If a spending bill is not passed this week and the government shuts down on March 1st it could have significant implications for the IRS. During a shutdown many federal agencies, including the IRS operate with a skeleton staff or cease non-essential functions altogether. The exact impact on the IRS would depend on the duration and nature of the shutdown as well as any specific directives issued by the government. Possible consequences could include:
News and Updates
Home > News and Updates
22
Jan
Jan
Child Tax Credit Increasing?
A bipartisan group of Senators and Congressmen on Capitol Hill are currently negotiating a bill that includes increasing the Child Tax Credit from $2,000 to $3.6000. A vote on this bill is expected by the end of January and if passed and made retroactive for 2023 the IRS will need to update their forms and systems.
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04
Jan
Jan
Important Information For Business Owners On The Corporate Transparency Act
The Corporate Transparency Act (CTA) took effect on January 1, 2024, and imposes a new federal filing requirement for most corporations, limited liability companies (LLCs), and other business entities. Government law enforcement and security agencies will use this data to help combat money laundering, tax evasion, terrorism, and other crimes. This information will not be available to the public.
Corporations, LLCs, and other entities subject to the CTA are called “reporting companies.” People who form new reporting companies after January 1, 2024 must file a Beneficial Ownership Information (BOI) report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) within 90 days of forming the company. The owners of reporting companies created before 2024 must also file a BOI report, but they have until January 1, 2025 (but think December 31, 2024). The fine for not filing a BOI before the appropriate deadline is up to $500. Per. Day.
The BOI report must contain the following information for the reporting company:
28
Sep
Sep
Home Energy Tax Credits
If you made energy improvements to your home in 2023, you may be eligible for some new tax credits. The Inflation Reduction Act of 2022 did away with the old, and frankly useless, tax credits that only allowed you to deduct up to $500 for the lifetime of the taxpayer and replaced them with the ability to receive yearly incentives! Homeowners who improve their primary residence will find the most opportunities to claim credits, however, renters may also be able to claim credits too, as well as owners of second homes used as residences. That part is brand new and opens up lots of possibilities.
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28
Sep
Sep
Maryland Saves! And So Should You!
In September of 2022, Maryland passed a new law aimed at helping its employees better save for retirement. It’s called the Maryland Saves program and for many employees it might be the first time they’ve had the chance to contribute to a retirement plan through work.
For Employees
To be eligible for the retirement plan the employee has to be at least 18 years old and working for a Maryland employer or be a remote worker in Maryland. There is no qualification for employee status so seasonal, part-time, and full-time workers are all eligible.
17
Jan
Jan
Does My Dependent Need To File?
One of the most frequent questions we get every year is, “Is my dependent required to file a tax return?” It’s always a complicated response because it requires us to ask more questions to find out the truth. In an effort to help our clients with dependents navigate this easier, these are the filing requirements:
16
Jan
Jan
The New Tax Year is Here!
It doesn’t seem possible but here we are, the beginning of January and the start of another tax year. With calendar year 2022 now in the rear view mirror we bid farewell to all the Covid related law changes like stimulus payments and expanded child tax credits that we’ve had to navigate and we say hello to all the new law changes we have to plan for like expanded retirement savings rules under the SECURE 2.0 bill, 1099-K forms, and also new beefed up energy credits in the Inflation Reduction Act (IRA…seriously, couldn’t they have named this something else).
So without further ado, here are some quick reminders:
11
Aug
Aug
Inflation Reduction Act of 2022
If you’ve been following the news the past few weeks you’ve heard about this new bill making its way through the Senate called the Inflation Reduction Act of 2022. You’ve also probably heard that it will have tax implications attached to it as well. As this is still only just a bill up on Capital Hill and has not been signed into law yet we’re going to wait and see if there are any additions or subtractions to the tax components. Once it’s official we’ll report back with what the new law is enacting. In the meantime, if you would like to read the bill you can find it here: https://s3.documentcloud.org/documents/22128080/inflation-reduction-act-of-2022.pdf
11
Aug
Aug
Mileage Deduction Changes
The IRS recently announced an increase in the standard mileage rate for the last six months of 2022. This change will apply to taxpayers who are self-employed using their automobile for their business as well as rental property owners who travel to their property to perform or oversee maintenance on the property as well as other duties pertaining to the property. It will also apply to individuals who have exceeded the 7.5% AGI floor allowing them to deduct medical expenses as an itemized deduction.
11
Aug
Aug
Get an IP PIN!
For the last seven years or so, if you were a victim of identity theft, meaning some fraudster used yours, or one of your dependent’s, Social Security number to file a false tax return, the IRS would issue you a six digit Identity Protection Personal Identification Number (IP PIN). You would need this number entered on your tax return in order to electronically file the return or even just to paper file.
This feature is now available to everyone and here are two big reasons why you should get one and one caveat for you to keep in mind if you do!
