The Tax Changes We're Tracking

Tax and reporting season are upon us. Here are some of the emerging issues and trending topics businesses and accounts are tracking:

Employee Retention Credit:?The IRS recently issued a warning to businesses to?“carefully review” Employee Retention Credit guidelines?before claiming the credit as problems with improper claims persist. “There continue to be promoters who aggressively mislead people and businesses into thinking they can claim these credits," cautions Acting IRS Commissioner Doug O'Donnell.?

ESG disclosures:?Environmental, social and governance (ESG) issues remain a top priority for the SEC, including an?outstanding rulemaking on climate-related disclosures. SEC-regulated companies are urged to consider climate-related risks, both future and historical, in their corporate reporting.?

Staffing up:?The IRS?reportedly hired 5,000+ new assistants?to help manage call volumes. The hires are part of?new investments across the agency?to improve service.

Changes to business deductions:?Several updates to business tax deductions could affect this filing season, including?new requirements?to amortize R&D expenses over several years (as opposed to deducting the entire cost in the year the expense occurred) and?new limitations?on deductions related to asset depreciation.?