Business Frame Weekly - IRS Issues Interim Guidance / U.S. Holiday Retail Sales Up 7.6% / Congress Passes SECURE 2.0
According to the IRS, two notices provided interim guidance on the application of the Inflation Reduction Act’s corporate stock repurchase excise tax and the new corporate alternative minimum tax.
The Mastercard SpendingPulse report unveiled that U.S. retail sales excluding automotive increased 7.6% year-over-year this holiday season, from Nov. 1 to Dec. 24. The data measures in-store and online retail sales across all forms of payment and is not adjusted for inflation.
The SECURE 2.0 Act of 2022 was passed by Congress on December 23, 2022, a piece of legislation that includes mandatory automatic enrollment, increased age for RMDs, an increase in catch-up limits, and more.
In this newsletter:
- IRS Issues Interim Guidance on IRA Provisions
- U.S. Retail Sales Grew 7.6% This Holiday Season
- Big Changes for Retirement Plans; RMD Age Raised to 73 in 2023
- Meet the All New Form 7203
- Internet Explorer 11 Ending Feb. 14, 2023 for Most Windows 10 Users
- Global Economy Faces Tougher Year in 2023, IMF’s Georgieva WarnsGlobal Economy Faces Tougher Year in 2023, IMF’s Georgieva Warns
January 3, 2023
IRS Issues Interim Guidance on IRA Provisions
The Internal Revenue Service released two notices with guidance on the new corporate alternative minimum tax, and on the corporate stock repurchase excise tax. Both relate to provisions of the Inflation Reduction Act that was signed into law in August. Notice 2023-2 provides interim guidance on the application of the IRA's corporate stock repurchase excise tax, a 1% excise tax on the aggregate fair market value of stock repurchased by some corporations. The goal of the interim guidance is to "provide certainty to taxpayers" before the new excise tax takes effect on Jan. 1, 2023. The other notice, Notice 2023-7, offers interim guidance regarding the application of the new corporate alternative minimum tax until the issuance of proposed regulations.
U.S. Retail Sales Grew 7.6% This Holiday Season
U.S. retail sales excluding automotive increased 7.6% year over year this holiday season, spanning Nov. 1 through Dec. 24, according to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment and is not adjusted for inflation. Key trends this holiday season include: E-commerce shoppers “add to cart,” Weekend shopping reigns supreme, and in-person dining at restaurants continued to show strong momentum.
Big Changes for Retirement Plans; RMD Age Raised to 73 in 2023
A grouping of retirement plan provisions, including raising the age for required minimum distributions (RMDs) and other changes, commonly called the SECURE 2.0 Act of 2022 (SECURE 2.0), were included in the 2023 Consolidated Appropriations Act (also known as the Omnibus Bill), which passed Congress on December 23, 2022, and is awaiting President Biden’s signature. SECURE 2.0 is comprehensive legislation that expands and increases retirement savings, especially for low-income and part-time employees. Key provisions include mandatory automatic enrollment, increased age for RMDs, an increase in catch-up limits, and more.
Meet the All New Form 7203
S Corporations may take you a little longer this tax season. Form 7203 is now required for shareholders of S Corps. It is important to note that the shareholder, not the S Corp, is responsible for filing the form, and it may do you well to set best practices in your firm to form required no matter what. S Corporation shareholders must file form 7203 if any of the following apply: Shareholder(s) are claiming operational losses (including carryover), a non-dividend distribution was received, sale of stock occurred, and the S Corporation was repaid for any amount of loans to shareholders.
Internet Explorer 11 Ending Feb. 14, 2023 for Most Windows 10 Users
The Internet Explorer 11 (IE11) desktop application is scheduled to be permanently disabled within most Windows 10 computers on Feb. 14, 2023 through a Microsoft Edge update, not a Windows update. All remaining devices that have not already been redirected from IE11 to Microsoft Edge are scheduled to be redirected on Feb. 14, 2023. Microsoft has indicated that the Microsoft Edge update will be delivered to all devices—both commercial and consumer—at the same time, and users will be unable to reverse the change.
Global Economy Faces Tougher Year in 2023, IMF’s Georgieva Warns
For much of the global economy, 2023 is going to be a tough year as the main engines of global growth - the U.S., Europe and China - all experience weakening activity, the head of the International Monetary Fund said on Sunday. The new year is going to be "tougher than the year we leave behind," IMF Managing Director Kristalina Georgieva said on the CBS Sunday morning news program "Face the Nation." In October, the IMF cut its outlook for global economic growth in 2023, reflecting the continuing drag from the war in Ukraine as well as inflation pressures and the high interest rates engineered by central banks like the U.S. Federal Reserve aimed at bringing those price pressures to heel.
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