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IRS Representation & Audit Support in Eatontown, NJ

Sat, 28 Mar 2026 02:15:00 GMT

IRS Representation & Audit Support in Eatontown, NJ

Navesink Tax & Advisory LLC defends Eatontown, NJ, taxpayers through IRS and state audits, notice responses, penalty abatement requests, and payment plan negotiations with skilled, strategic representation.

How Does Professional Representation Change an Audit Outcome?

Skilled representation ensures accurate documentation, protects your rights, and often reduces proposed adjustments by presenting facts clearly and negotiating favorable resolutions.

IRS agents review returns to verify income, deductions, and credits. Without representation, taxpayers often concede disputed items or fail to provide supporting evidence in the correct format. Agents may interpret ambiguous records against you, leading to higher tax bills and penalties.

A tax professional prepares a complete response, organizes exhibits, and communicates directly with the examiner. We challenge incorrect assumptions, request supervisory review when appropriate, and explore settlement options that minimize liability. Representation also reduces stress, letting you focus on your business or job while we handle the audit process.

What Triggers an IRS or New Jersey State Audit?

Audits result from mismatched information returns, statistical selection algorithms, or specific deductions that exceed norms for your income and industry.

Form 1099s and W-2s must match your reported income. Discrepancies trigger automatic notices. High Schedule C expenses relative to revenue, large charitable deductions, or home office claims can flag your return for manual review. New Jersey audits often focus on residency, use tax, or nexus issues for businesses operating across state lines.

Some audits are random, but most arise from patterns the IRS and state algorithms identify. Accurate record-keeping and consistent reporting reduce risk, but even compliant taxpayers face audits. When you receive a notice, prompt, professional response prevents escalation. For ongoing compliance support that reduces audit risk, explore our payroll and sales tax services in Eatontown, NJ to keep filings accurate and timely.

Can You Request Penalty Abatement After an Assessment?

Yes; reasonable cause, first-time abatement, and statutory exceptions allow taxpayers to reduce or eliminate penalties even after the IRS assesses them.

Penalties for late filing, late payment, or accuracy-related issues add up quickly. First-time abatement applies if you have a clean compliance history for the prior three years. Reasonable cause covers situations like serious illness, natural disaster, or reliance on incorrect professional advice.

Requesting abatement requires a clear narrative, supporting documentation, and knowledge of IRS procedures. Navesink Tax & Advisory prepares and submits abatement requests, appeals denied claims, and negotiates installment agreements when balances remain. Our representation protects your financial health and prevents collection actions.

Do Eatontown Businesses Face Unique Sales Tax Audit Risks?

Eatontown retailers and service providers must track sales tax accurately, especially when selling online or to out-of-state customers, as New Jersey audits nexus and use tax compliance closely.

New Jersey requires sales tax on tangible goods and specified services. Remote sellers with economic nexus must register and collect tax even without a physical presence. Use tax applies to out-of-state purchases where sales tax was not collected. Failing to remit or misclassifying exempt sales triggers audits.

Eatontown businesses near Fort Monmouth and major retail corridors see high transaction volumes, increasing the stakes of accurate reporting. Navesink Tax & Advisory reviews sales tax procedures, represents you in state audits, and resolves notice issues before they escalate. If you also need support with annual compliance filings, our business tax planning services in Eatontown, NJ integrate federal, state, and local obligations into one coordinated strategy.

Audit defense and notice resolution require expertise, documentation, and clear communication. When you have a skilled advocate, you protect your rights and achieve better outcomes.

Navesink Tax & Advisory LLC stands with Eatontown taxpayers facing IRS and state challenges. Request support from our experienced team by calling 732-945-5995 to resolve your notice or audit with confidence.

Estate, Trust & Inheritance Tax Services in Long Branch, NJ

Thu, 26 Feb 2026 02:15:00 GMT

Estate, Trust & Inheritance Tax Services in Long Branch, NJ

Navesink Tax & Advisory LLC helps Long Branch, NJ, families navigate estate, trust, and inheritance tax requirements with expertise, ensuring accurate filings and coordinated planning with attorneys and financial advisors.

What Are the Key Differences Between Estate and Inheritance Taxes?

Estate tax applies to the total value of a decedent's assets before distribution, while inheritance tax is paid by beneficiaries on what they receive.

The federal estate tax exemption is high, so most families avoid it. New Jersey eliminated its estate tax in 2018, but the state still imposes inheritance tax on certain beneficiaries. Class A beneficiaries, including spouses, parents, and children, are exempt. Siblings, other relatives, and unrelated individuals face rates from eleven to sixteen percent.

