Tax Updates 2023: The End of the Year

When it comes to tax updates 2023, there were a number of changes.  As always, you can stay up to date by following the IRS' hot topics, or by keeping in touch with us.  Here we'll highlight a few of the most important and relevant updates you need to know about.

Energy Efficient Credits

Energy efficient tax credits became available for a number of things like heat pumps and water heaters in 2023.  Homeowners could upgrade certain appliances and parts of their home to qualified products and receive a federal tax credit.  The credit is generally $600 to $2,000, with an annual aggregate of $3,200, and is income-based as well as only on qualified purchases.

Consumer Alerts on Tax Scams

Tax scams are at an all-time high.  The IRS will never call or e-mail and threaten you or demand payment by phone.  If you're receiving phone calls, texts, or e-mails demanding immediate payment, especially by prepaid debit card, gift card, or wire transfer, it's a scam.  Protect yourselves and always contact the IRS to verify a phone call you've received, or talk to us.

For more information on tax scams, please see Tax Scams/Consumer Alerts.

IRS Ends Most Unannounced Home Visits

In a major policy reversal, the IRS will no longer show up unannounced for home visits.  Previously, the IRS could and would show up to your home or business to collect unpaid taxes.  This has ended, however, to reduce confusion and promote greater safety for IRS Revenue Officers and the general public.

Inflation Reduction Act of 2022

This major legislation made a number of changes that will affect individuals, businesses, and tax empty and government entities.  It revised a wide range of tax laws, provided additional credits and funding opportunities, and changed some of how the IRS operates.  The most notable elements were related to clean energy credits and incentives, as well as credits for electric vehicles and some tax law changes that dramatically impact certain businesses.