Financial & Tax Updates

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?

https://boiefiling.fincen.gov

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.

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.

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

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.

There was an Arizona rebate/stimulus payment issued to many Arizona residents in November 2023. The IRS has stated this is taxable for federal. A lot of clients have noted that they did not receive a 1099MISC from the Arizona Department of Revenue. If you received this payment, you can view and download this tax form directly from their site using this link: https://form1099g.aztaxes.gov/Home/Index

Please provide this form along with all of your other tax documents as they become available, preferably uploaded to our SmartVault client portal.

Tax season is officially underway, here are a few quick (important) reminders:

S-Corporation and Partnerships – these returns are due 3/15, please notify our office as soon as financials and all supporting reports (i.e. payroll) are available/uploaded so we can prepare those returns. In order to meet the 3/15 deadline, we would require this information by 2/15. Please let us know if you need us to submit an extension.

Individuals – IRS e-file season opens upon Monday 1/29, we are still waiting for final software/forms/schedules to be released. We also understand that many of you are waiting on investment 1099’s and k-1’s, please let us know when you believe we have everything uploaded to SmartVault and can begin preparation. Also, individual organizers should all be printed to your 2023 Client Source Documents folder. You are not required to fill these out, but please use them as a guide and review the checklist for important items/questions.

quick reminders for year-end (in addition to the regular tax planning/implementation):

S- Corp Shareholders – reminder to review your year-to-date salary and run payroll before 12/31 if needed (reasonable salary OR retirement deferral true-up).

All business owners – if you are making the PTE (passthrough entity election) for this year, this is a reminder to estimate the state liability and pay in by 12/31 if it makes sense to do so. Also be sure to review upcoming expenses for paying down profit. Don’t forget about estimated tax liability as well (including safe-harbor minimums).

These items can fall under planning objectives, please reach out if clarification or discussion is needed. If we already have a meeting on the calendar, we can review these items at that time. If your schedule is not lining up with Brian’s calendar availability, reach out directly for assistance. Email is typically fastest for response time.