Trusts can reduce or defer inheritance tax by controlling distribution timing and beneficiary classification. Coordinating estate planning with lifetime gifting and trust structures preserves more wealth for heirs and simplifies administration after death.

How Do You File a Trust Return in New Jersey?

Trust returns report income earned by the trust, deductions, and distributions to beneficiaries, requiring accurate tracking of principal versus income and proper tax allocation.

Revocable trusts typically do not file separate returns during the grantor's lifetime; income flows to the grantor's 1040. Irrevocable trusts file Form 1041 federally and NJ-1041 for New Jersey. Income retained by the trust is taxed at compressed rates, which reach the top bracket quickly.

Distributions to beneficiaries carry out taxable income, shifting the liability from the trust to the recipient. Executors and trustees must track basis, capital gains, and fiduciary fees to ensure compliance and avoid penalties. Navesink Tax & Advisory prepares trust returns, coordinates with estate attorneys, and supports fiduciaries through every stage of administration. For families managing business interests within a trust, our business tax planning services in Long Branch, NJ integrate corporate and fiduciary responsibilities seamlessly.

Can You Reduce New Jersey Inheritance Tax Legally?

Lifetime gifts, charitable bequests, and trust structures can lower or eliminate inheritance tax owed by non-exempt beneficiaries under current state law.

Gifting assets before death removes them from the taxable estate and starts the clock on the annual exclusion. Charitable remainder trusts provide income to heirs while directing remainder value to qualified charities, reducing taxable inheritance. Structuring bequests to exempt beneficiaries or using life insurance trusts shifts value outside the taxable framework.

Each strategy requires careful drafting and coordination with your attorney and financial planner. Navesink Tax & Advisory works alongside your team to model tax outcomes, prepare required filings, and ensure compliance with state inheritance rules.

How Do Long Branch Coastal Property Values Affect Estate Planning?

Long Branch real estate values, especially near the oceanfront, can push estates above planning thresholds, making trust structures and valuation strategies essential for efficient transfers.

Waterfront homes and investment properties appreciate over time, increasing both estate size and potential capital gains for heirs. Accurate appraisals at the date of death establish basis for future sales and support inheritance tax calculations. If properties are held in trusts or LLCs, valuation discounts may apply, reducing taxable value.

Coordinating real estate planning with trust administration ensures heirs receive clear title, understand tax obligations, and avoid disputes. Long Branch families benefit from early planning that addresses property transfers, rental income, and potential sales in a tax-efficient manner. If your estate includes business entities or rental operations, consider our advisory services in Long Branch, NJ to integrate operational and succession planning with your estate goals.

Navigating estate and trust taxes requires sensitivity, precision, and collaboration. When your filings are accurate and your strategy is coordinated, you protect your family's wealth and honor your intentions.

Navesink Tax & Advisory LLC serves Long Branch families with the expertise and care your legacy deserves. Experience the clarity of professional fiduciary tax support by calling 732-945-5995 to start a conversation with our team.

Starting Your Business in Colts Neck, NJ: Entity Structuring Essentials

Tue, 27 Jan 2026 02:15:00 GMT

Starting Your Business in Colts Neck, NJ: Entity Structuring Essentials

Navesink Tax & Advisory LLC helps Colts Neck, NJ, entrepreneurs choose the right entity structure, register correctly, and set up bookkeeping and compliance systems that save thousands in taxes.

Which Entity Structure Saves the Most on Taxes?

The best structure depends on your income, ownership, and growth plans; S-Corps often reduce self-employment tax, while LLCs offer flexibility and simplicity.

Sole proprietorships and single-member LLCs report income on Schedule C, subjecting all profit to self-employment tax. Electing S-Corp status allows you to pay yourself a reasonable salary and take remaining profit as distributions, which avoid Social Security and Medicare taxes.

C-Corps pay tax at the entity level and again when dividends distribute, creating double taxation. However, they offer advantages for raising capital or retaining earnings. Partnerships and multi-member LLCs pass income through but require careful allocation of profit, loss, and basis among owners.

Choosing the wrong entity can cost thousands annually. Navesink Tax & Advisory reviews your projected revenue, ownership structure, and long-term goals to recommend the setup that minimizes tax and administrative burden from day one.

How Do You Register a New Entity in New Jersey?

Registration requires filing a Certificate of Formation or Incorporation with the New Jersey Division of Revenue, obtaining an EIN, and completing local business registrations.

