2023 Department of Revenue and Internal Revenue Service Updates

Click the links below for the latest updates and resources from the FICPA, AICPA, DOR and IRS.

Past Years

2022 Updates

FICPA & AICPA Resources

From the IRS

Tax Time Guides

Using electronic payment and agreement options for taxpayers who owe can help avoid penalties and interest
IR-2023-44, March 9, 2023 ― With the tax deadline approaching, the IRS reminded taxpayers they can avoid late filing and interest penalties by submitting their tax return and any payments due by April 18. For struggling taxpayers who can’t pay by the deadline, the IRS offers several different options to help.

IRS reminder to report all income; gig economy and service industry, digital or foreign assets and sources
IR-2023-35, March 1, 2023 — The Internal Revenue Service reminds taxpayers of their reporting and potential tax obligations on income from the gig economy and service industry, transactions from digital assets, and foreign sources or holding certain foreign assets.

Things to consider when filing a 2022 tax return
IR-2023-32, Feb. 22, 2023 — With the 2023 tax filing season in full swing, the IRS reminds taxpayers to gather their necessary information and visit IRS.gov for updated resources and tools to help with their 2022 tax return.

Special Filing Season Alerts

Taxpayers face a number of issues due to critical tax law changes that took place in 2022 and ongoing challenges related to the pandemic. The IRS continues to share updated information for people preparing to file their 2022 tax returns as well as anyone who has previous year tax returns awaiting processing by the IRS.

2022 changes that may affect your tax refund. Changes in the number of dependents, employment or self-employment income and divorce, among other factors, may affect your tax-filing status and refund.

No additional stimulus payments. Unlike 2020 and 2021, there were no new stimulus payments for 2022 so taxpayers should not expect to get an additional payment.

Some tax credits return to 2019 levels. This means that taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC) and the Child and Dependent Care Credit will revert to pre-COVID levels.

For 2022, the CTC is worth $2,000 for each qualifying child. A child must be under age 17 at the end of 2022 to be a qualifying child.
For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $560 for the 2022 tax year.
The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Visit Credits and Deductions for more details.

No above-the-line charitable deductions. During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, for tax year 2022, taxpayers who don't itemize and who take the standard deduction, won't be able to deduct their charitable contributions.

March 2 update

May 15 tax deadline extended to Oct. 16 for disaster area taxpayers in California, Alabama and Georgia

Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Previously, the deadline had been postponed to May 15 for these areas.

The current list of eligible localities and other details for each disaster are always available on the Tax Relief in Disaster Situations page on IRS.gov.

February 3 update

IRS issues statement about the taxability of state payments

The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week.

For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional. For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS. We also do not recommend amending a previously filed 2022 return.

January 17 update

January 23 is the official start to 2023 tax filing season; more help available for taxpayers this year

IRS has announced Monday, January 23, 2023, as the beginning of the nation's 2023 tax season when the agency will begin accepting and processing 2022 tax year returns.

With the three previous tax seasons dramatically impacted by the pandemic, the IRS has taken additional steps for 2023 to improve service for taxpayers. As part of the August passage of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers.

IRS completes automatic corrections of tax year 2020 accounts related to unemployment compensation exclusion; 12 million refunds issued

The IRS recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020.

The American Rescue Plan Act of 2021, which became law in March 2021, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations (up to $10,200 for each spouse if married filing joint). The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

To ease the burden on taxpayers, the IRS took steps to review the Forms 1040 and 1040-SR that were filed prior to the law's enactment to identify taxpayers who had already reported unemployment compensation as income and were eligible for the correction. The IRS determined the correct taxable amount of unemployment compensation and tax.

California storm victims qualify for tax relief; April 18 deadline, other dates extended to May 15

California storm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). The current list of eligible localities is always available on the Tax Relief in Disaster Situations webpage.

The tax relief postpones various tax filing and payment deadlines that occurred starting on January 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period.

January 6 update

IRS releases FAQs about clean vehicle credits for new, previously owned and commercial clean vehicles

IRS has issued frequently asked questions (FAQs) about clean vehicle credits for new, previously owned and commercial clean vehicles.

The Inflation Reduction Act of 2022 (IRA) made several changes to the new clean vehicle credit for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles. The IRA also added a new credit for previously owned and commercial clean vehicles.

These FAQs provide details on how the IRA revises the new clean vehicle credit for individuals and businesses, information on the previously owned clean vehicle credit for individuals and the new credit for qualified commercial clean vehicles.

IRS issues frequently asked questions about energy credits

IRS has issued FAQs about energy efficient home improvements and residential clean energy property credits.

The inflation Reduction Act of 2022 (IRA) amended the credits for energy efficient home improvements and residential energy property. These FAQs provide details on the IRA's changes to these tax credits, information on eligible expenditures, and provides examples of how the credit limitations work.

IRS updates frequently asked questions about Form 1099-K

The IRS issued a news release and updated frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions, in Fact Sheet FS-2022-41PDF.

On December 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of more than $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions.

IRS issues standard mileage rates for 2023

The IRS issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

DOR TIPs

The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) for 2023.

Corporate Interest Rates

March 7, 2023

Florida Partnership Information Return (Form F-1065) Electronic Filing Available

For tax years beginning on or after January 1, 2022, the Florida Partnership Information Return (Form F-1065) may be filed electronically. Electronic filing of Form F-1065 is available through the Internal Revenue Service’s Modernized e-File (MeF) federal/state program using approved software.

Read the full TIP here.

Current Interest Rates

Floating Rate of Interest is 9 Percent for the Period January 1, 2023 Through June 30, 2023

Oct. 26, 2022

The rate of interest for the period January 1, 2023, through June 30, 2023, is 9 percent. The daily interest rate factor to be used for this period is 0.000246575. The daily interest rate is named a factor because it is not expressed as a percentage. This rate is subject to change effective July 1, 2023.

Read the full TIP here.

Fuel Tax

Fuel Tax Rates Adjusted Beginning January 1, 2023

Nov. 17, 2022

Beginning January 1, 2023, the statewide tax rates on motor fuel and diesel fuel will increase. Florida law requires annual adjustments to the state fuel tax rates and the State Comprehensive Enhanced Transportation System (SCETS) tax rate based on the National Consumer Price Index.

Read the full TIP here.

Intangible Tax

2023 Governmental Leasehold Intangible Tax Valuation Factor Table

Jan. 6, 2023

Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida, or any of its political subdivisions, municipalities, agencies, authorities, or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.

The valuation factor table for the 2023 Governmental Leasehold Intangible Personal Property Tax Return (Form DR-601G) is provided below.

Read the full TIP here.

Sales and Use Tax

Motor Vehicle Sales Tax Rates by State

Jan. 18, 2023

Florida law allows a partial exemption of sales and use tax to be collected on a motor vehicle purchased by a resident of another state. The amount of Florida sales tax to be collected is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased in that state.

Read the full TIP here.