June 2023 tax updates

June 6th, 2023

Q2 Estimates Due 6/15/2023

Quarter 2 estimates are due June 15th! Estimated tax is the method taxpayers use to pay tax on income that isn’t subject to withholding or where voluntary withholding is not elected. There are multiple ways to remit payments. Estimates can be paid online, by phone or EFTPS. If paying by mail, be sure the envelope is postmarked with a date of June 15th, as that is considered the date of payment.

IRS Collection Notices to Restart

Due to a pandemic-related backlog of tax filings, the IRS began to suspend several automatic tax notices in February 2022.  The IRS has since announced that some collection notices will resume this year. While no date has been set, the IRS has estimated that between the end of May and early June, about 5 to 8 million tax payment notices will be sent to taxpayers. If you receive a tax notice, please forward that information to your tax preparer as soon as possible to discuss next steps.

New Annual Report Filing PA for LLCs

Pennsylvania Act 122   established an annual report requirement for domestic and foreign filing associations, replacing the previous requirement for an information report to be filed every ten years.  Failure to file the annual report will subject the association to administrative dissolution and loss of the protection of its name. The new annual report filing must be accompanied by a $7 filing fee. This filing requirement goes into effect January 2025.

Steps in Preparation for an ERTC Audit

The Employee Retention Credit (ERC) is a refundable tax credit for businesses that continued to pay employees while either shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020 to Dec. 31, 2021.  The IRS has begun auditing the credit taken by taxpayers and will conduct criminal investigations for claims that are more frequently turning out to be false. 

Examiners will request a copy of the Form 941 worksheets used to compute the ERTC. The following information may be requested by examiners, so be sure to have all the applicable information listed below on hand:

  • A list of all employees that received wages for the ERTC claimed.
  • Declaration regarding any employees who received wages included in the ERTC that are related individuals.
  • The amount of wages paid to each employee for the ERTC.
  • Explanation of the method used to determine the qualified health plan expenses allocated to the ERTC.

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