You must also draft an operating agreement or corporate bylaws, open a business bank account, and register for state tax accounts if you have employees or collect sales tax. Monmouth County and Colts Neck Township may require additional permits or zoning approvals depending on your industry and location.

Missing a step or filing incorrectly delays your launch and exposes you to penalties. Navesink Tax & Advisory coordinates the entire process, ensuring your entity is compliant, your tax accounts are active, and your bookkeeping system is ready to track income and expenses accurately. If you also need ongoing payroll or sales tax support, our payroll and sales tax services in Colts Neck, NJ keep your operations running smoothly after launch.

What Initial Bookkeeping Systems Should You Implement?

A reliable chart of accounts, separate business banking, and monthly reconciliation routines form the foundation for accurate tax filings and financial decisions.

Many new owners mix personal and business expenses, making tax prep chaotic and exposing personal assets to liability. Setting up QuickBooks or similar software with proper categories lets you track revenue, cost of goods sold, overhead, and owner draws in real time.

Monthly reconciliation catches errors early and provides data for cash flow planning. When your books are current, you can make informed decisions about hiring, inventory, and pricing. Clean records also simplify audits and loan applications.

Do Colts Neck Business Owners Face Unique Compliance Requirements?

Colts Neck zoning regulations and Monmouth County business taxes add layers of compliance that vary by property use, employee count, and revenue thresholds.

Home-based businesses may require zoning permits, especially if clients visit your location or you store inventory. Retail and service businesses must register for sales tax and file quarterly returns. If you hire employees, you face federal, state, and local payroll obligations, including unemployment insurance and disability coverage.

Staying current with annual renewals, estimated tax payments, and compliance filings prevents penalties and keeps your focus on growth. Navesink Tax & Advisory tracks deadlines and manages filings so you never miss a requirement. For broader strategic guidance as you scale, explore our advisory services in Colts Neck, NJ to align your operations with long-term goals.

The right entity structure and compliance foundation set your business up for sustainable growth. When your taxes are optimized and your records are accurate, you gain confidence to invest in marketing, talent, and expansion.

Navesink Tax & Advisory LLC partners with Colts Neck entrepreneurs from concept to launch and beyond. Plan your next steps with our team by calling 732-945-5995 to build a solid foundation for success.

Individual & Family Tax Services in Tinton Falls, NJ

Sun, 28 Dec 2025 02:15:00 GMT

Individual & Family Tax Services in Tinton Falls, NJ

Navesink Tax & Advisory LLC provides accurate individual and family tax preparation in Tinton Falls, NJ, handling multi-state issues, retirement planning, and IRS representation with care and expertise.

When Should You Begin Multi-State Tax Planning?

Multi-state planning starts as soon as you earn income, own property, or work remotely across state lines to avoid double taxation and ensure proper credit allocation.

New Jersey residents who work in New York or Pennsylvania face overlapping obligations. Each state taxes income differently, and reciprocal agreements may not cover all scenarios. Without proper planning, you risk paying tax twice or missing credits that reduce your liability.

Residency rules also matter. If you maintain homes in multiple states or relocate mid-year, determining your domicile affects which state receives your full tax return. Accurate sourcing of wages, investment income, and retirement distributions ensures compliance and maximizes refunds.

How Do Stock Options and RSUs Affect Your Tax Return?

Stock compensation creates immediate income recognition, estimated tax obligations, and capital gain tracking that require precise reporting to avoid underpayment penalties.

When you exercise non-qualified stock options, the spread between grant and exercise price becomes ordinary income. Restricted stock units vest and trigger W-2 income even if you hold the shares. Incentive stock options may create alternative minimum tax liability without generating cash to pay it.

Each event requires updated estimated payments and careful record-keeping. If you sell shares, calculating basis and holding period determines whether gains are short- or long-term. For Tinton Falls residents working in tech or finance, integrating equity compensation into your overall tax strategy prevents surprises and aligns with retirement goals. Learn more about how our team supports professionals near you by exploring our business tax planning services in Tinton Falls, N J if you also run a side venture or consulting practice.

What Steps Follow an IRS Notice for Individuals?

Responding promptly with accurate documentation, clear explanations, and professional representation prevents penalties, liens, and prolonged disputes.

Individual notices often question deductions for home office, charitable contributions, or education expenses. The IRS may also challenge filing status or dependent claims. Gathering receipts, bank statements, and supporting letters takes time, and submitting incomplete responses can trigger audits.

Navesink Tax & Advisory reviews the notice, prepares a complete response, and communicates with the IRS on your behalf. We request penalty abatement when circumstances justify relief and negotiate payment plans if balances remain. Our representation protects your rights and resolves issues efficiently.

