Electronic Filing Threshold Reduction, Digital Assets Covered by PayrollOrg in SSA/IRS Reporter

The SSA/IRS Reporter, Second Quarter 2023, contains two articles written by PayrollOrg. The first article is “IRS finalizes rules to lower electronic filing threshold begin in 2024” and the second article is “IRS issues memo on valuating digital assets.”

The first article explains the IRS’s rules to reduce the threshold for filing business information returns electronically from 250 to 10 for returns filed after December 31, 2023. The lower threshold reflects changes passed by Congress in the Taxpayer First Act of 2019. The final regulations also withdraw regulations the IRS proposed in 2018 to amend the rules for determining whether information returns must be filed electronically.

The second article is about how to value digital assets for federal tax purposes. The IRS issued a memo with a closer look into how the IRS approaches digital assets and the requirement for a qualified appraisal for a charitable contribution should a taxpayer donate a digital asset. The IRS’s definition of the term “digital asset” is evolving and expanding.

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Adam Prinzo is the Assistant Manager of Government Relations at the APA.