The IRS has released the 2025 standard mileage rate. For business travel, it is 70 cents per mile (up from 67 cents per mile in 2024). For medical-related travel, it remains 21 cents per mile (same as in 2024). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile. If you have not already enrolled or taken our seminar, it’s time to enr...
The final regulations on required minimum distributions (RMDs) from retirement accounts, issued earlier this year by the Treasury Department, are effective on January 1, 2025. The new regulations clarify the requirements for lifetime RMDs from IRAs and employer-sponsored plans and set forth the rules for RMDs for beneficiaries, after the original account owner dies. The new rules also affec...
The last days of December 2024 saw a flurry of court activity related to the requirement for companies to file beneficial owner information. After the dust settled, the requirement remains on hold for now. Here is a summary of how the injunction that stopped the filing requirement was briefly lifted and then reinstated. Again, the result is that companies are not currently required to file ben...
The IRS has indicated that it will continue to apply the domestic filing exception for eligible passthrough entities to avoid having to file Schedules K-2 and K-3 for the 2024 tax year. These schedules report information about foreign activities. Even if an entity has no foreign activities, the IRS generally requires all entities to file Schedules K-2 and K-3 if the passthrough entity has any ...
The Financial Crimes Enforcement Network (FinCEN) has announced that, due to ongoing litigation, reporting companies are not currently required to file beneficial owner information. This effectively suspends the January 1, 2025 filing due date for existing entities until the ongoing litigation ends. The alert posted to the FinCEN website includes the following: While this litigation is ong...
On December 3, 2024, the United States District Court of the Eastern District of Texas placed a preliminary nationwide injunction on beneficial owner reporting (Texas Top Cop Shop Inc. v. Garland, No. 4-24-cv-00478). The Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. Search our tax news archive ...
In Notice 2024-85, the IRS confirmed that a $5,000 threshold will apply for the 2024 tax year for Form 1099-K, Payment Card and Third-Party Transactions. Third-party payment platforms will be required to file Form 1099-K for any account if the total amount of all transactions in the account is more than $5,000 during 2024. In the same notice, the IRS also indicated that the threshold will b...
The January 1 due date for beneficial owner reporting is fast approaching. The Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. Search our tax news archive for “beneficial owner” to see our numerous earlier posts on this topic. Registration reports for entities that existed prior to January...
Practitioners must annually certify that they have a written information security plan for protecting client data when they renew their Practitioner Tax Identification Number (PTIN) each year. Recently, the IRS updated the model plan contained in its Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice. Practitioners should compare their own wri...
Practitioners constantly exchange documents with clients. Many of these documents contain a treasure trove for identity thieves, so it is vital that practitioners help to make these exchanges secure. In this period after income tax due dates, practitioners can review their systems for these transfers. Email attachments that are not encrypted with a password are extremely vulnerable to interce...