How Do Tinton Falls Residents Manage Retirement Tax Planning?

Tinton Falls attracts retirees and families planning for the future, making Roth conversions, required minimum distributions, and Social Security timing critical decisions.

New Jersey does not tax Social Security benefits, but pension and 401(k) withdrawals count as income. Timing large distributions can push you into higher brackets or trigger Medicare surcharges. Roth conversions in low-income years lock in tax-free growth, but require upfront payment.

Coordinating retirement withdrawals with other income sources ensures you stay within target brackets and preserve wealth for heirs. If you manage rental properties or investments alongside retirement accounts, integration becomes even more important. Tinton Falls families benefit from proactive projections that align tax strategy with estate and gift planning. For trust and estate guidance, consider our estate tax services in Tinton Falls, NJ to coordinate all aspects of your financial life.

Accurate individual tax preparation gives you confidence that your return reflects every credit, deduction, and income source correctly. When your personal and business finances align, you make smarter decisions about savings, investments, and family goals.

Navesink Tax & Advisory LLC serves Tinton Falls families with the attention and expertise your financial life deserves. Connect with our team at 732-945-5995 to plan your next tax year with clarity and confidence.

New Client Portal - Canopy

Tue, 16 Dec 2025 21:16:39 GMT

New Client Portal - Canopy

We’ve Moved to a New Client Portal: Canopy

To better serve you with faster, more secure, and user-friendly technology, we are no longer using the Thomson Reuters/NetClient CS portal.

Our firm has officially transitioned to the Canopy Client Portal for all document sharing, e-signature requests, tax organizers , invoices, and secure messaging.

�� What This Means for You

You will no longer access your documents or upload tax information through the old Thomson Reuters portal.

All client activity will now take place through Canopy.

�� How to Access the Canopy Portal

You will receive (or may have already received) an email invitation from us through Canopy. Here’s what to do:

✅ If This is Your First Time Logging In:

Open the email invitation from our firm via Canopy.

The subject line will reference “Client Portal Invitation” or “Access Your Account.”

Click the secure link in the email to set up your account.

Create your password when prompted.

Once your account is set up, you can log in anytime at:

�� https://app.canopytax.com/client-portal

✅ If You’ve Already Set Up Your Account:

You can log in directly by going to:

�� https://app.canopytax.com/client-portal

Use your email and password to access your portal.

�� Mobile Access (Optional but Recommended)

Canopy also offers a free mobile app:

Search “Canopy Client Portal” in the App Store (iPhone) or Google Play (Android).

⚠️ Need a New Invitation or Didn’t Receive the Email?

Just call our office or send us a quick message, and we’ll resend your portal link right away.

✅ What You Can Do in the New Portal:

Securely upload tax documents

Sign forms electronically

View completed returns and prior-year documents

Receive and send secure messages

Pay invoices and view statements

We appreciate your cooperation during this transition and are confident you will find the Canopy portal easier, faster, and more convenient.

If you need assistance getting logged in, please contact our office—we’re happy to help!

Business Tax Planning & Compliance in Neptune, NJ

Fri, 28 Nov 2025 02:15:00 GMT

Business Tax Planning & Compliance in Neptune, NJ

Navesink Tax & Advisory LLC partners with businesses in Neptune, NJ, to reduce tax liabilities, strengthen compliance, and support confident growth through year-round strategic tax planning and expert filings.

How Does Year-Round Tax Planning Reduce Your Liabilities?

Proactive planning identifies deductions, credits, and timing strategies that lower what you owe throughout the year, not just at filing.

Many business owners wait until tax season to review their obligations. By then, opportunities to adjust payroll, defer income, or accelerate expenses have passed. Year-round planning means your accountant reviews quarterly results, forecasts your tax position, and adjusts estimated payments before surprises arise.

This approach also strengthens your business decisions. When you understand the tax impact of a new hire, equipment purchase, or contract structure, you can move forward with clarity. Businesses in Neptune, NJ, benefit from early coordination with state and local requirements, ensuring multi-jurisdictional compliance without last-minute stress.

Which Business Structures Require Different Tax Filings?

S-Corps, C-Corps, Partnerships, and LLCs each have unique return formats, deadlines, and reporting obligations under federal and New Jersey law.

An S-Corp files Form 1120-S and passes income through to owners, who report it on personal returns. C-Corps file 1120 and pay tax at the entity level. Partnerships use Form 1065, and single-member LLCs often report on Schedule C unless they elect corporate treatment.

