Latest News on Tax Bill Status
The House-passed tax bill, which is of significant interest to many small business members, addresses crucial issues such as bonus depreciation and expensing Research and Development costs, among several other provisions.
Senators tried to attach the House-passed tax bill as an amendment to the must-pass Federal Aviation Administration bill, but unfortunately, the Senate did not allow any amendments to be added to the Federal Aviation Administration bill.
There is still a push for Senate leadership to allow a quick vote, but it appears the measure will fall victim to election-year politics and be pushed to 2025. The GOP hopes to take control of the Senate and add it to a much larger tax package that favors their priorities.
Important: Beneficial Ownership Info (BOI) Reporting
This serves as a reminder to members that BOI reporting in 2024 is still ongoing for most small businesses. Please pay attention to the reporting requirements for those who registered a new company in 2024 or who have experienced ownership changes in 2024.
Reporting companies report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi. The system provides a confirmation of receipt once a completed report is filed with FinCEN.
What are the reporting deadlines?
FinCEN began accepting reports on January 1, 2024.
If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.
If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
All reporting companies must file an updated BOI report with FinCEN within 30 calendar days of any change in the information reported about the company or its beneficial owners, including any change in who the beneficial owners are.
NOTE: penalties for noncompliance are significant.
Is anyone exempt from filing? Yes, although for many small businesses the path is narrow. A complete list of exemption circumstances are listed in the link to FinCEN’s website. (See Sec 1.2)
https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf
Update on Employee Retention Credit (ERC)
The problems surrounding this program have been well-documented but have mainly been caused by third-party vendors who have misled small businesses into filing incorrect, or fraudulent claims. Claims processing was suspended in September in order to attempt to catch up with the one million amended returns in backlog. The IRS has indicated at least a six month wait time for unprocessed claims.
Can I check the status of my Employee Retention Credit?
To determine the status of your claim, the IRS business assistance line is 800-829-4933 (option 3 for payroll tax questions). When researching your refund status have your social security number, federal employee identification number (EIN), tax return (Form 941-X) and tax return information readily available.
