Although the national price of gas is a bit lower than it was a year ago, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2023. The IRS recently announced that the 2023 cents-per-mile rate for the business use of a car, van, pickup or panel truck is 65.5 cents. These rates apply to electric and hybrid-electric automobiles and gasoline and diesel-powered vehicles.

In 2022, inflation took its toll on the American economy, generally, and the stock market, in particular. However, the increased cost of living has also increased various estate and gift tax measures. The exclusion will be $17,000 per recipient for 2023—the highest exclusion amount ever. Further, the annual amount that one may give to a spouse who is not a U.S. citizen will increase to $175,000 in 2023.

With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms:

Business taxpayers are strongly encouraged to act now and sign up for an account on myPATH. This is the new and improved online system where the Department of Revenue's customers can handle their registration, filing and payment obligations for Pennsylvania taxes. The new taxes available in the system include sales tax, employer withholding, and corporation taxes, among many others. With many important due dates - including the upcoming deadlines for monthly, quarterly, and semiannual sales tax returns - now is the time to create your myPATH account.

As year-end approaches, it is time to gather the information needed to properly report certain taxable fringe benefits provided to employees during 2022.  

Taxable fringe benefit for the value of personal use of company-owned vehicles
The value of an employee’s use of a company-owned vehicle is a taxable fringe benefit reportable on federal Form W-2 and taxable for federal income tax purposes.

The long-awaited accounting standards update (ASU) for leases is finally at our doorstep. ASU 2016-02, and its subsequently issued amendments, enacted some significant changes in accounting for leases, with the primary goal of increasing transparency and comparability among entities and disclosing key information about leasing arrangements.

There's a tax headache ahead next year for millions of Americans who use apps like Venmo or Paypal regularly, part of a little-noticed change passed in March as part of the American Rescue Plan.

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines.

An accounting standard from the Financial Accounting Standards Board (FASB) that took effect in mid-December 2022, could require your not-for-profit organization to act. Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments — was primarily intended for financial institutions. But if your nonprofit adheres to Generally Accepted Accounting Principles (GAAP), you may need to report credit losses on receivables, loans and other financial assets differently than you have in the past.