Each structure also triggers different state compliance steps. New Jersey requires CBT-100 or similar returns for corporations, and local municipalities may impose additional business taxes. Choosing the right entity and maintaining accurate filings protects you from penalties and positions your business for sustainable growth.

What Happens If You Receive IRS Correspondence?

IRS notices require prompt, accurate responses to avoid escalating penalties, interest, or enforcement actions that disrupt your operations.

Letters may question a deduction, request documentation, or propose an adjustment. Ignoring them leads to automatic assessments and collection activity. Responding without expertise can result in conceding more tax than necessary or missing deadlines for appeals.

Navesink Tax & Advisory reviews each notice, gathers supporting records, and communicates directly with the IRS on your behalf. We handle penalty abatement requests, payment plan negotiations, and back filings to resolve issues efficiently and protect your business reputation.

How Do Neptune Businesses Navigate Local Tax Compliance?

Neptune requires annual business registration renewals and may impose mercantile or payroll taxes that vary by revenue, location, and entity type.

Local ordinances change periodically, and missing a filing deadline can result in penalties or loss of good standing. Neptune businesses also face overlapping federal, state, and municipal obligations, especially if they operate across county lines or employ remote workers.

Coordinating all three layers of compliance ensures you remain in good standing with the IRS, New Jersey Division of Taxation, and Neptune Township. Accurate estimated tax planning prevents underpayment penalties, and timely filings keep your operations uninterrupted. If you need support with multi-state filings or entity structuring, explore our business start-up services in Neptune, NJ for guidance from day one.

Strategic tax planning gives you confidence to invest, hire, and expand without unexpected liabilities. When your compliance is current and your strategy is clear, you can focus on what drives revenue and builds value. Individual tax services in Neptune, NJ also complement your business planning, aligning personal and corporate goals for comprehensive financial health.

Navesink Tax & Advisory LLC delivers the expertise Neptune businesses need to stay compliant and grow strategically. Schedule a consultation at 732-945-5995 to discover how year-round partnership reduces stress and strengthens your bottom line.

Tax Law Changes 2025

Wed, 13 Aug 2025 21:32:22 GMT

Key Tax Law Changes

Here’s a clear, presentation-friendly snapshot of the major U.S. tax law changes under the One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025:

The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent for 2025 and beyond.
The increased standard deduction (almost doubled under the 2017 Tax Cuts and Jobs Act) and other TCJA features are now made permanent.

1. TCJA Provisions Made Permanent

2. Child Tax Credit Increase

The Child Tax Credit rises to $2,200 per qualifying child, adjusted for inflation annually.

3. SALT Deduction Cap Increased

The cap for state and local tax (SALT) deductions jumps from $10,000 to $40,000, with phase-outs for incomes above $500,000.

4. New Deductions: Tips & Overtime

Allowed 2025–2028, with employer W-2 reporting:
No tax on tips: up to $25,000 deduction per taxpayer, phased out at higher incomes.
No tax on overtime: up to $12,500 deduction (single), or $25,000 (joint), with income phase-outs.

5. Senior Bonus Deduction

Taxpayers 65 and older get an extra $6,000 deduction (per individual; $12,000 for couples), from 2025–2028, phased out at higher incomes.

6. Additional Major Changes

Estate & Gift Tax Exemptions Raised: $15 million for individuals; $30 million for couples (effective 2026).
New Deductions & Provisions: Includes auto loan interest, charitable giving for non-itemizers (up to $1,000 individual / $2,000 couple), and limits on green energy credits expiring earlier than before.
Updates for Tax-Exempt Organizations: Increased excise tax on high executive compensation; new tax on investment income for private colleges.
International & Other Provisions: Excise tax on remittance transfers; redefined GILTI/FDII definitions and rates; clean energy incentives terminate sooner.

Quick Slide Summary Table

Tax Brackets- 2017 rates (10–37%) now permanent
Standard Deduction- Permanently higher per TCJA
Child Tax Credit- In creased to $2,200, inflation-adjusted
SALT Deduction- Cap raised to $40,000 (with phase-out)
Tips Deduction- Up to $25,000, 2025–2028
Overtime Deduction- Up to $12,500 (single), $25,000 (joint), 2025–2028
Senior Deduction- Extra $6,000 per senior (2025–2028)
Estate/Gift Tax- Exemptions increased to $15M / $30M
Other Add-ons- Auto loans, non-itemizer charity, energy credits cut
Nonprofits- Higher excise on exec pay, tax on college investment income

Payment of Taxes

Mon, 22 Jul 2024 21:37:04 GMT

Federal Requirements

In New Jersey, as in many other states, there are requirements to make estimated tax payments if you expect to owe a certain amount of tax when you file your return. Here's a breakdown of the general rules:

For the federal government, to avoid penalties, you generally need to pay at least the lesser of:

90% of the tax you will owe for the current year, or
100% of the tax shown on your prior year's tax return (110% if your adjusted gross income was more than $150,000).

