Michael J. Gollob, CPA
With the passing of the One, Big, Beautiful Bill, there are many changes that will begin to affect taxpayers in 2025. The IRS has provided a comprehensive list on their website with some of the bill’s provisions. These items include tax inflation adjustments, the new senior deduction, no tax on tips or overtime, and more.
Do you think you may be affected? Click the link to learn more: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions
For taxpayers who missed the tax filing deadline, they may be subject to interest and penalties if they owe. The IRS offers multiple payment options and payment plans to accommodate those who may not be able to pay immediately. In certain circumstances, taxpayers can even request penalty relief if it is their first time filing late.
Visit the irs.gov website to learn more:
https://www.irs.gov/newsroom/irs-has-options-to-help-taxpayers-who-missed-the-filing-deadline
Is the BOI already dead?
A federal judge has ruled that the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirement are unconstitutional, but only for the National Small Business Association (NSBA) and its 60,000+ members as of March 1, 2024. The ruling, however, has the potential to have nationwide consequences as other court cases may now arise as a result.
Small businesses who are required to file should continue to meet compliance requirements while waiting for official court decisions. Businesses that fail to file on time are risking significant civil fines, interest, penalties, and possible criminal penalties if the Treasury prevails in the appeals process. Filing provides peace of mind and ensures compliance, even if it means potentially losing filing fees and advisor costs. The BOI requires small business owners to submit a copy of their driver’s license before January 1, 2025.
The IRS has released some new improvements to assist taxpayers this filing season. This includes expanding in person services and a reduction in wait times on the IRS toll-free call line with a new customer callback feature. There have also been improvements to online resources such as the “Where’s My Refund?” tool and the paperless processing returns. These improvements allow the software to be accessed on mobile devices with clear and detailed updates on their returns. As the tax season begins on January 29th, 2024 be aware of the helpful new improvements IRS has prepared and how they can effectively answer any questions you may have as well as effectively streamline your return!
Visit irs.gov for more information:
The IRS announced that taxpayers will now be able to submit documents online when receiving notices by the IRS. Taxpayers can securely upload documents rather than sending them by mail, reducing overall time and tax efficiency. For more information on how the document upload tool works, click here: full article.
The IRS has adjusted tax brackets, the standard deduction, and more for 2023 to adjust for inflation. See how you could be affected in the following article from CNBC: