Happy Holidays from Alisa Na CPAs and Advisors!

With 2025 approaching, we want to share essential tips for our individual and business clients.

The Internal Revenue Service encouraged taxpayers to take key steps now to prepare for filing their 2024 federal income tax returns next year. There are several things’ taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches.

Gather and organize 2024 tax documents

To make tax time easier, taxpayers should establish an adequate record-keeping system, either electronic or paper, to organize all essential documents in one place. This includes year-end income forms such as Forms W-2 from employers, Forms 1099 from banks or other payers, Forms 1099-K from third-party payment networks, Forms 1099-NEC for nonemployee compensation, Forms 1099-MISC for miscellaneous income, Forms 1099-INT for interest income and records of all digital asset transactions.

Having all necessary documentation ensures taxpayers can file an accurate return and reduces the likelihood of processing delays or refund issues.

Please download our 2024 Tax Prep Checklist to help you gather and organize your 2024 Individual Tax documents. We also have a Tax Organizer for Small Business (Sch. C) and Rental Property (Sch. E).

IRS Online Account

Individuals can create or access their IRS Online Account at Online account for individuals. Currently, the IRS Online Account is not available for Business accounts. With an IRS Online Account, you can:

  • View, make, and cancel payments.
  • Set up or change payment plans and check their balance.
  • View key details from their most recent tax return, such as adjusted gross income.
  • Request an Identity Protection PIN.
  • Get account transcripts to include wage and income records.
  • Sign tax forms like powers of attorney or tax information authorizations.

Get an Identity Protection Personal Identification Number (IP PIN)

An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information.

The best way to sign up for an IP PIN is through the IRS Online Account. If an individual cannot create an Online Account, alternative methods, such as in-person authentication at a Taxpayer Assistance Center, are available.

Deadline for 2024 last quarterly estimated payment is Jan. 15, 2025

Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments, or earnings from digital assets—may need to make estimated or additional tax payments. The Tax Withholding Estimator on IRS.gov can help wage earners determine if they need to make an additional payment to avoid an unexpected tax bill when filing their return.

Prepare to include digital assets on taxes in 2025

Like previous filing years, taxpayers must report all digital asset-related income when they file their 2024 federal income tax return.

When filing 2024 federal income tax returns, taxpayers will be asked to answer “Yes” or “No” to the following question:

“At any time during the tax year, did you:(a) receive (as a reward, award or payment for property or services); or (b) sell, exchange or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

Taxpayers who answer “Yes” must report all income related to their digital asset transactions.

Be sure to keep records that prove their purchase, receipt, sale, exchange, or any other disposition of the digital assets, and that includes the fair market value, as measured in U.S. dollars, of all digital assets received as income or as a payment in the ordinary course of a trade or business. Information on how to report digital asset transactions, including calculating capital gain or loss, determining basis, and reporting the income on the correct form, can also be found on the digital assets landing page.

Understand refund timing and how to avoid delays

Several factors can influence the timing of a refund after the IRS receives a tax return. While the IRS issues most refunds in less than 21 days, taxpayers are advised not to depend on receiving a 2024 federal tax refund by a specific date. Some returns may require additional review and take longer to process if there are possible errors, missing information, or indications of identity theft or fraud.

Additionally, under the PATH Act, the IRS cannot issue refunds for tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February.

Use direct deposit for a faster refund

Filing electronically and selecting direct deposit remains the fastest and safest way for taxpayers to receive their 2024 tax refunds. Direct deposit ensures quicker access to refunds compared to receiving a paper check. Please provide the most updated bank account information to your tax preparer for a faster refund.

