19 Dec 2024
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BOI Reporting Deadline Extension Proposed in House Budget Bill

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
BOI Reporting Deadline Extension Proposed in House Budget Bill

Good news for small businesses: The deadline for filing Beneficial Ownership Information (BOI) reports might be extended by a year. The House of Representatives has proposed a continuing resolution that includes this extension, pushing the deadline from January 1, 2025, to January 1, 2026, for companies formed or registered before January 1, 2024. . This 1,500-page funding bill, aimed at preventing a government shutdown by extending funding through to March 14, 2025, is up for a vote soon. Section 122 of the document specifically addresses this extension, amending the existing law to reflect the new deadline. . AICPA's Role in Advocacy . Melanie Lauridsen, Vice President of Tax Policy & Advocacy at the AICPA, celebrated this move in a LinkedIn post, noting it as a long-fought victory. The AICPA, along with...

17 Dec 2024
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To File or Not to File: Navigating BOI Reporting After the Texas Injunction

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
To File or Not to File: Navigating Beneficial Ownership Information Reporting after the Texas Injunction

The landscape of compliance with the Beneficial Ownership Information (BOI) Reporting requirement under the Corporate Transparency Act (CTA) has changed dramatically following a recent federal court decision. Here’s what businesses need to know about the current status and next steps. . Background on the Corporate Transparency Act The CTA mandates that certain businesses report detailed information about their beneficial owners, officers, and control persons to the Financial Crimes Enforcement Network (FinCEN). This law, aimed at curbing money laundering, terrorist financing, and tax evasion, was set to see its first major compliance deadline on January 1, 2025. However, the path to enforcement has hit significant roadblocks. . Legal challenges have been mounting, with multiple lawsuits questioning the constitutionality of the CTA. A pivotal moment came when the U.S. District Court for...

06 Dec 2024
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With Reporting Deadline Imminent, Court Puts BOI Reporting on Hold

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
With Reporting Deadline Imminent, Court Puts BOI Reporting on Hold

In a groundbreaking decision, a federal district court in Texas has issued a nationwide preliminary injunction that blocks the enforcement of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA). This ruling comes from the case Texas Top Cop Shop v. Garland (December 3, 2024, U.S. District Court, Eastern District of Texas, Case No. 4:24-CV-478). . The court's decision is centered around the assertion that Congress overstepped its legislative bounds with the CTA. The judge determined that the law intrudes on the states' rights to regulate business entities within their jurisdiction, thereby deeming it unconstitutional. As a direct result, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) is now barred from enforcing the upcoming January 1, 2025, deadline for reporting companies to submit their beneficial...

13 Oct 2024
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IRS Accelerates Work on Employee Retention Tax Credit Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Acellerates Work on ERTC Claims

As Reported via IR-2024-263 on 10/10/2024 The Internal Revenue Service announced on 10/10/2024 continued progress on Employee Retention Tax Credit claims, with processing underway on about 400,000 claims, representing about $10 billion of eligible claims.     Work on the claims for small businesses and others is ongoing as the agency continues to navigate a large volume of claims from the complex pandemic-era credit. A significant number of the Employee Retention Tax Credit (ERTC) claims came in during a period of aggressive marketing by promoters, leading to a large percentage of improper, ineligible claims.     “The IRS understands the vital importance of Employee Retention Tax Credits payments for struggling small businesses, and we are continuing to make important progress on one of the most complex tax administration provisions we’ve...

29 Sep 2024
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Treasury, IRS Issue Additional Guidance on the Alternative Fuel Vehicle Refueling Property Credit

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
Treasury, IRS Issue Additional Guidance on the Alternative Vehicle Refueling Property Credit

As reported via IR-2024-240 on 9/18/2024 The Department of Treasury and Internal Revenue Service issued proposed regulations to provide guidance for the Alternative Fuel Vehicle Refueling Property Credit (the tax credit related to the installation of EV chargers). The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. The changes apply to qualified alternative fuel vehicle refueling property placed in service after 12/31/2022, and before 01/01/2033. Business vs Non-Business Property Property Subject to Depreciation The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year.  The credit is limited to $1,000 per item of non-depreciable property Property Not Subject to Depreciation The credit amount for depreciable property is 6% of the cost of the...

