2024 Filing Season Update
The IRS will begin accepting individual tax returns on January 29th. If you are looking to file your return as early as possible, there are a few things to remember:
Certain credits and deductions may be affected by the current tax legislation making its way through the Congress
Since some of these benefits will be applied retroactively, it will be best to wait to file your return if they pertain to you
Certain federal forms and schedules may not be finalized by January 29th. If the final version of a form included with your return is not available, you will need to wait to file until it is released
Certain state forms and schedules may not be finalized by January 29th. Even if all federal forms are available, you will need to wait to file your state return until the final version is released
This varies by state, so please check with your state for updated timelines
If you electronically file your return and are due a refund:
The IRS normally processes refunds within 21 business days
You can view the status of your federal refund using the “Where’s My Refund” tool on the IRS website
Individual states process refunds at different rates, but generally take longer to process than federal refunds
No matter when you file, the tax owed must be paid by April 15, 2024
Remember to make separate payments for federal and state tax owed, as they are paid to different tax agencies
Outside of filing season, the IRS has also made some other announcements that will affect taxpayers during the 2024 tax year:
Form 8300 - Cryptocurrency
The IRS is not requiring businesses to complete Form 8300 for certain transactions involving digital assets and cryptocurrency. The new policy was scheduled to take effect on January 1, 2024 and would require businesses to complete Form 8300 if they accepted more than $10,000 of digital assets in a single transaction.
While it is expected these requirements will go into effect at some point, the exact timeline moving forward is unclear. I will include an update once final regulations are released, as it could impact professional gamblers that use digital assets in the course of their betting. It is important to note this filing requirement only impacts professional gamblers who receive digital assets (cashing out from an online gaming site). This does not apply to those who send digital assets (depositing on such sites).
IRS to Simplify Tax Notices
The IRS announced it will begin to redesign over 200 notices. The initiative will roll out over the next two years with the goal of simplifying the response process for individual taxpayers. This is much needed, as current notices are convoluted and it is often difficult for taxpayers to discern what is being asked of them.