(which often align with state requirements):

New Jersey Estimated Tax Requirements:

New Jersey follows similar rules to the federal guidelines with some specifics:

If you expect to owe $400 or more in New Jersey Income Tax (after subtracting withholdings and other credits), you should make estimated payments.

To avoid penalties, you should pay either:

80% of the tax liability for the current year, or
100% of the tax liability from the prior year (110% if your prior year's adjusted gross income was over $150,000).

How to Make Estimated Payments in New Jersey:

Quarterly Payments: Estimated tax payments are due four times a year, typically on:
April 15
June 15
September 15
January 15 of the following year
Payment Methods: You can make payments online through the New Jersey Division of Taxation website, by mail, or via electronic funds transfer.

Penalties for Underpayment:

If you don't pay enough tax through withholding or estimated payments, you might have to pay a penalty. This is calculated based on the amount of the underpayment and the period it was underpaid.

To ensure you meet these requirements:

Calculate your estimated tax liability accurately .
Make timely estimated payments.
Adjust your withholdings if needed to cover your tax liability.

IRS announces delay in Form 1099-K

Tue, 21 Nov 2023 21:43:51 GMT

WASHINGTON — Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service today released Notice 2023-74PDF announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023.

As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn't expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023.

Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP).

Following feedback from the tax community, the IRS is also looking to make updates to the Form 1040 and related schedules for 2024 that would make the reporting process easier for taxpayers. Changes to the Form 1040 series – the core tax form for more than 150 million taxpayers – are complex and take time; delaying changes to tax year 2024 allows for additional feedback.

"We spent many months gathering feedback from third party groups and others, and it became increasingly clear we need additional time to effectively implement the new reporting requirements," said IRS Commissioner Danny Werfel. "Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040. It's clear that an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area."

The ARP required third party settlement organizations (TPSOs), which include popular payment apps and online marketplaces, to report payments of more than $600 for the sale of goods and services on a Form 1099-K starting in 2022. These forms would go to the IRS and to taxpayers and would help taxpayers fill out their tax returns. Before the ARP, the reporting requirement applied only to the sale of goods and services involving more than 200 transactions per year totaling over $20,000.

The IRS temporarily delayed the new requirement last year.

Reporting requirements do not apply to personal transactions such as birthday or holiday gifts, sharing the cost of a car ride or meal, or paying a family member or another for a household bill. These payments are not taxable and should not be reported on Form 1099-K.

However, the casual sale of goods and services, including selling used personal items like clothing, furniture and other household items for a loss, could generate a Form 1099-K for many people, even if the seller has no tax liability from those sales.

This complexity in distinguishing between these types of transactions factored into the IRS decision to delay the reporting requirements an additional year and to plan for a threshold of $5,000 for 2024 in order to phase in implementation. The IRS invites feedback on the threshold of $5,000 for tax year 2024 and other elements of the reporting requirement, including how best to focus reporting on taxable transactions.

"The IRS will use this additional time to continue carefully crafting a way forward to minimize burden," Werfel said. "We want to make this as easy as possible for taxpayers. We will work to make the new reporting requirements easier for them, and we'll work closely with third party groups, tax professionals and others to find the smoothest path to ensure compliance with the law. This is consistent with our Strategic Operating Plan. The IRS is focused on meeting taxpayers where they are and helping them get it right the first time."

Expanded information reporting, which will occur as the result of the change in thresholds for Form 1099-K, is important because it increases tax compliance and can reduce burden on taxpayers seeking to follow the law. The IRS believes that expansion must be managed carefully to help ensure that Forms 1099-K are issued only to taxpayers who should receive them. In addition, it's important that taxpayers understand what to do as a result of this reporting, and that tax professionals and software providers have the information they need to assist taxpayers.

The IRS will continue to provide information on IRS.gov/1099k.

Fact Sheet 2023-27 contains more details about this announcement.

Tax Considerations for People Who are Separating or Divorcing

Mon, 31 Jul 2023 21:49:31 GMT

Update tax withholding

When couples separate or divorce, the change in their relationship status affects their tax situation. The IRS considers a couple married for tax filing purposes until they get a final decree of divorce or separate maintenance.

