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. Some practitioners and clients have been contacted by scammers who have tried to obtain sensitive information by mentioning this new requirem...
Practitioners have observed that the IRS has been sending erroneous balance-due notices indicating that payments are due for 2023 income tax returns, even though payment of all taxes due had already been made on time and in full either by check or by debit. Recently, the IRS acknowledged the error related to these notices and said that taxpayers (or their representatives) do not need to contac...
Estimated taxes for the New York pass-through entity tax (PTET) are next due on Monday, June 17, 2024. New York online services accounts (https://www.tax.ny.gov/online/) allow taxpayers to schedule all quarterly estimated tax payments for the current tax year in advance. Practitioners should recommend or assist clients with scheduling the payments in advance, so that it is not a task that will...
The IRS recently issued Notice 2024-35, which provides special relief for required minimum distributions (RMDs) for certain inherited accounts subject to the 10-year rule. Inherited accounts subject to the 10-year rule for RMDs are discussed on pages 26 to 30 of the Tax Year 2023 M+O=CPE Individual Tax Year-End Workshop Reference Book. The IRS had previously provided special relief from penalt...
As discussed in our earlier posts, most recently on March 12, 2024, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. It is important for practitioners to make sure that their affected clients are aware of this new requirement. Practitioners must also decide whether to offer services to assist ...
With the filing due date now passed, scammers are still trying to lure taxpayers and practitioners to click on links in emails or to open email attachments. Such malicious links and attachments contain spyware and other malware that can allow unauthorized access to files and/or create other serious cyber-related issues. Recent topics used to lure readers to click have included references to th...
As practitioners prepare extensions for clients, it is important to warn clients that estimates are used when preparing those extensions. Practitioners should warn clients in writing that differences between actual amounts and estimates could cause the client to owe additional taxes, including penalties and interest, when their returns are finalized.
On March 1, 2024, the Governor of New York signed a law that amends the New York LLC Transparency Act, which originally had been enacted on December 22, 2023. (The original law was discussed in our January 3, 2024 post.) The amendment to the law pushes back the effective date until 2026, so LLCs will not have to file initial reports about their beneficial owners until 2026. However, once an LL...
As discussed in our earlier posts, most recently on February 27, 2024, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. There has been much attention paid to a recent court decision related to the Corporate Transparency Act, but despite the publicity about the case, the Corporate Transparency ...
As discussed in our post on January 23, 2024, bonus depreciation for the 2023 tax year has been reduced to 80% of the cost of eligible property. (This is down from 100% bonus depreciation that applied in the 2022 tax year and in recent prior years.) The bill that could retroactively change the bonus depreciation rules for the 2023 tax year has stalled in Congress. The future fate of the bill i...
