1. Special week on identity theft as holiday and tax seasons approach
The IRS, along with state tax agencies and the nation's tax industry, announced the annual National Tax Security Awareness Week focusing attention on empowering taxpayers to protect sensitive financial information against identity thieves as the holidays and the 2023 tax season get closer.
Taxpayers can see the highlights and find where to follow IRS on social media for the latest information.
As part of the week, there are several new IRS educational posters that are now available to raise awareness on key points being addressed:
2. More taxpayers to receive a Form 1099-K
The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year.
There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, 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 is excluded by law, whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return.
The IRS emphasizes that money received through third-party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable. If a Form 1099-K is incorrect and reflects income they didn’t earn, they should call the issuer. The IRS cannot correct it. Visit frequently asked questions on IRS.gov for more information.
3. Get ready now to file 2022 federal income tax return
The IRS encourages taxpayers to take simple steps before the end of the year to make filing their 2022 federal tax return easier. With a little advance preparation, a preview of tax changes and convenient online tools, taxpayers can approach the upcoming tax season with confidence.
Taxpayers should be aware of:
Need to adjust tax withholding when changes happen, reporting non-wage income
Factors affecting refund size and timing
Previously unprocessed returns
Expiring tax ID numbers
4. IRS Commissioner Charles Rettig’s final message
We are on the brink of an exciting new era for the IRS, one that is desperately needed to transform the agency to improve taxpayer service and ensure fairness in tax compliance.
5. Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
Reminder to IRA owners age 70½ or over: Qualified charitable distributions are great options for making tax-free gifts to charity
IRS’ five-year Strategic Plan now available in Spanish
IRS announces job openings to hire over 700 new employees across the country to help taxpayers in person
Treasury and IRS expand program for approving certain retirement plans