Katherine Chung Reflects on Tax Services at Weiss and 2023 Tax Law Changes
“More than anything, I find accounting to be rewarding because I am helping my clients and making a difference in their businesses.” – Katherine Chung
Almost one year ago, Katherine Chung was selected to become a partner at Weiss CPA. She serves in the Tax Services department and has more than two decades of experience, the past five years at Weiss. She describes herself as “inquisitive with professional skepticism.”
We spoke to Katherine about her career path and advice for businesses about upcoming tax changes in 2024.
“I find accounting very fulfilling. It gives me a purpose. I am self-driven and motivated, and I like to be challenged. Accounting can be physically, emotionally, and intellectually demanding, which you might not realize unless you do it. We are talking with people about their finances, and it impacts their personal and business lives,” said Katherine.
Her areas of expertise include consulting and compliance matters for businesses taxed as partnerships and C or S corporations within the state, multi-state, and international tax regimes. She also works with individuals and on estates/trusts.
“When I started consulting with clients about their taxes, I used to be more introverted and reserved, and I would overthink everything. As I have grown in my professional career, I have become more relaxed. I have learned to become a better listener, and I have built a network of resources to provide guidance and solutions to my clients. I don’t have to have all the answers, but I am very resourceful. I try to share that perspective and my professional experiences with my mentees. I think you can learn from mistakes as well as successes, and I share both with them,” Katherine said.
She is very happy at Weiss, describing it as “the perfect size.” She likes the common values communicated to every employee and how more experienced partners have provided her with leadership training to grow and get better at her job.
Outside of work, Katherine enjoys a busy family life with her husband and two children. She pursues hobbies like interior design, pickleball, and recently, golf. She loves to travel, too.
We asked Katherine to look in her crystal ball and make some observations about upcoming changes to corporate and individual taxes for 2023 and 2024. She pointed out there has not been any landmark legislation from Congress this year unlike during the COVID years. Still, she shared some pointers about the Inflation Reduction Act, SECURE 2.0, and the Employee Retention Credit.
1. The Inflation Reduction Act that was enacted in 2022 will have an impact on 2023 tax returns. There are new or enhanced energy efficient improvements and clean energy tax credits and deductions for businesses and individuals.For businesses, there are numerous new credits related to clean energy production. Prevailing wage and apprenticeship requirements apply for obtaining the maximum credit. As an example, solar systems meeting the requirements will allow for an investment tax credit up to 30%, plus additional 10% each for domestic content bonus and energy community bonus. There are also state incentives and credits related to solar systems that vary state by state.
For individuals, the clean energy vehicle credit can provide a maximum benefit of up to $7,500 for 2023 meeting the requirements. Starting 01/01/2024, consumers will be able to choose to transfer their new clean vehicle credit of up to $7,500 and their previously owned clean vehicle credit of up to $4,000 to a registered car dealer.
2. SECURE 2.0 enacted in December 2022 has many changes to tax-advantaged retirement plans that involve required minimum distribution age rules and penalties, higher 401(k) catch-up contributions, automatic enrollment changes, emergency withdrawal flexibility, 529 plan Roth rollovers, and a student loan payment 401(k) match.
3. The Employee Retention Credit has been a big issue due to improper claims promoted by scammers that resulted in the IRS placing a moratorium on processing further claims through at least 12/31/2023. The IRS also recently provided guidance with steps to withdraw the ERC claims for those with improper claims that want to return or withdraw their claim. The IRS steps for withdrawing can be found here.
Keep in mind that all tax advice is specific to and customized for that client.
Katherine also shared, “I would advise businesses and individuals to talk to their tax advisors and accountants before the year ends to take advantage of planning opportunities they can address in 2023. For some, it might be a quick call, but others could be a potential opportunity for tax savings. There are specific requirements to be met and Weiss can provide guidance on these matters.”
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