The Internal Revenue Service (IRS) released guidance (Notice 2022-53) on October 7, 2022 which delayed the implementation of the final regulations for required minimum distributions (RMDs) on inherited defined contribution and IRA accounts until 2023 and issued a special rule RMD rule for 2021 and 2022. This guidance only applies to accounts inherited beginning in 2020.
A Maryland Circuit Court invalidated the State’s tax on digital advertising (Maryland Digital Advertising Tax) on October 21, 2022.
The digital advertising tax was enacted in 2021 after the Maryland House of Delegates and Senate overrode Governor Hogan’s veto of the bill. The first-of-its-kind law imposes a tax of between 2.5% and 10% of gross revenue derived from digital advertising.
In April 2021, seven divisions of Comcast and Verizon filed the lawsuit in Maryland Circuit Court challenging the enacted law under the Internet Tax Freedom Act (ITFA) and the US Constitution’s due process, commerce clause, and the First Amendment. The judge issued a bench opinion finding the law unconstitutional and in violation of the ITFA.
The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year. Which differs from reporting prior to 2022 where 1099-K was issued if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000.
As inflation continues to rise, the IRS published this week higher Federal income tax brackets as well as higher standard deductions for 2023. Some key takeaways from the announcement are: