As we wait for legislative updates, this is a reminder for CA business owners who typically make the passthrough entity election (paying your individual taxes on profits at the business level). CA requires that you make an estimated tax payment NO LATER than 6/15 if you want to be able to make the election at all this year. The amount must be at a minimum equal to 50% of your prior year PTET liability. Your 2024 corporate/entity returns will have a voucher with the correct amount, but please reach out with any questions!
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Q2 ESTIMATED TAX PAYMENTS REMINDER
JUNE 15th is the Q2 estimated tax deadline, just a friendly reminder. If you are looking for your quarterly vouchers, they are included in your client copy of your 2024 tax returns.
Please reach out if you have any questions!
FINCEN BOI REMINDER – PLEASE READ
As we approach the end of the year, this is a final reminder to ALL clients who have an ownership interest in a legally registered entity (LLC, Corporation, etc.) to register your entity with FINCEN before 12/31/2024: https://fincen.gov/boi
This is required, not optional. Penalty for failure to file this Beneficial Ownership Information Report is $500/day per entity and potential criminal penalties.
Our firm is NOT providing services related to this required filing and it is in no way related to your tax compliance. There are many providers out there including registered agents and attorneys that are offering registration services, and a lot of individuals are registering on their own directly through the link provided above. Please let us know if you have any questions.
2023 Tax Extension Deadline and Failed Legislation
Quick reminder for those on extension:
Partnerships and S-Corp returns are due by 9/15. Please ensure our office has any outstanding request items by 8/15 to ensure timely filing.
Individual returns, C-Corporations, Trust returns are due 10/15. Please ensure our office has any outstanding request items by 9/15 to ensure timely filing.
For those of you who were on extension in hopes that the house legislation (tax bill) would pass the senate vote…it did not. R&D, bonus depreciation, and the child tax credit expansion fixes did not make it through. We are recommending moving forward with filing 2023 under current known rules and we can later amend if applicable legislation passes after the deadline.
Any questions – please reach out!
If You Own a Business (LLC, Corporation, Etc.) Please Read For CTA Compliance Details
For those of you who are unfamiliar with this, the Corporate Transparency Act was created to require individuals who ultimately own or control a registered entity to file a new registration report with FinCEN (called a Beneficial Ownership Information report).
Not to be taken as legal advice, but the important notes that may impact you as a business owner:
Where Do I File?
When is the deadline?
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
Here is a link to the FAQ for additional information from FinCEN
Our firm is not currently registering entities as a service offering but there are some attorneys and third-party providers out there. FinCEN provides instructions on their site to assist business owners to register on their own.
Business Owners – Please READ!
If you are currently taking advantage of the passthrough entity election, please be sure to make your estimated tax payments. For California clients especially, you have to make the required estimated payment by 6/15/2024 in order to make the PTE election at all. Missing this deadline could be costly, please do not hesitate to reach out with any questions or to confirm the amounts.
One additional note: we will be sending out another message soon regarding the new Corporate Transparency Act (which is a required business registration for all legally organized business entities). Stay tuned.
Q2 planning/reminders
Some quick reminders for Q2:
Estimated quarterly tax payments (Q1 was due 4/15, Q2 is due 6/15)
Clients working with us under an advisory engagement – grab time on Brian’s calendar for a quarterly check-in
Annual Tax Clients – if a quarterly estimated tax check-in is helpful, reach out to Brian directly
4/15 Deadline – 2 weeks remaining
A friendly reminder that initial deadline is coming up. If you have uploaded files to SmartVault but have not communicated with our office or received an update, please reach out to Brian right away with questions.
If you are going on extension, please be advised that taxes are ALWAYS due by the original deadline, regardless of extensions. Any unpaid tax will be subject to penalty and interest.