As we approach the end of this whirlwind year and welcome a new chapter with changes in our nation’s capital, we want to ensure that you are in the best tax position possible for 2024. Whether you’re an individual or a small business owner, now is a great time to consider some tax strategies that could help you save on your 2024 taxes. At the same time, it’s equally important to be mindful of any potential tax hurdles!
It’s crucial to base your tax decisions on the latest updates in legislation, IRS guidance, and court rulings. Recently, there have been some significant changes due to the Setting Every Community Up for Retirement Enhancement (SECURE) Act, the Inflation Reduction Act (IRA), and SECURE 2.0. These laws have greatly influenced year-end tax planning.
To help you navigate these changes, we’ve put together a 2024 Year-End Tax Guide, covering a wide range of tax planning topics. Keep in mind that the information provided is just a starting point for understanding year-end tax strategies.
For your tax planning preparation, we have included the following 2024 Annual Information Returns Newsletter
Corporate Transparency Act – Beneficial Ownership Information Reporting Requirement
As we look forward to the new year, there is a new reporting requirement for companies taking effect January 1, 2024 under the Corporate Transparency Act (“CTA”). Many companies will be required to report information to the U.S. government about who ultimately owns and controls them. Please see the attached summary regarding the new Beneficial Ownership Information (“BOI”) reporting requirements. Please note that penalties for non-compliance can be significant. You may need to work with your attorney to identify reporting companies and file the reports timely as Hedman Partners LLP cannot provide the legal services required to comply with the CTA.
For further information, please see the attached and the FinCEN BOI website, https://www.fincen.gov/boi which contains FAQ’s, and reference materials.
To BOI or Not BOI – The Corporate Transparency Act (“CTA”) passed by Congress in 2021 requires most companies in the U.S. to file reports related to Beneficial Ownership Information (BOI). Please see the article below for more information regarding the CTA and BOI.
Other informative articles that are available include: Target Date Funds: What You Need to Look For and Don’t Panic if You Receive a Benefit Audit Notice.
Be aware that the concepts discussed in this letter are intended to provide only a general overview of year-end tax planning. It is recommended that you review your personal situation with a tax professional. Please contact us.