Key Tax Updates

  • Washington’s Long Term Capital Gain Tax – Washington’s Long Term Capital Gain Tax of 7% is due on April 15, 2025, for long-term gains greater than $270,000 (except for real estate and several other circumstances).  There are penalties for not paying in April.  Please get in touch with us in February if you would like to schedule a consultation regarding this. For more detail, please click here to visit the Department of Revenue’s page.
  • The child tax credit – The child tax credit is $2,000 for dependent children under 17 (The refundable portion of the child tax credit is $1,700).  You qualify for the full 2024 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 for a single return ($400,000 if filing a joint return).
  • IRS gift exclusion – The IRS gift exclusion is $18,000 in 2024 and $19,000 in 2025, respectively.  Gifts above these amounts should be reported on the gift tax return.
  • Federal lifetime gift and estate tax – As of January 1, 2024, the federal lifetime gift, estate, and GST tax exemption amount increased to $13,610,000 per person.
  • Educator Credit – You can deduct up to $300 of unreimbursed classroom expenses if you are an eligible educator. If both spouses are educators and file jointly, they can deduct up to $600 (with each individual capped at $300).
  • Interest Rate – Due to inflation, the underpayment or late interest rate for individual taxpayers will increase to 8% in 2024. Please consider making estimated payments by April 15th, even if you request an extension to file your tax return.
  • Social Security benefit and wage base – Social Security benefits will increase by 2.5% beginning in 2025. Social Security wage base will increase to $176,100 in 2025.
  • IRS Business Mileage rate – The IRS standard mileage rates are 67 cents per mile for business purposes in 2024 and 70 cents per mile beginning Jan. 1, 2025. Standard mileage rates | Internal Revenue Service
  • Form 1099-K – Taxpayers who received over $5,000 ($2,500 in 2025 and $600 in calendar year 2026 and thereafter) in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K in January 2025. However, they can send you a Form 1099-K with lower amounts. Although the IRS is taking a phased approach to implementing the Form 1099-K reporting threshold, companies could still send the form for over $600. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.
  • Student Loan Forgiveness – Student Loan Forgiveness will not be taxable on Federal returns but may be taxable in some states.
  • Charitable contributions – We recommend obtaining receipts for all charitable contributions. For more details, please check IRS website: Charitable contribution deductions | Internal Revenue Service
  • EV credit – In 2025, you can get a tax credit for electric vehicles (EVs) tax credit of up to $7,500 for a new EV or $4,000 for a used EV. New EV credit is divided into two parts: $3,750 for meeting battery part requirements and $3,750 for meeting critical minerals requirements. Vehicles that satisfy both conditions are eligible for the full $7,500 credit. The income limits for the EV credit are $300,000 for married filing jointly and $150,000 for Single filers.
  • Home energy credit – If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit of up to $3,200. You can claim credit for improvements made through 2032. The maximum credit you can claim each year is:
    • $1,200 for energy-efficient property costs and specific energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600), and home energy audits ($150).
    • $2,000 per year for qualified heat pumps, water heaters, biomass stoves, or biomass boilers.
  • The Maximum Retirement contributions for 2024
    • $7,000 for Traditional IRA or Roth IRAs ($8,000 if you are age 50 or older)
    • $16,000 for SIMPLE IRAs ($19,500 if you are age 50 or older)
    • $23,000 for 401ks ($30,500 if you are age 50 or older)
    • $69,000 for SEP IRAs (Contributions cannot exceed the lesser of 25% of the employee’s compensation or $69,000 for 2024)
  • The Maximum Health Savings Account (HSA) contributions for 2024
    • $4,150 for Self-only coverage
    • $8,300 for Family coverage
    • Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

 

If you have questions, be sure to reach out to us.

This is a friendly reminder that the due date to file the November 2024 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your November* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Wednesday morning (12/18/24) to ensure timely filing.

Notification from Washington Department of Revenue:

Quarter 1, 2025 Update — Sales Tax Rate Tools

The Quarter 1, 2025, Washington State sales tax rate changes are now available.

Local sales tax rates in the following areas will change beginning January 1st, 2025:

Local sales & use tax change notices

Lodging rate change notices

A complete list of location codes and tax rates can be found here on the website.

2025 Minimum Wage Resources

Washington State: https://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattle: https://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellingham: https://cob.org/services/business/city-minimum-wage

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage.

Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTEs in the aggregate. Effective January 1, 2025, at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $3.00 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025, at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $2.00 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:


Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.

SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

Tukwila: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,
Alisa Na CPAs & Advisors

**Please note our upcoming operating hours for December and January.
Dec 24th, Tuesday: 8am – 3 pm
Dec 25th, Wednesday: Closed on Christmas Day
Jan 1st, Monday: Closed on New Year’s Day

Dear Clients,

Our office has received inquiries from our clients regarding solicitation text messages, emails, phone calls, and notice mailings they received from third-party solicitors. When you receive a letter from a state or federal agency, pay more attention to it, and if you are in any doubt, never click on a link or scan a QR code. Also, keep your credit card and personal information private over the phone. Please collect the sender/callers’ information, such as name and badge ID information, and directly call the agency instead of calling the number they provide. This is the best way to determine whether the caller was legitimate. We want to alert our clients to common confusing or misleading notices.