When a taxpayer divorces or separates, they usually need to update their proper tax withholding by filing with their employer a new Form W-4, Employee's Withholding Certificate. If they receive alimony, they may have to make estimated tax payments. Taxpayers can figure out if they’re withholding the correct amount with the Tax Withholding Estimator on IRS.gov.

Tax treatment of alimony and separate maintenance

Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree or a written separation agreement may be alimony or separate maintenance for federal tax purposes.
Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income.

Rules related to dependent children and support

Generally, the parent with custody of a child can claim that child on their tax return. If parents split custody fifty-fifty and aren't filing a joint return, they'll have to decide which parent claims the child. If the parents can’t agree, taxpayers should refer to the tie-breaker rules in Publication 504, Divorced or Separated Individuals. Child support payments aren't deductible by the payer and aren't taxable to the payee.

Not all payments under a divorce or separation instrument – including a divorce decree, a separate maintenance decree or a written separation agreement – are alimony or separate maintenance. Alimony and separate maintenance doesn’t include:

Child support
Noncash property settlements – whether in a lump-sum or installments
Payments that are your spouse's part of community property income
Payments to keep up the payer's property
Use of the payer's property
Voluntary payments

Child support is never deductible and isn't considered income. Additionally, if a divorce or separation instrument provides for alimony and child support and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.

Report property transfers, if needed

Usually, if a taxpayer transfers property to their spouse or former spouse because of a divorce, there’s no recognized gain or loss on the transfer. People may have to report the transaction on a gift tax return.

Things for extension filers to keep in mind as they prepare to file

Thu, 20 Jul 2023 21:57:18 GMT

File by the deadline

Many people requested an extension to file their tax return after the usual April deadline. These filers have until Oct. 16, 2023, to complete and file their tax return. The IRS suggests that those who already have the forms and information they need file now – there’s no advantage to waiting until the deadline and filing now saves the worry that they may miss the deadline. Please send us your tax documents as soon as possible so we can start working on them.

There are a few things extension filers should know as they get ready to file:

Extension filers should file and pay any balance due by Monday, Oct.16, 2023.

Taxpayers get their refund faster by choosing direct deposit

Anyone due a refund should request direct deposit to get their tax refund electronically deposited into their financial account.

IRS offers payment options for taxpayers with a balance due

Those who owe taxes and can't pay their balance in full should pay as much as they can to reduce interest and penalties for late payment. The IRS has options for people who can't pay their taxes, including applying for a payment plan on IRS.gov. Taxpayers can view payment options or check their account balance online.

Extension filers should request missing or incorrect documents directly from employer or other payers

If a taxpayer is waiting to file because they’re missing a form like a W-2 or 1099, they should contact their employer, payer or issuing agency and request a copy of the missing or corrected document. If they still can't get the forms, they may need to use Form 4852 as a substitute.

Taxpayers who didn’t file in April and didn’t request an extension should still file as soon as possible

Anyone who did not request an extension by this year's April 18 deadline should file and pay as soon as possible. This will stop additional interest and penalties from adding up. There is no penalty for filing a late return for people who are due a refund

Some members of the military have different deadlines

Special deadline exceptions may apply for certain military service members and eligible support personnel in combat zones. The Department of Defense’s MilTax online tax software is available to service members and their families, regardless of income.

Taxpayers living in an area impacted by a recent natural disaster may have an automatic extension of time to make various tax payments. Visit Tax Relief in Disaster Situations on IRS.gov for more information.

Taxpayers in disaster areas may have more time to file

CrossCountry Mortgage HELOC program

Mon, 26 Jun 2023 21:59:35 GMT

5 minutes to close. 5 days to fund 100% of your loan amount. That’s all it takes to access your money with CCM Equity Express. Use the money to improve your home , pay off higher-interest debt, finance education, or pay for other major expenses!

State Credits and Incentives: Post Pandemic and Remote Workforce Considerations

Mon, 15 May 2023 22:01:43 GMT

Year-End Planning for Real Estate Owners and Operators

Wed, 10 May 2023 22:03:08 GMT

Sales Tax is Evolving- What Retailers Need to Know

Fri, 28 Apr 2023 22:05:07 GMT

The C-Corporation Advantage : Qualified Small Business Stock Exclusion

Mon, 17 Apr 2023 22:06:48 GMT

State Corporate Income Taxation

Wed, 12 Apr 2023 22:08:27 GMT

Renewable Energy Incentives from the Inflation Reduction Act

Thu, 30 Mar 2023 22:12:20 GMT

1099K Form in the GIG Economy

Wed, 08 Mar 2023 22:17:06 GMT

Accounting Methods

Tue, 28 Feb 2023 22:20:46 GMT

Corporate Year End Planning

Fri, 24 Feb 2023 22:22:51 GMT

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IRS Representation & Audit Support in Eatontown, NJ

IRS Representation & Audit Support in Eatontown, NJ

How Does Professional Representation Change an Audit Outcome?

