Page 61 - Small Business Taxes

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Fileid: … tions/p535/2022/a/xml/cycle01/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
publication or the How To Get Tax Help section 2020, and before July 1, 2021. The employee 16:31 - 2-Feb-2023
at the end of this publication, go to the IRS In- retention credit under section 3134 of the Inter- What's New for 2023
teractive Tax Assistant page at IRS.gov/ nal Revenue Code, as enacted by the ARP and
Help/ITA where you can find topics by using the amended by the Infrastructure Investment and The following item highlights a change in the tax
search feature or viewing the categories listed. Jobs Act, was limited to wages paid after June law for 2023.
30, 2021, and before October 1, 2021, unless
Getting tax forms, instructions, and pub- the employer was a recovery startup business. Most current standard mileage rate. For the
lications. Go to IRS.gov/Forms to download An employer that was a recovery startup busi- most current standard mileage rates, go to
current and prior-year forms, instructions, and ness could also claim the employee retention IRS.gov/Tax-Professionals/Standard-Mileage-
publications. credit for wages paid after September 30, 2021, Rates.
The following item highlights a change
Ordering tax forms, instructions, and and before January 1, 2022. For more informa- regarding this publication.
publications. Go to IRS.gov/OrderForms to tion, see chapter 2.
order current forms, instructions, and publica- Credit for COBRA premium assistance pay- Final revision. Pub. 535 will no longer be re-
tions; call 800-829-3676 to order prior-year ments is limited to periods of coverage be- vised and published. The 2022 edition will be
forms and instructions. The IRS will process ginning on or after April 1, 2021, through the final revision available.
your order for forms and publications as soon periods of coverage beginning on or before
as possible. Don’t resubmit requests you've al- September 30, 2021. Section 9501 of the
ready sent us. You can get forms and publica- ARP provides for COBRA premium assistance Reminders
tions faster online. in the form of a full reduction in the premium
otherwise payable by certain individuals and The following reminders and other items may
their families who elect COBRA continuation help you file your tax return.
Future Developments coverage due to a loss of coverage as the result IRS e-file (Electronic Filing)
of a reduction in hours or an involuntary termi-
For the latest information about developments nation of employment (assistance eligible indi-
related to Pub. 535, such as legislation enacted viduals). This COBRA premium assistance is
after it was published, go to IRS.gov/Pub535. available for periods of coverage beginning on
or after April 1, 2021, through periods of cover-
age beginning on or before September 30,
What's New for 2022 2021. For more information, see chapter 2. You can file your tax returns electronically
Advance payment of COVID-19 credits ex-
The following items highlight some changes in tended. You may no longer request an ad- using an IRS e-file option. The benefits of IRS
increased
refunds,
faster
e-file
include
vance payment of any credit on Form 7200, Ad-
the tax law for 2022. vance Payment of Employer Credits Due to accuracy, and acknowledgment of IRS receipt
Form 1099-K reporting transition period. COVID-19. For more information, see chap- of your return. You can use one of the following
The transition period described in Notice ter 2. IRS e-file options.
2023-10 delays the reporting of transactions in Research and experimental costs. Begin- • Use an authorized IRS e-file provider.
excess of $600 to transactions that occur after • Use a personal computer.
calendar year 2022. The transition period is in- ning January 1, 2022, research and experimen- • Visit a Volunteer Income Tax Assistance
tal expenditures, generally, have to be amor-
tended to facilitate an orderly transition for (VITA) or Tax Counseling for the Elderly
TPSO tax compliance, as well as individual tized over a 5-year period. A business cannot (TCE) site.
elect to deduct their total research expenses in
payee compliance with income tax reporting. A For details on these fast filing methods, see
participating payee, in the case of a third-party the current year. For more information, see your income tax package.
chapter 7.
network transaction, is any person who accepts
payment from a third-party settlement organiza- Amortization of research and experimental Form 1099-MISC. File Form 1099-MISC, Mis-
tion for a business transaction. expenditures. Specified research or experi- cellaneous Income, for each person to whom
you have paid during the year in the course of
The COVID-19 related credit for qualified mental costs paid or incurred in tax years begin- your trade or business at least $600 in rents,
sick and family leave wages is limited to ning after 2021 must be capitalized and amor- prizes and awards, other income payments,
leave taken after March 31, 2020, and be- tized ratably over a 5-year period (15-year medical and health care payments, and crop in-
fore October 1, 2021. Generally, the credit period for any expenditures related to foreign surance proceeds. See the Instructions for
for qualified sick and family leave wages, as research). For more information, see chapter 8. Forms 1099-MISC and 1099-NEC for more in-
enacted under the Families First Coronavirus Corporate alternative minimum tax reinsta- formation and additional reporting require-
Response Act (FFCRA) and amended and ex- ted in 2023. P.L. 117-169, dated August 16, ments.
tended by the COVID-related Tax Relief Act of 2022, amended section 55 to impose a corpo-
2020, for leave taken after March 31, 2020, and rate alternative minimum tax. The amendment Form 1099-NEC. File Form 1099-NEC, Non-
before April 1, 2021, and the credit for qualified applies to tax years beginning after 2022. For employee Compensation, for each person to
sick and family leave wages under sections more information, see chapter 9. whom you have paid during the year in the
3131, 3132, and 3133 of the Internal Revenue Excise tax on Black Lung Benefits now per- course of your trade or business at least $600 in
Code, as enacted under the American Rescue manent. P.L. 117-169 also amended section services (including parts and materials), who is
Plan Act of 2021 (the ARP), for leave taken after 4121 to eliminate the reduction in tax on coal not your employee. See the Instructions for
March 31, 2021, and before October 1, 2021, from mines located in the United States sold by Forms 1099-MISC and 1099-NEC for more in-
have expired. However, employers that pay the producer. The amendment applies to sales formation and additional reporting require-
qualified sick and family leave wages in 2022 in calendar quarters beginning after August 17, ments.
for leave taken after March 31, 2020, and be- 2022. For more information, see chapter 9. Gig Economy Tax Center. The IRS Gig Econ-
fore October 1, 2021, are eligible to claim a omy Tax Center on IRS.gov can help people in
credit for qualified sick and family leave wages Standard mileage rate. For tax year 2022, the this growing area meet their tax obligations
in 2022. For more information, see chapter 2. standard mileage rate for the cost of operating through more streamlined information.
The COVID-19 related employee retention your car, van, pickup, or panel truck for each The gig economy is also known as the shar-
credit has expired. The employee retention mile of business use is: ing, on-demand, or access economy. It usually
credit enacted under the Coronavirus Aid, Re- • 58.5 cents per mile from January 1, 2022, includes businesses that operate an app or
lief, and Economic Security (CARES) Act and through June 30, 2022; and website to connect people to provide services
amended and extended by the Taxpayer Cer- • 62.5 cents per mile from July 1, 2022, to customers. While there are many types of gig
tainty and Disaster Tax Relief Act of 2020 was through December 31, 2022. economy businesses, ride-sharing and home
limited to qualified wages paid after March 12, For more information, see chapter 11. rentals are two of the most popular.
Page 2 Publication 535 (2022)