WA Secretary of State

  • Annual Report Solicitations from a third party – An annual report must be filed each year by the end of the anniversary month and can be filed by the Secretary of State website or by requesting assistance from our office. The Office of the Secretary of State will send due date reminder notices directly to registered businesses via email and paper notice. The office does not send text messages.
  • Please find details and examples of these solicitations from the link below:
    Examples of Potentially Confusing or Misleading “Notices” & “Solicitations” | WA Secretary of State

FinCEN – Financial Crimes Enforcement Network

  • Beneficial Ownership Information (BOI) report solicitation—FinCEN has posted an alert regarding recent fraudulent attempts by hackers to solicit information from individuals and businesses that may be subject to reporting requirements under the CTA.
  • These fraudulent scams may include:
    • Correspondence requesting payment.
    • Correspondence that asks the recipient to click on a suspicious URL or to scan a suspicious QR code.
    • Correspondence requesting personal information.
  • Please find details and examples of these solicitations from the link below:
    Beneficial Ownership Information Reporting | FinCEN.gov

IRS

We want you to understand how and when the IRS contacts taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.

The IRS initiates most contacts through regular mail delivered by the United States Postal Service. They don’t initiate contact by email, text, or social media to request personal or financial information. There are circumstances in which the IRS will call or come to a home or business. These include when a taxpayer has an overdue tax bill, a delinquent (unfiled) tax return, or has not made an employment tax deposit. Even then, taxpayers will generally first receive several notices and letters from the IRS in the mail.

  • Tax scam warning signs: Scammers mislead you about tax refunds, credits, and payments. They pressure you for money or personal, financial, or employee information. IRS impersonators try to look like us.
  • Watch out for:
    • A big payday – If it sounds too good to be true, it probably is. Bad tax advice on social media could urge you to falsify tax forms or credit claims.
    • Demands or threats – Impersonators want you to pay “now or else.” They threaten arrest or deportation.
    • Website links – Odd or misspelled web links can take you to malicious sites instead of IRS.gov.
  • How do I verify contact from the IRS? – Go to IRS.gov and search on the letter, notice, or form number. Please be aware that fraudsters often modify legitimate IRS letters and forms. You can also find information at Understanding your notice or letter or by searching forms and instructions. For additional information please see How to know it’s really the IRS calling or knocking on your door.
  • Please find details and examples of these solicitations from the link below:
    Recognize tax scams and fraud | Internal Revenue Service

Please use caution when you receive correspondence from an unknown party. Verify the sender. We ask our clients to become familiar with these fraudulent messages, not to respond, not to click on links, not to scan QR codes, and never to provide their personal information.

If you have questions, be sure to contact us. Our entire team is here to support and guide you.

Sincerely,
ALISA NA CPAs & Advisors

This is a friendly reminder that the due date to file the October 2024 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your October* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Monday morning (11/18/24) to ensure timely filing.

Corporate Transparency Act: Beneficial Ownership Information Reporting:

The new filing requirement, Beneficial Ownership Information Reporting (BOI) to FinCEN started in 2024. This requirement applies to all businesses that are registered with the State to engage in business. https://fincen.gov/boi.

Please keep in mind the following filing deadlines based on your company’s creation date, and make sure you comply:

Notification from Washington Department of Revenue:

Local sales tax rates in the following areas will change beginning January 1st, 2025:

A complete list of location codes and tax rates can be found here on the website.


2025 Minimum Wage Resources

Washington State: https://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattle: https://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellingham: https://cob.org/services/business/city-minimum-wage

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTEs in the aggregate. Effective January 1, 2025, at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $3.00 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025, at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $2.00 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:

SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

Tukwila: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,

ALISA NA CPAs & Advisors

This is a friendly reminder that the due date to file the September 2024 Washington State Department of Revenue excise tax return is approaching.

If you have not provided the information to our office yet, please send us your September* sales (or Quarter sales for Quarterly fliers and Annual sales for Annual fliers) information by Friday morning (10/18/24) to ensure timely filing.

Notification from Washington Department of Revenue:

Quarter 3, 2024 Update — Sales Tax Rate Tools

The Quarter 3, 2024, Washington State sales tax rate changes are now available.