What Triggers an IRS or New Jersey State Audit?

Can You Request Penalty Abatement After an Assessment?

Do Eatontown Businesses Face Unique Sales Tax Audit Risks?

Estate, Trust & Inheritance Tax Services in Long Branch, NJ

Estate, Trust & Inheritance Tax Services in Long Branch, NJ

What Are the Key Differences Between Estate and Inheritance Taxes?

How Do You File a Trust Return in New Jersey?

Can You Reduce New Jersey Inheritance Tax Legally?

How Do Long Branch Coastal Property Values Affect Estate Planning?

Starting Your Business in Colts Neck, NJ: Entity Structuring Essentials

Starting Your Business in Colts Neck, NJ: Entity Structuring Essentials

Which Entity Structure Saves the Most on Taxes?

How Do You Register a New Entity in New Jersey?

What Initial Bookkeeping Systems Should You Implement?

Do Colts Neck Business Owners Face Unique Compliance Requirements?

Individual & Family Tax Services in Tinton Falls, NJ

Individual & Family Tax Services in Tinton Falls, NJ

When Should You Begin Multi-State Tax Planning?

How Do Stock Options and RSUs Affect Your Tax Return?

What Steps Follow an IRS Notice for Individuals?

How Do Tinton Falls Residents Manage Retirement Tax Planning?

New Client Portal - Canopy

New Client Portal - Canopy

Business Tax Planning & Compliance in Neptune, NJ

Business Tax Planning & Compliance in Neptune, NJ

How Does Year-Round Tax Planning Reduce Your Liabilities?

Which Business Structures Require Different Tax Filings?

What Happens If You Receive IRS Correspondence?

How Do Neptune Businesses Navigate Local Tax Compliance?

Tax Law Changes 2025

Key Tax Law Changes ﻿

1. TCJA Provisions Made Permanent ﻿

2. Child Tax Credit Increase ﻿

3. SALT Deduction Cap Increased ﻿

4. New Deductions: Tips & Overtime ﻿

5. Senior Bonus Deduction

6. Additional Major Changes ﻿

Quick Slide Summary Table ﻿

Payment of Taxes

Federal Requirements

(which often align with state requirements):

New Jersey Estimated Tax Requirements:

How to Make Estimated Payments in New Jersey: ﻿

Penalties for Underpayment: ﻿

IRS announces delay in Form 1099-K

Tax Considerations for People Who are Separating or Divorcing

Update tax withholding ﻿

Tax treatment of alimony and separate maintenance ﻿

Rules related to dependent children and support ﻿

Report property transfers, if needed ﻿

Things for extension filers to keep in mind as they prepare to file

File by the deadline ﻿

Taxpayers get their refund faster by choosing direct deposit

IRS offers payment options for taxpayers with a balance due ﻿

Extension filers should request missing or incorrect documents directly from employer or other payers ﻿

Taxpayers who didn’t file in April and didn’t request an extension should still file as soon as possible

Some members of the military have different deadlines ﻿

Taxpayers in disaster areas may have more time to file ﻿

CrossCountry Mortgage HELOC program

State Credits and Incentives: Post Pandemic and Remote Workforce Considerations

Year-End Planning for Real Estate Owners and Operators

Sales Tax is Evolving- What Retailers Need to Know

The C-Corporation Advantage : Qualified Small Business Stock Exclusion

State Corporate Income Taxation

Renewable Energy Incentives from the Inflation Reduction Act

1099K Form in the GIG Economy

Accounting Methods

Corporate Year End Planning

Key Tax Law Changes

1. TCJA Provisions Made Permanent

2. Child Tax Credit Increase

3. SALT Deduction Cap Increased

4. New Deductions: Tips & Overtime

6. Additional Major Changes

Quick Slide Summary Table

How to Make Estimated Payments in New Jersey:

Penalties for Underpayment:

Update tax withholding

Tax treatment of alimony and separate maintenance

Rules related to dependent children and support

Report property transfers, if needed

File by the deadline

IRS offers payment options for taxpayers with a balance due

Extension filers should request missing or incorrect documents directly from employer or other payers

Some members of the military have different deadlines

Taxpayers in disaster areas may have more time to file