e-News for Small Business October 12, 2022
Tax Resources for Small Business
Small Business and Self-Employed One-Stop Resource
Small Business Forms & Instructions
e-File for Businesses and Self-Employed
Other Resources
Tax Information for Charities
and Other Non-ProfitsIssue Number: 2022-15
Inside This Issue
- Tax relief: Hurricane Ian, Fiona, Alaskan storms, dyed fuel and drought
- Don’t miss this important October 17 tax extension deadline
- Understanding taxes when a family member signs the paycheck
- October FBAR extension deadline nears for foreign bank and financial account holders
- Improperly forgiven Paycheck Protection Program loans are taxable
- Taxpayer Bill of Rights: America’s taxpayers are entitled to a fair and just tax system
- An IRS online account is simple, safe, and secure
- Other tax news
1. Tax relief: Hurricane Ian, Fiona, Alaskan storms, dyed fuel and drought
The IRS released guidance on tax relief for taxpayers impacted by severe weather conditions in multiple areas of the country.
Hurricanes Ian and Fiona and Alaskan storms
Victims of severe weather throughout the Carolinas, Florida, in parts of Alaska and in all 78 Puerto Rican municipalities now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments that were due October 17, 2022.
Dyed fuel
The IRS, in response to continued disruptions resulting from Hurricane Ian, will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway in the state of Florida. This penalty relief expands previously issued penalty relief that applied only to emergency vehicles. The IRS is closely monitoring the situation and will provide additional relief as needed.
Farmers and ranchers
Farmers and ranchers forced to sell livestock because of droughtconditions may have more time to replace their livestock and defer tax on any gains from the forced sales. The IRS announced a one-year extension which gives eligible farmers and ranchers until the end of their first tax year after the first drought-free year to replace the sold livestock.
2. Don’t miss this important October 17 tax extension deadline
The IRS reminds taxpayers who requested an extension to file their 2021 tax return to do so by Monday, October 17, 2023.
But, for those who are ready to file, there is no need to wait until that date.
3. Understanding taxes when a family member signs the paycheck
Many people work for a family member, whether it’s a child helping out at their parent’s shop or spouses running a business together. The tax implications depend on the relationship and the type of business.
4. October FBAR extension deadline nears for foreign bank and financial account holders
The IRS reminds U.S. citizens, resident aliens and domestic legal entities that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is October 15, 2022. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network’s (FinCEN) website.
The FBAR news release also provides information about significant civil and criminal penalties.
5. Improperly forgiven Paycheck Protection Program loans are taxable
The IRS issued guidance addressing improper forgiveness of a Paycheck Protection Program loan (PPP loan). The guidance covers when the taxpayer is not eligible to exclude the forgiveness from income and what they should do.
6. Taxpayer Bill of Rights: America’s taxpayers are entitled to a fair and just tax system
Tax fairness means the tax system is equitable to all citizens. This is not just a concept - it is the law. The right to a fair and just tax system is one of 10 rights in the Taxpayer Bill of Rights, which clearly outline the fundamental rights of every taxpayer.
7. An IRS online account is simple, safe, and secure
An IRS online account makes it easy for people to quickly get the tax planning info they need. With the same ease that taxpayers have when banking online or placing an online shopping order, they can log in and get the latest on their payment history, balance, and more.
8. Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
• IRS updates answers to states and local governments on taxability and reporting of payments from Coronavirus State and Local Fiscal Recovery Funds
• IRS reports significant increase in texting scams; warns taxpayers to remain vigilant
• IRS Appeals revises initial contact letters as part of effort to enhance the taxpayer experience
• IRS announces 2023 Tax Counseling for the Elderly and Volunteer Income Tax Assistance Program Grants
• IRS asks for comments on upcoming energy guidance
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