New Tax Laws - Linkenheimer LLP CPAs & Advisors

Appeals Court Reinstates Injunction Halting BOI Enforcement

On December 26, 2024, the Fifth Circuit Court of Appeals reinstated a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA), temporarily pausing the requirement for companies to disclose their Beneficial Ownership Information (BOI) to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

This decision reverses an earlier ruling by the same court, which had lifted the injunction and allowed the CTA’s enforcement to proceed. The reinstated injunction means that the January 13, 2025, deadline for companies to submit their BOI reports is currently on hold while the court decides the case.

Key Points to Know:

What is the Corporate Transparency Act?
Enacted in 2021, the CTA requires corporations and limited liability companies to report information about their beneficial owners to FinCEN to combat financial crimes like money laundering.

Why was the injunction reinstated?
The court seeks to maintain the status quo while considering constitutional arguments raised by opponents, who claim the law infringes on privacy and imposes unnecessary burdens on small businesses.

What does this mean for businesses?

- January 13, 2025 Deadline on Hold: Companies are not required to file BOI reports until further […]

By Linkenheimer LLP|2024-12-27T18:28:06+00:00December 27th, 2024|filing deadline, New Tax Laws, News|0 Comments

Federal Disaster Tax Relief Act Enacted

President Biden has signed the Federal Disaster Tax Relief Act (H.R. 5863; P.L. 118-148). As we previously reported here, the bill:

Retroactively excludes from gross income qualified wildfire relief payments paid to individuals as compensation (other than insurance payments) for losses, expenses, or damages for any wildfire declared a federal disaster after December 31, 2014 (§3, H.R. 5863);
Treats disaster relief payments to victims of the East Palestine, Ohio, train derailment as excludable IRC §139(b) payments (§3, H.R. 5863); and
Allows individual victims with a net disaster loss from any taxable year to claim an enhanced personal casualty loss under IRC §165(h) for certain federally declared disasters that occurred after February 24, 2021. (§2, H.R. 5863)

We anticipate that the IRS will issue additional guidance shortly, and we will keep you posted as updates become available.

By Linkenheimer LLP|2024-12-18T16:43:58+00:00December 18th, 2024|disaster, Fire Relief Info, New Tax Laws, News|0 Comments

Nationwide Injunction Halts Beneficial Ownership Information Reporting Requirements

A federal district court in Texas has issued a nationwide preliminary injunction blocking the enforcement of the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This decision, made in the case Texas Top Cop Shop v. Garland (December 3, 2024, U.S. Dist. Ct., Eastern District of Texas, Case No. 4:24-CV-478), has significant implications for businesses across the United States.

Background on the Corporate Transparency Act

The CTA, enacted to combat money laundering and enhance financial transparency, requires most U.S. corporations, limited liability companies (LLCs), and similar entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Initially, this reporting requirement was due by January 1, 2025, with penalties for non-compliance.

Court Ruling

The court ruled that Congress exceeded its constitutional authority by enacting the CTA, stating that it infringed upon states’ rights to regulate business entities. As a result, the court issued a nationwide injunction prohibiting FinCEN from enforcing the reporting deadline.

The court’s opinion emphasized that the CTA overstepped federal authority, making it an unconstitutional directive. This ruling effectively halts the implementation of BOI reporting requirements until further notice.

Implications for Businesses

For now, businesses are not required to file […]

By Linkenheimer LLP|2024-12-06T16:53:49+00:00December 6th, 2024|business, corporation, New Tax Laws, News|0 Comments

Upcoming Beneficial Ownership Reporting Requirement under the Corporate Transparency Act (CTA)

Starting January 1, 2024, most U.S. entities must comply with the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting requirement, implemented by FinCEN to enhance financial transparency and combat crime. This requirement mandates corporations, LLCs, and similar entities to report information about their beneficial owners—individuals who hold significant control or at least a 25% ownership stake. Required disclosures include each beneficial owner’s name, address, date of birth, and a unique identification number, such as from a passport or driver’s license.

Entities that are newly formed or registered in 2024 in the U.S. must file their BOI reports within 90 days of creation (effective 2025 new entities will only have 30 days), while existing entities must comply by January 1, 2025.

Exceptions to the Requirement

There are several exceptions to the requirement, one common exemption is for a “Large Operating Company” which is a company with more than 20 full-time employees, gross receipts or sales over $5 million, and a physical presence in the U.S. Additionally, regulated entities like banks, publicly traded companies, and insurance companies are also excluded from the mandate.

Pending Legal Challenges

While the […]

By Linkenheimer LLP|2024-10-09T17:22:28+00:00October 8th, 2024|business, New Tax Laws, tax form|0 Comments

2024 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

Note: Certain tax-filing and tax-payment deadlines may be postponed for taxpayers who reside in or have a business in a federally declared disaster area.

Tuesday, October 1

The last day you can initially set up a SIMPLE IRA plan, provided you (or any predecessor employer) didn’t previously maintain a SIMPLE IRA plan. If you’re a new employer that comes into existence after October 1 of the year, you can establish a SIMPLE IRA plan as soon as administratively feasible after your business comes into existence.

Tuesday, October 15

If a calendar-year C corporation that filed an automatic six-month extension:
- File a 2023 income tax return (Form 1120) and pay any tax, interest and penalties due.
- Make contributions for 2023 to certain employer-sponsored retirement plans.

Thursday, October 31

Report income tax withholding and FICA taxes for third quarter 2024 (Form 941) and pay any tax due. (See […]

By Linkenheimer LLP|2024-10-02T15:08:36+00:00October 2nd, 2024|New Tax Laws, News, tax deadlines|0 Comments