2025 Minimum Wage Resources

Washington State: https://www.lni.wa.gov/news-events/article/24-24

The Washington State Department of Labor & Industries (L&I) announced an increase in the state’s minimum wage to $16.66 per hour, effective on January 1, 2025.

Seattle: https://www.seattle.gov/laborstandards/ordinances/minimum-wage?utm_medium=email&utm_source=govdelivery

Starting January 1, 2025, all employers, regardless of schedule size, will be required to pay the same minimum wage of $20.76 per hour. Small employers will no longer be able to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance.

Bellingham: https://cob.org/services/business/city-minimum-wage

Starting May 1, 2025, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington State minimum wage, effective on January 1 every year. The city will establish the city minimum wage within two weeks of the publication of the new state minimum wage.

Burien: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

Employers with 20 or fewer full-time equivalents (FTEs) are exempt from the ordinance.

“Level 1 employer” means all employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTEs in the aggregate. Effective January 1, 2025, at 12:01 a.m., Level 1 employers shall pay each employee an hourly minimum wage of at least $3.00 over the Washington State hourly minimum wage.

“Level 2 employer” means all employers, including franchisees, that employ 21 – 499 FTEs in King County. Effective July 1, 2025, at 12:01 a.m., Level 2 employers shall pay each employee an hourly minimum wage of at least $2.00 over the Washington State hourly minimum wage.

“Level 3 employer” means all employers with 20 or fewer FTEs. Employers with 20 or fewer FTEs are exempt from this ordinance.

Renton: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Covered employers will be required to pay a new higher minimum wage for hours worked in the City. Covered employers are required to pay employees not less than the minimum hourly wage as follows:

SeaTac: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

2025 Minimum Wage: $20.17 per hour

The increase in the living wage rate (2.35%) has been calculated using the consumer price index for urban wage earners and clerical workers, (CPIW) for the twelve (12) months prior to September 1 as calculated by the United States Department of Labor. Therefore, in accordance with SeaTac Municipal Code (SMC) Section 7.45.050, the living wage rate in effect for hospitality and transportation employees within the City will increase to $20.17, effective January 1, 2025.

Tukwila: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/

Effective January 1st, 2025, Tukwila Minimum Wage hourly rates will be:

(On July 1st, 2025, mid-size employers are required to increase their minimum wage rate to equal the large employer rate of $21.10) Going forward, mid-size employer minimum wage will be the same as the large employer rate.

If you have questions, be sure to reach out to us.

Sincerely,

ALISA NA CPAs & Advisors

For the latest minimum wage information for each city, please visit the following links:

Important Updates

Please note that some cities will increase the minimum wage mid-year. City administrations typically send reminders to business owners about these changes, so stay vigilant for updates throughout the year. Many government agencies are shifting to electronic notifications due to budget constraints. We strongly recommend signing up for e-notifications on your city’s website to stay informed.

Sign Up for Local Sales & Use Tax Change Notices

Additionally, we recommend registering for updates from the Department of Revenue, which includes changes in local sales tax rates. The Department of Revenue is also moving towards electronic notifications. You can sign up here: WA Department of Revenue Notifications

If you have any questions, please feel free to reach out to us.

[Reminder 2024-03-04]

Important Due Dates
Tax supporting documents are due:

Dear Clients,

If you have yet to contact our office for your 2023 tax filings, we would like to remind you of
the due dates below.

Please upload your 2023 tax source documents to our secure portal by the dates below so we can prepare your tax filing.

 2023 Tax Source Documents
to Alisa Na CPAs Source Provide by
IRS Filing Due Date
Individual Form 10403/15/20244/15/2024
Individual Form 1040 with FinCen or FBAR3/15/20244/15/2024
Partnership Form 10652/15/20243/15/2024
S Corporation Form 1120S2/15/20243/15/2024
C Corporation Form 11203/15/20244/15/2024

If you cannot upload your documents by the above dates, please get in touch with our office to request an extension.

Please note late payment penalty and interest may accrue from the original due date if there is any tax liability.

When you have the complete tax source documents, please email [email protected] to request our secure portal link.

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you.

Sincerely,

ALISA NA CPAs & Advisors

We would like to share the IRS’s 2023 tax filing due dates.  

Please provide your tax source documents to our office before the dates below, ensuring enough time for us to coordinate and prepare your tax return.  

