Tax Regulations

 As of Jan. 1, 2024, certain types of corporations, limited liability companies and other similar entities created in or registered to do business in the United States must report information to FinCEN about their beneficial owners—the persons who ultimately own or control the company. BOI reporting is not an IRS program; all inquiries must be directed to FinCEN.

The IRS and other agencies and departments have issued guidance on various aspects of clean vehicle credits. The guidance applies to vehicles placed in service starting in 2024. 

We will discuss: 

• battery component and critical mineral requirements for new clean vehicles, 
• dealer time-of-sale reports for new and previously owned clean vehicles, and 
• incremental cost guidance for the commercial clean vehicle credit calculation. 

Acronyms used:

The 2023 increases in Social Security benefits could mean that some of the beneficiaries could end up with a higher tax bill for the 2024 tax season.

In 2023, Social Security benefits were raised by 8.7 percent to compensate for the increase in cost of living, with the average retired worker receiving $1,827 a month instead of $1,681, which they got in 2022. Senior citizens who have never paid taxes on their Social Security benefits may now be required to pay taxes as the higher Social Security benefits push them into the taxable category.

Here is why:

Taxpayers for whom using the technology required to comply with electronic filing requirements conflicts with their religious beliefs may claim a religious exemption and file paper forms instead. IRS Notice 2024-18 provides updated guidance on claiming the religious exemption for taxpayers filing business returns such as Form 1120, Form 1120-S, or Form 1065.

Did you know that there are several categories of income are not taxable in the eyes of the IRS? 

One of the common misconceptions that divorced parents have is that whatever the divorce agreement says will be honored by the IRS.  This is no longer true.  Starting in 1996, the IRS came up with the custodial parent rules and Form 8332 (or its equivalent) to determine who can legally claim a dependent.   

Those who make more than $400,000 aren't the only people the IRS is looking at regardless of what you hear in the media.

The IRS believes that sole proprietors' underreporting of income and overreporting of expenses cost the government about $182 billion of projected lost revenue not paid voluntarily in tax year 2021 alone.  This figure doesn't even take into consideration underpaid or unpaid self-employment taxes.

Here are some of the suggestions that government auditors are looking at to lower noncompliance: