIp 2022-36

Active-duty military personnel have options for free federal tax preparation. One is IRS Free File. This program offers, online tax preparation, electronic filing, and direct deposit of refunds, at no cost.

Members of the military and their families who have an income of $73,000 or less in 2021 may choose from any of the IRS Free File tax software companies to help them prepare their tax returns online.

For more information, click here.

Two Tax Credits That Can Help Cover the Cost of Higher Education | Tax Tip 2022-38

Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated with higher education. There are two education tax credits designed to help offset these costs – the American opportunity tax credit and the lifetime learning credit.

Taxpayers who paid for higher education in 2021 can see these tax savings when they file their tax return. If taxpayers, their spouses, or their dependents take post-high school coursework, they may be eligible for a tax benefit. To claim either credit, taxpayers complete Form 8863, Education Credits, and file it with their tax return.

For more information, click here.

News For Your Week Ahead: February 25, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Rob Smith of Liscio joined us again for another Lunch & Learn episode where he taught us about how to use OneNote with Outlook. Rob explains how the common problem with Outlook is you can’t add or consolidate items and you can’t share items with others. Basically Outlook is an information prison. Tune in to learn how to use OneNote to liberate the items in Outlook – emails, contacts, and meetings.

Watch on YouTube.

Coming Up: On Thursday, March 3rd at 12 p.m. Jonathan Pocius of Payroll Services will join us to give a full rundown of the new Mandatory Retirement Pilot Program, how it can affect your business and what he can do to help. In this Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Comptroller Franchot Extends Filing and Payment Deadline for Quarterly Estimated Tax Filers to July 15 – Action Aligns with Earlier Three-Month Extension for State Individual Income Tax Returns | Comptroller of Maryland

Comptroller Peter Franchot announced that Maryland individual taxpayers who pay estimated quarterly taxes may defer those payments for the first and second quarters of tax year 2022 until Friday, July 15, 2022.

The extension only applies to individuals, not pass-through entities (PTE) or corporate estimated tax filers. Individual estimated tax filers are strongly encouraged to file electronically.

For more information, click here.

Important Information Regarding 2021 Virginia Income Tax Returns: Virginia’s Conformity to the Internal Revenue Code Advanced to Dec. 31, 2021 | Virginia Tax Bulletin 22-1

Under legislation enacted by the 2022 General Assembly, Virginia’s date of conformity to the Internal Revenue Code will advance from December 31, 2020 to December 31, 2021. This allows Virginia to generally conform to the American Rescue Plan Act of 2021 (ARPA) and provides additional benefits to recipients of certain COVID-19 business assistance programs during Tax Years 2021 and 2019. No changes have been made to the Virginia income tax treatment for recipients of COVID-19 business assistance for Tax Year 2020.

For more information, click here.

Interest Rates | RR-2022-05

Revenue Ruling 2022-05 containing the interest rates: underpayments and overpayments. The rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2022, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.

For more information, click here.

IRS Updates FAQs for the Premium Tax Credit | RR-2022-44

The Internal Revenue Service updated its frequently asked questions (FAQs) on the Premium Tax Credit. FS-2022-13 PDF includes the following FAQ revisions and additions:

  • Updated The Basics FAQs: Q1, Q3, Q4
  • Updated Eligibility FAQs: Q5, Q7, Q8, Q9, Q11
  • Updated Reporting, Claiming and Reconciling FAQs: Q24, Q26, Q27
  • Updated Suspension of Repayment of Excess Advance Payments of the Premium Tax Credit (Excess APTC) for Tax Year 2020 FAQs: Q33, Q36
  • New Unemployment Compensation 2020 and 2021 FAQs: Q38 through Q45

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. More information about reliance is available.

For more information, click here.

Filing Season Reminder for Teachers: Some Educator Expenses May be Tax Deductible | COVID Tax Tip 2022-30

The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a grant or other source.

For more information, click here.

Tips for Parents Who Share Custody or Alternate Tax Benefits | COVID Tax Tip 2022-29

Some parents who have a legal agreement with their child’s other parent about who claims the child on their taxes may have some questions this tax season about the child tax credit and the 2021 recovery rebate credit. Here’s what people in this situation need to know before filing their 2021 federal tax return.

For more information, click here.

News for Your Week Ahead: February 18, 2022

Posted on by Walter Moore

On this week’s episode of MSATP TV, Jim Arnie joined us to give us a full rundown on the legislative session taking place in Annapolis including the pieces of legislation the Society has taken a position on. Remember as an MSATP member we advocate as your voice in Annapolis to make sure you are heard!