   2023 Tax Source Documents   to Alisa Na CPAs   IRS Filing Due Date  
Individual Form 1040  3/15/2024  4/15/2024  
Individual Form 1040 with   FinCen or FBAR  3/15/2024  4/15/2024  
Partnership Form 1065  2/15/2024  3/15/2024  
S Corporation Form 1120S  2/15/2024  3/15/2024  
C Corporation Form 1120  3/15/2024  4/15/2024  

Please note that late payment penalties and interest may accrue from the original due date if there is any tax liability.  

When your tax source documents are complete, please upload them to our secure portal.  

Rest Easy Notice Protection Program  

Starting with 2023 tax returns, we’re offering our Rest Easy program to our individual tax return clients. You will receive an IRS notice letter when there is a discrepancy between your tax return and the IRS’s record. You will need to respond to this IRS letter promptly and often must provide supporting documents to the IRS.   

If you receive an IRS notice for individual returns filed with our Rest Easy program, our office will help respond to the IRS notice on your behalf. Adding the Rest Easy program for your 2023 tax return is very simple. Let us know if you would like to opt in when we prepare your tax return; we will add an extra 20% to your tax preparation fee. You don’t have to pay an additional service fee in the future if you receive an IRS notice for that specific tax return.   

If you opt out of Rest Easy, no action is required. Please understand that without the Rest Easy program, IRS correspondence service will be billed separately at our service hourly rate.  

*** Rest Easy program does not cover audits or examinations ***  

Attention Business Owners: Effective January 1, 2024  

Corporate Transparency Act – Beneficial Ownership Information Reporting   

Business entities formed or registered before January 1, 2024, must file an initial beneficial ownership report before January 1, 2025. This reporting requirement applies only to entities such as corporations, LLCs, and others formed by filing a document with a state secretary of state or similar official. It doesn’t apply to sole proprietors.  

Please visit the website below for additional information about the Reporting Rule and guidance materials:  

Beneficial Ownership Information Reporting | FinCEN.gov  

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you. 

After years of delays, the first stage of the Corporate Transparency Act (CTA) goes into effect on January 1, 2024. It imposes a new federal filing requirement for most corporations and limited liability companies (LLCs) formed in 2024 and later.

The CTA’s purpose is to prevent the use of anonymous shell companies for money laundering, tax evasion, and other illegal purposes. But it applies to honest business owners as well as criminals.

The CTA does not apply to all new businesses. It applies only to entities such as corporations, LLCs, and others formed by filing a document with a state secretary of state or similar official. It doesn’t apply to sole proprietors.

Our firm is sending you this communication to provide you with some general information regarding the new reporting rules as well as initial steps you should take to address the implications of the CTA to your organization.

What entities are subject to the new CTA reporting requirements?

Entities required to comply with the CTA (“Reporting Companies”) include corporations, limited liability companies (LLCs), and other types of companies that are created by a filing with a Secretary of State (“SOS”) or equivalent official.

The rule identifies two types of reporting companies: domestic and foreign.

A domestic reporting company is a corporation, limited liability company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe.

A foreign reporting company is a corporation, LLC, or other entity formed under the law of a foreign country that is registered to do business in any state or tribal jurisdiction by the filing of a document with a secretary of state or any similar office.

Under the rule, and in keeping with the CTA, twenty-three types of entities are exempt from the definition of “reporting company.”

Exemption

The Reporting Rule exempts twenty-three (23) specific types of entities from the reporting requirements, including

  • large businesses—businesses with more than 20 full-time employees and $5 million in receipts on their prior-year tax return,
  • certain businesses already heavily regulated by the government, such as banks and insurance companies,
  • Inactive entity – entity existed on or before January 1, 2020 and not engaged in active business. Entity is not owned by a foreign person and no changes in ownership and no funds sent or received in the preceding twelve (12) month period. We highly recommend to file Articles of dissolution with Secretary of State to properly end the entity’s existence.
  • nonprofits, and
  • several others.

Who is a beneficial owner of my company?

If your company is a reporting company, your next step is to identify its beneficial owners. A beneficial owner is any individual who, directly or indirectly:

  • Exercises substantial control over a reporting company;
  • OR
  • Owns or controls at least 25 percent of the ownership interests of a reporting company.

An individual might be a beneficial owner through substantial control, ownership interests, or both. Reporting companies are not required to report the reason (i.e., substantial control or ownership interests) that an individual is a beneficial owner.

