The 10-Year RMD rule finalized by the IRS confirms inherited retirement assets will receive different treatment depending on the recipient, starting in 2025. The post 10-Year RMD Rule Finalized By the IRS first appeared on Warady & Davis, LLP ..read more

Corporate Transparency Act (CTA) causes significant changes in federal law that impacts most privately held corporations, partnerships & more The post Don’t Forget About Corporate Transparency Act Deadlines first appeared on Warady & Davis, LLP ..read more

Although the employee retention tax credit or (ERTC), one of Congress’s responses to the effects on businesses of the COVID-19 pandemic, was legitimately claimed by by millions of businesses, fraudulent and erroneous claims abound.  ERTC eligibility requirements are strict and complex and some businesses may have received credits for which they are not eligible. Since July 2023, the IRS has taken a series of actions in response to what it has termed a “flood of ineligible claims” for the Employee Retention Tax Credit (ERTC) including launching a Voluntary Disclosure Program (VDP) which cl ..read more

You likely have heard in the news or read about the new tax legislation working its way through Congress. The Tax Relief for American Families and Workers Act of 2024 (HR 7024), passed in the House on January 31st. It is now waiting on revisions and/or vote in the Senate. If passed in the Senate, the current version of the bill will change some individual and business tax benefits that apply to tax year 2023 for which the IRS began accepting returns on January 29.’ The current bill provides increases in the child tax credit, delays the requirement to deduct research and experimentation expendi ..read more

Starting January 1, 2024, a significant number of businesses will be required to comply with the Corporate Transparency Act (CTA). The CTA was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company. It is anticipated that 32.6 million businesses will be required to comply with this reporting requirement. The intent of the BOI reporting requirement is to help US law enforcement combat money laundering, the financing o ..read more

For the second consecutive year, the IRS has postponed implementation of a new rule that would have led to an estimated 44 million taxpayers receiving tax forms from payment apps and online marketplaces such as Venmo and eBay. While the delay should spare such taxpayers some confusion, it won’t affect their tax liability or income reporting responsibilities. And the IRS indicated that it intends to begin phasing in the rule in 2024. The new reporting rule The rule concerns IRS Form 1099-K, Payment Card and Third Party Network Transactions, an information return first introduced in 20 ..read more

As another year ends with interest rates and markets in flux, one thing remains certain: Reducing your company’s tax bill can improve your cash flow and your bottom line. Below are five strategies — including some tried-and-true and others particularly timely — that you can execute before the turn of the new year to minimize your company’s tax liability. 1. Take advantage of the pass-through entity (PTE) tax deduction, if available The Tax Cuts and Jobs Act (TCJA) imposed a $10,000 limit on the federal income tax deduction for state and local taxes (SALT). In response, more than 30 states ..read more

U.S. Supreme Court rules against the IRS on critical FBAR issue The U.S. Supreme Court recently weighed in on an issue regarding a provision of the Bank Secrecy Act (BSA) that has split two federal courts of appeal. Its 5-4 ruling in Bittner v. U.S. is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts on what’s generally known as an FBAR. The full name of an FBAR is the Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts. Reporting requirement The ..read more

The IRS has issued new guidance providing transitional relief related to recent legislative changes to the age at which taxpayers must begin taking required minimum distributions (RMDs) from retirement accounts. The guidance in IRS Notice 2023-54 also extends relief already granted to taxpayers covered by the so-called “10-year rule” for inherited IRAs and other defined contribution plans. The need for RMD relief In late 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act brought numerous changes to the retirement and estate planning lands ..read more

The airwaves and internet are inundated these days with advertisements claiming that businesses are missing out on the lucrative Employee Retention Tax Credit (ERC). While some employers do indeed remain eligible if they meet certain criteria, the IRS continues to caution businesses about third-party scams related to the credit. While there’s nothing wrong with claiming credits you’re entitled to, those that claim the ERC improperly could find themselves in hot water with the IRS and face cash-flow problems as a result. Here’s what you need to know to reduce your risks. ERC in a nutshell The E ..read more