Watch on YouTube.

Coming Up: On Thursday, February 24 at 12 p.m. Rob Smith joins us for another episode on OneNote and how you can integrate the software with Outlook on the new MSATP TV. In this new Lunch & Learn series, you can now view our episodes live on LinkedIn, Facebook, YouTube, and Twitter! If you have questions for the speaker, you can ask them directly in the comments section of the stream on all platforms. Be sure to follow us on all of our social media to enjoy our upcoming events and stay up to date on the latest news!

Latest Spearphishing Scams Target Tax Professionals | IR-2022-36

With tax season in full swing, the IRS, state tax agencies, and the tax industry today warned tax professionals of new email scams that attempt to steal their tax software preparation credentials.

The Security Summit partners warned these scams to serve as a reminder that tax professionals remain prime targets for thieves. These thieves try to steal client data and tax preparers’ identities in an attempt to file fraudulent tax returns for refunds.

For more information, click here.

IRS Provides Further Details on Additional Relief for Certain Partnerships Preparing Schedules K-2 and K-3 for 2021 | IR-2022-38

The IRS provided further details on additional transition relief for certain domestic partnerships and S corporations preparing the new schedules K-2 and K-3 to further ease the change to these new schedules. Those eligible for the relief will not have to file the new schedules for tax year 2021.

The new schedules K-2 and K-3 improve reporting by standardizing international tax information to partners and flow-through investors, making it easier for them to report these items on their tax returns. In addition, the changes ease flow-through return preparation compliance by clarifying obligations and standardizing the format for reporting.

For more information, click here.

IRS Announced an Update to the Form 14457 – Voluntary Disclosure Practice Preclearance Request and Application | IR-2022-33

The IRS announced that Form 14457, Voluntary Disclosure Practice Preclearance Request and Application, has been revised, including expanding a section on reporting virtual currency. Form 14457 permits taxpayers who may face criminal prosecution for willful violation of tax law to voluntarily disclose information to the IRS that they failed to previously disclose.

For more information, click here.

IRS Reminds Those with Farming, Fishing Businesses of March 1 Tax Deadline | IR-2022-39

The IRS reminded those with income from a farming or fishing business they should file and pay their entire tax due on or before Tuesday, March 1, if they did not make estimated tax payments.

Taxpayers can pay from their bank account using their Online Account or they can schedule payments in advance using IRS Direct Pay.

For more information, click here.

Comptroller Franchot Renews Call for $500M in Small Business Relief – Business Advocates and Owners Throughout Maryland Share Stories of Struggle, Endorse Franchot’s Proposed Use of Surplus Money | Comptroller of Maryland

Comptroller Peter Franchot today redoubled his call for Governor Larry Hogan and the General Assembly to earmark $500 million from the state’s historic surplus for direct financial relief payments to Maryland small businesses in hard-hit industries.

The Comptroller said his agency estimated 40,000 businesses in Maryland have closed since the pandemic began, a number that is almost certain to grow.

For more information, click here.

Shop Maryland Energy Weekend Runs Saturday Through Monday – Comptroller Franchot Encourages Customers to Shop Local, Get Tax-Free Deals and Protect the Environment with ENERGY STAR Appliances | Comptroller of Maryland

Comptroller Peter Franchot reminds Marylanders they can save the environment and their hard-earned dollars during Shop Maryland Energy Weekend, which runs this weekend, February 19-21.

The following appliances bearing the ENERGY STAR label, purchased in-store or online, will be exempt from the state’s six percent sales tax: air conditioners, washers and dryers, standard-size refrigerators, furnaces, heat pumps, boilers, compact fluorescent light bulbs (not LED), dehumidifiers and programmable thermostats. Solar water heaters are tax-exempt year-round.

For more information, click here.

IRS Updates FAQs for Higher Education Emergency Grants | IR-2022-34

The IRS updated its frequently asked questions (FAQs) on Higher Education Emergency Grants.

This updated FAQ adds questions 8 and 9 in (FS-2022-11) PDF.

In IR-2021-70, Emergency aid granted to students due to COVID is not taxable, the IRS issued FAQs on how students and higher education institutions should report pandemic-related emergency financial aid grants. These FAQs were subsequently updated on May 18, 2021.

For more information, click here.

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