Corporate Transparency Act Reporting Requirements Back in Effect with Extended Reporting Deadline; FinCEN Announces Intention to Revise Reporting Rule
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Following the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336, the Financial Crimes Enforcement Network (FinCEN) has announced that beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act are back in effect, with a new deadline of March 21, 2025 for most companies.
FinCEN has also announced that it will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.
FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership Information Reporting Deadlines
FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current deadlines. No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed.
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5 Reasons to Work With a Tax Professional
To help ensure you use every tax deduction to which you're legally entitled is to work with a knowledgeable tax professional. Here are five reasons this partnership can pay off.
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MARCH 2025 Q & A
Q: I'm getting ready to prepare and file my 2024 tax return and heard I could open a traditional IRA this year and deduct contributions from last year's income on my tax return. Is that true?
A: Anyone with earned income can open a traditional IRA before the tax filing deadline and contribute up to $7,000 of earnings ($8,000 if over age 50) for 2024 (and 2025), but they must qualify by income to get a tax deduction. (You can't deduct contributions to a Roth.)
The deductibility phases out at different income levels depending on your filing status and whether you or your spouse has a qualified retirement plan at work. This means if your Modified Adjusted Gross Income (MAGI) is below the stated range, you can contribute the full amount to an IRA. But if your MAGI falls within this range, your contribution limit is reduced progressively until you cannot contribute at all if your MAGI exceeds the range.
Beware of Tax Scams
Don't fall victim to scams during this tax filing season. Recognize these red flags.
The IRS doesn't initiate contact with taxpayers or request personal or financial information through phone, email, text message or social media. You'll usually receive several letters from the IRS before an agent calls you or comes to your home or business.
Also, the IRS doesn't call to demand immediate payment using a specific method, like gift cards or wire transfers. Any tax payments should be made directly to the United States Treasury.
IRS personnel will never threaten to send local police or immigration officers to arrest you if you don't pay.
If you're ever in doubt about the legitimacy of messages or letters you receive, contact your tax professional right away, or call the IRS.
Taxes and Retirement
If you are planning to move when you retire, look beyond state income taxes to estimate retirement living expenses.
TAXES ANYONE?
States levy taxes on general sales (although some may exempt food or clothing), real estate, rooms and meals, utilities, and even inheritances and estates. So, it's important to weigh all of these factors and figure how each tax may affect you.
EXEMPTIONS
Some states with the highest income tax rates may exempt Social Security and retirement plan income up to certain limits. Every state has to levy taxes somewhere, so do your homework to learn.
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