11 Aug 2024
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IRS Shares Additional Warning Signs of Incorrect Claims for ERTC

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Shares Additional Warning Signs of Incorrect Claims for ERTC

As appearing in IR-2024-198 Businesses urged to proactively resolve erroneous claims to avoid penalties, interest, audits As the Internal Revenue Service intensifies work on the Employee Retention Tax Credit (ERTC), the agency today shared five new warning signs being seen on incorrect claims by businesses.   The new list comes from common issues the IRS compliance teams have seen while analyzing and processing ERTC claims. The new items are in addition to seven problem areas the IRS previously highlighted.  The IRS urged businesses with pending claims to carefully review their filings to confirm their eligibility and ensure credits claimed don’t include any of these 12 warning signs or other mistakes. Businesses with these indicators should talk to a trusted tax professional and consider using special ERTC Withdrawal Program that remains available. Business considering...

11 Aug 2024
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IRS Resumes Processing of ERTC Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Resumes Processing of ERTC Claims

As appearing in IR-2024-203 Agency accelerates work on complex credit as more payments move into processing.  Vigilance, monitoring continues on potentially improper claims On 8/8/24, the Internal Revenue Service announced additional actions to help small businesses and prevent improper payments in the Employee Retention Tax Credit (ERTC) program, including accelerating more payments and continuing compliance work on the complex pandemic-era credit that was flooded with claims following misleading marketing.  The IRS is continuing to work denials of improper ERTC claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse. The findings of the IRS review, announced in June, confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERTC claims in the current inventory of ERTC claims.  In...

25 Jun 2024
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IRS Resumes Processing of Employee Retention Tax Credit Claims

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
IRS Resumes Processing of Employee Retention Tax Credit Claims

As reported in IR-2024-169 IRS enters next stage of Employee Retention Tax Credit work; review indicates vast majority show risk of being improper Highest-risk claims being denied, additional processing to begin on low-risk claims; heightened scrutiny and review continues as compliance work tops $2 billion; IRS will consult with Congress on potential legislative action before making decision on future of moratorium Following a detailed review to protect taxpayers and small businesses, the Internal Revenue Service on June 20, 2024 announced plans to deny tens of thousands of improper high-risk Employee Retention Tax Credit claims while starting a new round of processing lower-risk claims to help eligible taxpayers.  “The completion of this review provided the IRS with new insight into risky Employee Retention Tax Credit activity and confirmed widespread concerns...

21 Jan 2024
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Treasury and IRS Issue Guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
Treasury and IRS Issue Guidance on the Qualified Alternative Fuel Vehicle Refueling Property Credit

As reported via IR-2024-16 on 1/19/2024 The Internal Revenue Service and the Department of the Treasury today issued Notice 2024-20 to provide guidance on eligible census tracts for the qualified alternative fuel vehicle refueling property credit (the tax credit applicable to the installation of EV chargers) and to announce the intent to propose regulations for the credit. The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. The changes apply to qualified alternative fuel vehicle refueling property placed in service after December 31, 2022 and before January 1, 2033. Business vs Non-Business Property Property Not Subject to Depreciation The credit amount for property not subject to depreciation is 30% of the cost of the qualified property placed in service during the tax year.  The credit is...

14 Jan 2024
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FinCEN Alerts BOI Reporting Companies to Fraud Attempts

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
FinCEN Alerts BOI Reporting Companies to Fraud Attempts

As the Financial Crimes Enforcement Network (FinCEN) opens its beneficial ownership information (BOI) reporting portal, its BOI webpage, reflects a fraud alert for individuals and entities who may be subject to beneficial ownership information (BOI) reporting. According to the FinCEN fraud alert, individuals and entities that may be subject to the beneficial ownership information (BOI) reporting requirements have been receiving fraudulent correspondence, via email or traditional mail, that appears as though it came from FinCEN.  In some instances, the fraudulent correspondence may be titled "Important Compliance Notice" and ask the recipient to click on a URL or to scan a QR code. Be advised that e-mails or letters such as this are fraudulent, according to the alert. FinCEN cautions individuals that it does not send unsolicited requests for information,...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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