Pyka Tax & Consulting Services, LLC

Just because the government is shut down does not mean your taxes are not due 😂. I actually had a client ask me that.

The extended deadline for 1040s is October 15th. Just a reminder that we work on a 2 week turnaround time during busy times…this means your documents need to be in today or the latest tomorrow to make that deadline if you haven’t sent them in yet!

Almost there, guys!

The House has passed Trump’s Big Beautiful Bill by one vote. What does this mean for you at this point?

As of this moment, we still say hold off before counting anything to be set in stone. The Senate is promising to make changes to the bill prior to passage.

As of now, the bill has provisions in it that will impact:

-The State and Local Tax cap for taxpayers making less than 500k
-Federal tax on tips for those under certain income thresholds
-Creation of MAGA savings accounts for those 8 years old and younger
-Extension of TCJA tax rates
-Making permanent 199A deduction at a new rate of 23%
-The current child tax credit (minor increase)
-The additional deduction for seniors (minor increase)

We anticipate a lot of changes prior to the bill passing the Senate, which as of now is aiming to move forward later this summer. We are keeping an eye on everything and will let you know once anything has officially passed.

The IRS officially started accepting individual tax returns today. We have limited availability for new clients this season - please contact us soon to get on the list.

Wishing all of our clients and friends a Happy Thanksgiving. Thankful for you all.

Just a reminder to all my clients and friends (because I care about you and your future), if something seems too good to be true it probably is.

We are getting so many questions and in today’s world it seems many are making quick, rash decisions with money. Please, only trust professionals with your money. When investing, please do research before writing a check to Joe Schmo because he said all the money is in XYZ at the moment. Also just because Sandy at the drug store told you there’s 20,000 the IRS is giving everyone and her tax refund was 3 million does not mean it is legit, please ask before you act. Most advisors or anyone in any financial field would never recommend pulling all of your money out of the market because it had a bad day or month or recommend putting all of your money 100% into any investment ever. We all know that history is the greatest teacher and balance is key.

I am not an investment advisor, but I do work a lot with financial information and various professionals in the financial and real estate industries. And I see the impact decisions make on not only your taxes, but how they impact your financial future as well. I personally trust the good old faithful rule which is “Do not put all of your eggs in one basket.” It is always important to diversify any investments you have and trust your intuition when it comes to someone promising you otherwise.

If you ever have questions pertaining to taxes and a potential financial move, please reach out. I’m always here to chat through implications before you make any big moves.

A loaded question we keep getting…can you tell me where the candidates stand on tax policy?

This can be an ever evolving topic. (And please remember that our government is set up in a way that Congress and the President have to work together to pass actual legislation when the time comes).

Both President Biden and former President Trump have some bold ideas when it comes to attacking the nation’s growing debt and dealing with who pays via taxes.

Here is a brief summary of the highlights:

President Biden’s tax plan:
-Increase the tax rate for highest individual earners to 39.6%.
-Increase tax on capital gains to ordinary income rates for those who have income in excess of 1 million.
-Tax unrealized capital gains at death for taxpayers who have assets in excess of a 5 million threshold.
-Limit retirement contributions for those with large IRA balances.
-Increase the Net Investment tax to include non-passive income from pass-through activity.
-Extend ARPA Child Tax Credits through 2025 and make the credit refundable permanently.
-Increase the corporate tax rate from 21% to 28%
-Increase the new stock buyback tax on corporations from 1-4%
-Further limit deductibility of highly compensated corporate officers

Former President Trump’s tax plan:
-Impose a universal baseline tarriff on all US imports.
Impose a 60% tarriff on imports from China.
-Lower the corporate tax rate from 21% to 20% (this may have changed).
-Make individual and estate tax cuts of the TCGA permanent.
-Tax large private university endowments.
-Exempt tips from income taxes.
-Considering replacing income tax entirely with tariffs.

If you are reading all of this and freaking out, please don’t panic. These are likely going to be baselines and both sides would need a lot of support to turn into official law. Both sides have items that are potentially very impactful and somewhat scary to a lot of our clients, but please rest assured that we do still have a system of checks and balances in place. We will be here, whatever happens, to help guide all of you should anything of this capacity ever occur. Please also remember that things can change daily in politics. It’s a crazy world out there, folks.

The IRS has released relief information for Texans in the areas impacted by recent storms. Filings due after April 26th including extended returns and estimated payments now have until November 1st to be filed for residents of certain counties. Any penalties assessed for filings due during this period should be automatically abated. *This only applies to filings due after April 26th, and does not include amended returns.

The counties include Bell, Calhoun, Collin, Cooke, Denton, Eastland, Guadalupe, Hardin, Harris, Henderson, Jasper, Jones, Lamar, Liberty, Montague, Montgomery, Polk, San Jacinto, Trinity, Tyler, Walker and Waller.

*Please note: Dallas County is not currently listed.

IRS announces tax relief for taxpayers impacted by severe storms, straight-line winds, tornadoes and flooding in Texas | Internal Revenue Service TX-2024-13, May 28, 2024 — The Internal Revenue Service announced today tax relief for individuals and businesses in Texas that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 26, 2024. These taxpayers now have until Nov.1, 2024, to file various fede...

Happy Tax Day to our clients and friends! We are so grateful to have made it another season together.

We have filed all extensions and/or returns and are ready for a bit of R&R! What are your favorite ways to celebrate? 🎉🎉🎉

We are keeping a close eye on potential changes that may impact the 2023 filing season. This week, a bill was initially passed in the House (Ways and Means) extending a few key expired tax breaks. It has not passed the Senate and will likely go through revisions but lawmakers are trying their best to pass prior to opening tax season (or as close as possible to) the 29th to avoid the need for amending returns.

There are still negotiations and likely changes to items such as child tax credit expansion. Initial items were in the bill that have been removed so that part is not in stone and not likely to be just yet.

Items that are likely to pass are extension of 100% bonus depreciation for business assets, deduction of R&D expenses in one year vs 5, and at a minimum increasing the child tax credit for inflation in 2024/2025. These will all be paid for with increased focus on penalties for ERC Claims.

There have been so many fraudulent ERC claims. If you know the claim may not have been legitimate, it is best to withdraw any claim unpaid and return any claim that was paid. Penalties will be hefty and enforced. Also, businesses who claim ERC after the fact must file amended income tax returns decreasing their wage deduction for any ERC amounts received. Legislators will likely be extending the typical statute for assessment of penalties on ERC related items to 6 years.

The IRS will officially start accepting e-filed returns on Monday, January 29th. Get in contact with us today to get the ball rolling on your 2023 filings.

One of the big questions we are getting lately is what is BOI?

BOI, or Beneficial Ownership reporting, is a new requirement from the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Reports are required for all entity types registered/created by filing formation documents with the state (foreign and domestic). Reports are due 90 days after entity creation for new entities, and by the end of the year for previously existing companies. Failure to file penalties are hefty at $500 per day late up to $10,000 maximum. Criminal penalties can also be assessed, so you definitely want to make sure you are in compliance with these new reports.

For security and liability reasons, we will only be assisting current established clients with BOI reporting. We will provide information/instructions to inquiring prospective clients at our consulting rate, but will not be preparing BOI reports for any new clients.

Happy New Year clients and friends! We hope that you are enjoying some time with family and not worrying too much about taxes just yet.

Informational emails will be coming out soon to our current clients so be on the lookout for those.

We’ve also had a lot of people requesting information on newly required BOI reports for entities and if that will be an added service we provide. The short answer is yes, but more info will be coming in the tax season email and will post some info here later this week! It’s almost go-time!