Get ready for a smooth tax season with essential updates! With significant tax law changes and IRS guidance on energy credits from the 2022 Inflation Reduction Act, you’ll need to equip yourself with the insights needed for precision in preparing your clients’ 2023 returns. Your success starts with staying informed!
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: Are there regulations guiding a practitioner’s assistance with FinCEN’s beneficial ownership interest (BOI) reporting?
A: No, there are no regulations in place. With that said, you need to look at your state laws and whether your E&O insurance covers this. Your state CPA society may have guidance as well.
Q: Is the renewable energy credit, including solar energy for homes in 2023, a refundable credit?
A: No, however, this credit may be carried over indefinitely. Since it is limited to your tax liability, amounts not used in the current year may be carried forward to future years.
Q: Is the 25% penalty on failed RMDs reduced to 10% if you take the distribution right away?
A: It must be corrected within two years for the penalty to drop from 25% to 10%. Additionally, you will want to complete Form 5329.
Q: Is a WISP (written information security plan) template available on the NATP website?
A: The template is on the NATP website and in IRS Publication 5708. Our template comes from F5708, so that is the best source.
To learn more about what you need to know for tax season 2024, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.