Norma Sharara

Nov 14, 2024 | bdo.com | Norma Sharara

For the first time, the IRS has released an official form for taxpayers to make an election under IRC Section 83(b). The new IRS Form 15620, posted on the IRS website on November 7, 2024, replaces the model letter set out in Rev. Proc. 2012-29 that taxpayers have used until now to make an 83(b) election. It is not clear whether taxpayers must use the new form to make an 83(b) election or if the IRS will continue to accept the prior method of making the election by submitting a letter to the IRS.

Oct 17, 2024 | bdo.com | Norma Sharara |Joan Vines

Employers whose employees are affected by hurricanes and other natural disasters often rush to provide assistance. “Qualified disaster payments,” as described by Internal Revenue Code Section 139, can be made as a tax-free benefit. Below are some frequently asked questions about how employers can use Section 139 to help employees cope immediately with federally declared disasters.

Oct 10, 2024 | bdo.com | Norma Sharara |Joan Vines

As 2024 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages. This is especially true for 2024 and beyond, as many employers continue to deal with remote or hybrid workforces. A fringe benefit is a form of pay (including property, services, cash, or cash equivalents) in addition to stated pay for the performance of services.

May 1, 2024 | bdo.com | Norma Sharara |Joan Vines

The IRS recently issued IR-2024-65 alerting employers to beware of companies misrepresenting nutrition, wellness, and general health personal expenses as medical care expenses for health flexible spending arrangements (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), or medical savings accounts (MSAs), collectively health spending plans.

Jan 10, 2024 | bdo.com | Joan Vines |Norma Sharara

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act of 2019) and the SECURE 2.0 Act of 2022 (collectively, SECURE) enacted a new mandate that, starting in 2024, long-term, part-time (LTPT) employees must be allowed to make salary deferrals into their employer’s 401(k) plan.