When do I need to file a report?

  • Reports will be accepted starting on January 1, 2024.
  • Reporting companies created or registered to do business before January 1, 2024, will have additional time — until January 1, 2025 — to file their initial BOI reports.
  • Reporting companies created or registered on or after January 1, 2024, will have 90 days after receiving notice of their company’s creation or registration to file their initial BOI reports.

What happens if my company does not report BOI in the required timeframe?

The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.

Additionally, a person may be subject to civil and/or criminal penalties for willfully causing a company not to file a required BOI report or to report incomplete or false beneficial ownership information to FinCEN.

Beneficial Ownership Information Reports

When filing BOI reports with FinCEN, the rule requires a reporting company to identify itself and report four pieces of information about each of its beneficial owners: name, birthdate, address, and a unique identifying number and issuing jurisdiction from an acceptable identification document (and the image of such document). Additionally, the rule requires that reporting companies created after January 1, 2024, provide the four pieces of information and document image for company applicants.

If an individual provides their four pieces of information to FinCEN directly, the individual may obtain a “FinCEN identifier,” which can then be provided to FinCEN on a BOI report in lieu of the required information about the individual.

What should I do if previously reported information changes?

In addition to filing an initial BOI report, reporting companies must also update and correct information in their previously filed BOI reports. Individuals who obtain FinCEN identifiers must also update and correct information previously reported to FinCEN. The company must file an updated BOI report no later than 30 days after the date on which the change occurred. The same 30-day timeline applies to changes in information submitted by an individual in order to obtain a FinCEN identifier. A reporting company is not required to file an updated report for any changes to previously reported personal information about a company applicant

Please visit the website below for additional information about the Reporting Rule and guidance materials:

Beneficial Ownership Information Reporting | FinCEN.gov

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you.

This is to inform all Restaurant Revitalization Fund (RRF) Awardees on possible SBA’s review on the use of funds and importance on retaining all RRF related records for 3 years. 

Post Award Report Acceptance and Record  

If you completed RRF Post Award Report by December 31, 2021, you should have received Post Award Report Acceptance email from SBA with Confirmation ID. The SBA reserves the right to request supplemental documentation needed to validate the certification.  

The business must retain all records necessary to prove compliance with Restaurant Revitalization Fund Program Rules for 3 years. If documentation is requested, you will be notified via email through the inbox.  

Eligible Uses of Funds  

The SBA and IRS share financial information from the tax return and look for transactions such as big withdrawal from business account to personal account. 

The following expenses are eligible if incurred between February 15, 2020 and March 11, 2023:   

  • Business payroll costs, including sick leave and costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums.  
  • Payments on any business mortgage obligation (both principal and interest; note: this does not include any prepayment of principal on a mortgage obligation). 
  • Business rent payments, including rent under a lease agreement (note: this does not include any prepayment of rent).  
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest). 
  • Business utility payments for the distribution of electricity, gas, water, telephone, or internet access, or any other utility that is used in the ordinary course of business for which service began before March 11, 2021. 
  • Business maintenance expenses including maintenance on walls, floors, deck surfaces, furniture, fixtures, and equipment.  
  • Construction of outdoor seating.  
  • Business supplies, including protective equipment and cleaning materials.  
  • Business food and beverage expenses, including raw materials for beer, wine, or spirits.  
  • Covered supplier costs, which is an expenditure made by the eligible entity to a supplier of goods for the supply of goods that are essential to the operations of the entity at the time at which the expenditure is made and is made pursuant to a contract, order, or purchase order in effect at any time before the receipt of Restaurant Revitalization funds; or with respect to perishable goods, a contract, order, or purchase order in effect before or at any time during the covered period. 
  • Business operating expenses, which is defined as business expenses incurred through normal business operations that are necessary and mandatory for the business (e.g. rent, equipment, supplies, inventory, accounting, training, legal, marketing, insurance, licenses, fees). Business operating expenses do not include expenses that occur outside of a company’s day-to-day activities.  

Note: Past-due expenses are eligible if they were incurred beginning on February 15, 2020 and ending on March 11, 2023.  

Business owners can make withdrawals for reimbursement on valid expenses spent from February 15, 2020 to present. 

If you have questions, be sure to reach out to us. Our entire team is here to support and guide you.