Mark B Lackie PC

BENEFICIAL OWNER INFORMATION UPDATE:

On Friday, FinCen announced that March 21st will no longer be the deadline for the Beneficial Ownership Information Report (BOIR). FinCen is the government agency overseeing the BOIR.

And now on Sunday, the Treasury Department announced that the BOIR report will not be enforced. And a new BOIR will be coming for "Foreign Reporting Entities."

So it sounds like BOIR is currently dead for domestic companies.

Treasury Department Suspends Enforcement of BOI and Corporate Transparency Act The Treasury Department announced March 2 that it will no longer enforce the Corporate Transparency Act or the associated Beneficial Ownership Information reporting requirements.

The IRS announced today that they will start accepting e-file tax returns on Monday January 29th. Our due date this year is April 15th.

Let the fun begin.

Business returns can be efiled beginning next week.

I just filed my first Beneficial Ownership Information Report. It was a piece of cake. Of course it was for my CPA firm.

One thing about the BOIR; make sure you read the directions. For instance, CPA firms are exempt from filing the BOIR. However, the instructions clarify it to say only CPA firms registered to do SEC audits are exempt from filing. So, my CPA firm was required to file the BOIR.

I have heard of companies charging $500 to prepare and file these reports. That is a huge ripoff. It only took a few minutes to file.

FYI - the deadline for entites created before 1/1/2024 is 12/31/24. The penalty for missing this deadline is $500 per day - GULP. I will be reaching out to my business clients as I prepare their taxes to see if they want me to file their reports for them.

STANDARD MILEAGE RATES FOR 2023:

The IRS has announced the various standard mileage rates for 2023.

Business mileage - 65.5 cents per mile (cpm)
Medical - 22 cpm
Charity - 14 cpm

The IRS released this "Tax Tip" today regarding the advertising done by businesses that claim that they can make your tax debt disappear for pennies on the $.

Most of these programs are scams.

Companies who promise to eliminate tax debt sometimes leave taxpayers high and dry | Internal Revenue Service Tax Tip 2022-103, July 7, 2022 — As the old saying goes: When something sounds too good to be true, it probably is. Taxpayers with outstanding tax bills might be tempted by businesses who advertise and offer to help them reduce their tax debt.

STANDARD MILEAGE RATE INCREASE FOR 2022:

Effective July 1st, the standard business mileage rate is being increased to 62.5 cents per mile.

THe mileage rate for medical is increased to 22 cents per mile.

For travel prior to July 1st, you should use the previously announced rate for 2022.

According to the IRS Commissioner, "the IRS is adjusting the standard rates to better relect the recent increase in fuel prices. We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate."

The IRS is going high tech for taxpayers to access their account with the IRS - facial recognition.

And NO, you will not need to do facial recognition to file your tax return.

IRS will start using facial recognition to access tax information The IRS will require a video selfie to get your online tax documents.

IRS has announced the official start date for the 2022 filing season (for 2021 tax returns). Tax returns can be efiled starting January 24th. I strongly urge waiting a few weeks after that to begin filing your returns to make sure you have ALL of your documents. IF you have investments, you should wait until the end of February before considering filing returns.

2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline | Internal Revenue Service IR-2022-08, January 10, 2022 — The IRS announced that the nation's tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.

Beginning in July 2021, people with children started receiving advance payments of the Child Tax Credit. This is part of the tax law presented by President Biden earlier this year. The thought being is that people could use the money throughout the year instead of at the end of the year.

However, there is one huge caveat!!!! This is an advance on the credit meaning that you may have to pay it back if your income increases. Most people like having that large cushion and receiving a refund at the end of the year.

Accordingly, I encourage you to DO NOT accept these advance payments if you would prefer the nice refund at the end of the year OR expect an increase in income in 2021.

The IRS has setup this link to allow you to manage these payments including stopping them.

Advance Child Tax Credit Payments in 2021 | Internal Revenue Service Find details about the advance Child Tax Credit payments, including how to get them or stop getting them.

If you need promotional or marketing assistance, please call my friend Christy.

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