Happy Fall! We’ve got this month’s tax memo from Padgett conveniently hitting your inbox right between our two fall deadlines. Hopefully, you’re getting ready to ramp up for a successful tax season.
In today’s newsletter:
Guidance on the Beneficial Ownership Information (BOI) Reporting
Moratorium on Employee Retention Credit (ERC)
Tax Seminar
FINCEN on Beneficial Ownership Information Reporting
Most small businesses will need to report beneficial ownership information beginning January 2024. While the effective date is quickly approaching, the guidance available is fairly limited.
Given the lack of guidance and the high penalties associated with non-compliance, the Treasury Department intends to propose a rule which may delay the reporting requirement under the Corporate Transparency Act (CTA), per an announcement made through the Office of Information and Regulatory Affairs.
On 9/18, FinCEN published a Small Entity Compliance Guide to assist the small business community in complying with the beneficial ownership information (BOI) reporting rule.
FinCEN is also issuing revised and new FAQs about the BOI reporting requirements that incorporate content from the Guide.
The ERC
On September 14th, the IRS ordered an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program to protect honest small business owners from scams.
Special eligibility checklist. The IRS created a new ERC eligibility checklist that provides a quick, high-level way for employers to figure out if they might qualify to claim the ERC or if they potentially need to resolve an improper claim. Given that some small businesses may have been misled by aggressive promoters, this checklist is an important reference tool to use along with checking with a trusted tax professional.
New FAQs. The IRS also updated the FAQs on ERC with new questions and answers.
Padgett President, Roger Harris, joined other practitioner groups in expressing his support for the move in this article from CNBC.
Tax Seminar
Padgett’s annual tax seminar is coming up! This year, it’s taking place in San Antonio from November 13 – 16. It’s a three-day event exclusive to Padgett franchisees where owners and employees get to network and hear from the best for 26+ hours of CPE. This year, we’re opening up a few select spots to firm owners looking to learn more about the Padgett network. Contact Director of Franchise Sales, Chris Thomason, at cthomason@padgettadvisors.com to learn more.
As a reminder, we share these and further actionable updates every month in our franchisee-exclusive tax chats. This month, we talked through technology recommendations for addressing these challenges and additional areas to be aware of for the 2024 tax season! If you’d like to learn more about how you could experience the benefits of Padgett, attend an info session.
We have a podcast!
Want more tax updates and accounting insights? Tune in every other week to Federal Tax Updates! Hosts Roger Harris, EA and Annie Schwab, CPA help you keep up-to-date with the latest federal tax information while earning approved CPE and CE credits.
At Padgett, our mission is simple: help business owners focus on their passion by supporting them through the tasks that take time away from doing the work they love. We empower accountants, bookkeepers and tax professionals across the country to run their own firms with freedom and confidence. If you'd like to know more about the benefits of becoming a Padgett firm, contact us today.
