Recent Updates to Tax

Social Security Taxable Income Increase

In 2023, individuals will be subject to Social Security tax on employment earnings up to $160,200 annually.  The amount, an increase from $147,000 in 2022, I the wage base limit that subjects to earnings subject to OASDI tax.  The employee and the employers each will pay up to $9,932 of Social Security tax in 2023.

Per Diem Rate Increase

IRS issued Notice 2022-44 increasing special per diem rates by which taxpayers may substantiate ordinary and necessary business expenses of travel away from home, which is effective October 1, 2022.   The rate for travel to high-cost localities within the continental United States is $297.  The rate for travel to non-high-cost localities will be $204.  The portion of the rates treated as paid for meals for purpose of IRC section 274(n) is $74 and $64 for high-cost localities and all other localities, respectively.   2022-2023 Special Per Diem Rates (

FinCEN Reporting For Beneficial Ownership Information

Treasury Department issued final regulations requiring certain entities to file with FinCEN reports that identify the beneficial owners of the entity.  Under the final regulations, a beneficial owner includes any individual who, directly or indirectly, either exercise substantial control over a reporting company, or owns or controls at least 25% of the ownership interests of the a reporting company.

The final regulations provide technical definition of the terms “substantial control” and “ownership interest.”  Taxpayers should consult with their tax advisors to understand the nature and breath of their potential reporting obligations per the final regulations.

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