IRS Encourages Small Businesses to Prepare for Reporting Changes in 2023

irs encourages small businesses to prepare for reporting changes in 2023

The Internal Revenue Service (IRS) is urging small businesses to plan ahead to take advantage of tax-saving opportunities and prepare for reporting changes in 2023. As part of National Small Business Week, the IRS highlights potential tax benefits and reporting adjustments that could affect businesses next year.

The Inflation Reduction Act (IRA) includes provisions to help small businesses save on energy costs, such as a 30% tax credit for switching to solar power and credits for energy efficiency improvements in buildings. The Clean Commercial Vehicle Credit also offers tax credits for the purchase of electric and fuel cell commercial vehicles.

Eligible employers who missed claiming the Employee Retention Credit (ERC) for 2020 and 2021 can still file an amended federal payroll tax return. The IRS warns of ERC scams and recommends consulting a trusted tax professional for assistance. Educational assistance programs can now be used by employers to help pay employee student loan obligations until December 31, 2025.

Starting in 2023, businesses receiving over $600 in income from third-party settlement organizations, including payment apps, may receive Forms 1099-K. The IRS emphasizes the importance of good recordkeeping and encourages businesses to explore additional tax benefits, such as the home office deduction and the health insurance deduction for self-employed individuals. For more information and resources, visit the Small Business Week webpage.

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Joshua Sophy Joshua Sophy is the Editor for Small Business Trends and has been a member of the team for 16 years. A professional journalist with 20 years of experience in traditional media and online media, he attended Waynesburg University and is a member of the Society of Professional Journalists. He has held roles of reporter, editor and publisher, having founded his own local newspaper, the Pottsville Free Press.