Renewable Fuels, Individual Tax, and Business Tax
Tax laws and regulations are subject to change. Information presented here reflects our current understanding at time of post. For additional information and inquiries, please contact us. We are available to provide assistance!
Developments in Renewable Fuels
12/15/2023: Sustainable Aviation Fuel (SAF) guidance was issued. This is a $1.25 / gal credit for SAF produced, sold, and used in the US through December 31, 2024.
Developments in Individual Tax
IRS will resume collection notices from tax years 2020 and on beginning January 2023. Although these were previously paused due to the backlog of paper returns, interest and penalties continued to accrue. Some relief available for penalties related to 2020 or 2021 filings:
- failure-to-pay penalties will be waived if a taxpayer:
- has gross income less than $400K, and
- owes less than $100K.
- Any penalties already paid will be refunded or credited towards other liabilities
- Payments in full not received by April 1, 2024, will reinstate failure-to-pay penalties
Minnesota has increased their underpayment of estimates and late payment penalties’ rate from 5% to 8%.
Minnesota one-time tax rebates issued in 2023 are Federally taxable, but will be subtracted on Form M1M, line 33. 1099s are being issued for these amounts. If a client receives a 1099 but has not received the payment, they will need to reach out to the MN DOR for reissuance.
2024 Standard Mileage Rates released:
- 67¢ per business mile
- 21¢ per medical mile
- 14¢ per charitable mile
Minnesota released 2024 Individual Income Tax Brackets, Standard Deduction, and $5,050 Dependent Exemption:
IRS has published their “Get Ready for 2023 Federal Income Tax Filing Season” site to help taxpayers prepare.
Developments in Business Tax
Minnesota PTE tax rules for 2023:
- Allow all partnerships and S-corporations with at least one qualified owner to elect into PTE. Nonqualified members of an electing passthrough will continue to not be eligible for the credit
- Require MN refunds at the individual level to be included in Federal AGI when a credit for PTE was received
IRS allows Partnerships and S-Corporations to set up a Business Tax Act online, which allows them to access information on transcripts, notices, and balances due, among other things.
Questions? Reach Out!
