News - Linkenheimer LLP CPAs & Advisors

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

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

Important Update: The Corporate Transparency Act and Its Impact on Your Business

Starting January 1, 2024, a significant change will affect many businesses. The Corporate Transparency Act mandates corporations, limited liability companies (LLCs), limited partnerships, and other entities such as non-U.S. companies that register to do business in the U.S. through a filing with a Secretary of State to file a report with the Financial Crimes Enforcement Network (FinCEN). This report will disclose detailed information about the entity’s “beneficial owners.” Most entities must file these reports by January 1, 2025. However, new entities formed in 2024 must file the report within 90 days of the entity’s formation.

Key Points to Note:

Purpose: This federal initiative aims to combat money laundering and tax evasion by shedding light on the actual individuals behind corporate entities.
Reporting Requirements: The information required includes the legal name, residential address, date of birth, and an identification number (from a passport, driver’s license, or state ID) of the beneficial owners; the entity will also have to provide an image of any of these forms of documentation.
Penalties for Non-Compliance: Failing to report or update this information can lead to substantial fines, including fine of up to $500 per day until the violation […]

By Linkenheimer LLP|2024-01-04T17:01:35+00:00January 4th, 2024|business, llc, New Tax Laws, News, s corp|0 Comments

That Email or Text from the IRS: It’s a Scam!

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly.

Important: The IRS will never contact you by email, text or social media channels about a tax bill or refund. Most IRS contacts are first made through regular mail. So if you get a text message saying it’s the IRS and asking for your Social Security number, it’s someone trying to steal your identity and rob you. Remember that the IRS already has your Social Security number.

“Scammers are coming up with new ways all the time to try to steal information from taxpayers,” said IRS Commissioner Danny Werfel. “People should be wary and avoid sharing sensitive personal data over the phone, email or social media to avoid getting caught up […]

By Linkenheimer LLP|2023-07-05T19:17:36+00:00July 5th, 2023|fraud, irs, News|0 Comments