An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business.

We must receive all necessary documentation to prepare your return by April 1, 2023. If a client has not provided their 2022 tax information by April 1, 2023, we make no guarantee that the return will be filed by the April 18, 2023, deadline. If a client's return is not filed by April 1, 2023, we will place them on an automatic extension.

IRS Schedules K-2 and K-3, new for 2021, may need to be completed to include items of international tax relevance from the operations of a pass-through entity.

On December 23, 2022, Congress passed the Consolidated Appropriations Act of 2023. The sprawling year-end spending "omnibus" package includes two important new laws that could affect your financial planning: the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act (also known as SECURE 2.0) and the Conservation Easement Program Integrity Act.

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.