As we approach September 16, clients who are still on extension due to outstanding Schedules K-1 or other issues may want to make estimated tax payments by debit, instead of writing a check. Generally, tax software does not allow such debit payments to be scheduled until a client’s return is finalized and e-filed. There are alternative methods for scheduling estimated tax payments by debits,...
In early July, Treasury Secretary Janet Yellen indicated that the Treasury Department is not planning on extending the filing due date for registrations required under the Corporate Transparency Act. 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...
Beginning in August 2024, New York State will mail checks to taxpayers who claimed the Empire State child credit on their 2023 New York personal income tax returns. The payments represent a supplemental credit for the 2023 tax year and are a one-time payment that is scheduled to occur only during 2024. The checks will generally be 25% of the amount of the allowable Empire State child credit cl...
As discussed in our posts on March 5, 2024 and January 23, 2024, bonus depreciation for the 2023 tax year was 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.) There was a bill being considered by Congress that would retroactively change the bonus depreciation rules for the 2023 tax year, bu...
The Treasury Department recently issued final regulations for required minimum distributions (RMDs) to reflect changes made by both the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted in 2019, and the SECURE 2.0 Act, enacted in 2022. The final regulations are effective in 2025, and they retain the requirement that had been included in the previously proposed regulat...
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 ...
