The IRS has indicated that it will continue to apply the domestic filing exception for eligible passthrough entities to avoid having to file Schedules K-2 and K-3 for the 2024 tax year. These schedules report information about foreign activities. Even if an entity has no foreign activities, the IRS generally requires all entities to file Schedules K-2 and K-3 if the passthrough entity has any ...
The Financial Crimes Enforcement Network (FinCEN) has announced that, due to ongoing litigation, reporting companies are not currently required to file beneficial owner information. This effectively suspends the January 1, 2025 filing due date for existing entities until the ongoing litigation ends. The alert posted to the FinCEN website includes the following: While this litigation is ong...
On December 3, 2024, the United States District Court of the Eastern District of Texas placed a preliminary nationwide injunction on beneficial owner reporting (Texas Top Cop Shop Inc. v. Garland, No. 4-24-cv-00478). The Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database. Search our tax news archive ...
In Notice 2024-85, the IRS confirmed that a $5,000 threshold will apply for the 2024 tax year for Form 1099-K, Payment Card and Third-Party Transactions. Third-party payment platforms will be required to file Form 1099-K for any account if the total amount of all transactions in the account is more than $5,000 during 2024. In the same notice, the IRS also indicated that the threshold will b...
