Update on Beneficial Ownership Information (BOI) Reporting Requirement
On February 18, 2025, the U.S. District Court for the Eastern District of Texas ruled that the reporting requirements under the Corporate Transparency Act are back in effect. However, the Department of Treasury recognizes that reporting companies may need additional time to comply.
Changes to Be Aware of for the 2025 Filing Season
Here are some important changes to be aware of for the 2025 tax filing season…
Reminder: Protect Taxpayers with an Identity Protection PIN (IP PIN)
Tax preparers should encourage their clients to sign up for an Identity Protection PIN (IP PIN) to safeguard their federal tax returns. The IP PIN is available to all taxpayers who can verify their identity and provides an extra layer of protection against identity theft.
Electronic Filing of Returns with Duplicate Dependents: New Updates for the 2025 Filing Season
Starting with the 2025 filing season (for 2024 federal income tax returns), the IRS will allow taxpayers to electronically file a return that includes a dependent already claimed on another 2024 federal return, provided the primary taxpayer has an Identity Protection PIN (IP PIN).
What’s New with the IRS Business Online Account?
The IRS has expanded its business online account services, now allowing more business entities to participate and introducing new features to enhance accessibility and functionality.
IRS Releases Tax Inflation Adjustments for Tax Year 2025
The IRS has announced the annual inflation adjustments for federal tax provisions for tax year 2025. Below are some key adjustments:
Deadline Approaching: Beneficial Ownership Report Filing Required by January 1, 2025
Corporations, limited liability companies, and certain other businesses existing as of January 1, 2024, are required to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025.
2024 State Tax Law Changes
Here is a brief description of the tax provisions that go into effect in 2024 for States that had changes:
October 15, 2024: Final Deadline for 2023 Tax Extensions and Federal Returns Plus Disaster Relief Extensions
The final federal filing deadline for 2023 individual income tax returns is Tuesday, October 15, 2024. This deadline also applies to calendar-year C Corporations (Form 1120) and Estate/Trust returns (Form 1041). Returns filed after this date will incur a penalty of 5% of the unpaid tax per month (up to a maximum of 25%).
IRS Expands Direct File Program for 2025 Filing Season
On October 3, 2024, the IRS announced updates to the IRS Direct File Program for the 2025 tax season (Tax Year 2024). The program, which launched last year, will expand to include additional states and income types.