Posts – Journal of Accountancy
ASS salary base increases for 2022
The maximum amount of an individual’s taxable income in 2022 subject to Social Security tax is $ 147,000, the Social Security Administration (SSA) has announced. An increase of $ 142,800 for 2021, the base salary limit applies to income subject to tax, officially known as the Old Age, Survivors and Disability Insurance Tax (OASDI). Since the OASDI tax rate is 6.2%, an employee whose total salary from an employer is equal to or greater than the maximum in 2022 will pay $ 9,114 in tax, with the employer paying a equal amount. The Medicare hospital insurance tax of 1.45% each for employees and employers has no salary limit and is unchanged for 2022.
The SSA also announced a cost of living adjustment (COLA) for benefits payable in 2022 of 5.9%, compared to a COLA increase for 2021 of 1.3%.
IRS Chief Counsel Outlines R&D Credit Repayment Requirements
In Chief Counsel’s Memo 2024101F, highlighted by IRS Press Release IR-2021-203, the IRS Office of the Chief Counsel set out what information taxpayers must provide. to establish a valid request for reimbursement of a credit for the increase of research or research and development (R&D) activities, pursuant to art. 41. More specifically, taxpayers must identify all the components of the business to which the claim relates for that year. For each business component, they should identify all of the research activities performed, all of the individuals performing each activity, and all of the information that each individual sought to uncover. They must also provide the total allowable expenses for employee salaries, supplies and contract research for the year of application. The memo also described the format in which information should be submitted and the limitation periods for submitting complaints. The AICPA has asked the IRS (see comment letter) to delay implementation of these requirements beyond the expected end of a “grace period” on January 10, 2022, in order to allow sufficient time for comments and response.
The 6-year limitation period applies to the entire declaration
In Chief Counsel Advice (CCA) 202142009, the IRS Office of Chief Counsel reported that the extended six-year statute of limitations for assessment under Sec. 6501 (e) (1) (C) applies to an entire return, not just items related to Subpart F income where these items have been omitted from the return. The CCA also concluded that an agreement to extend the limitation period for valuation under Sec. 6501 (c) (4) also did not extend the limitation period for filing a request for credit or reimbursement where the agreement was entered into after the limitation period for credit or reimbursement under the Sec. 6511 (a) had expired but before the expiration of the six-year assessment period.