Beneficial Owner Reporting Engagement Letter
As discussed in our earlier posts, most recently on January 3, 2024, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database.
The AICPA has issued risk management guidance for those who have chosen to perform services for clients related to the requirements of the Corporate Transparency Act, including...
IRS Provides Eligible Census Tracts for Form 8911 Credit
Beginning in 2023, new rules apply to the credit for property used to recharge clean vehicles, claimed on Form 8911, Alternative Fuel Vehicle Refueling Property Credit. To claim the credit, otherwise eligible property must be placed in service in an eligible census tract.
The Tax Year 2023 M+O Individual Tax Year-End Workshop Reference Book discusses the rules for the credit on pages 13 to 16,...
IRS Delays Form 8300 for Crypto
In Announcement 2024-4, the IRS announced that the requirement to include the receipt of cryptocurrency and other digital assets on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, has been delayed.
This requirement along with the e-file requirement for Form 8300 are discussed on pages 53 to 54 of the Tax Year 2023 M+O=CPE Individual Tax Year-End Workshop Refer...
2024 Estate Tax Exclusion
The 2024 federal lifetime unified estate and gift tax exclusion is $13,610,000 up from $12,920,000 in 2023.
In addition, the annual federal gift tax exclusion in 2024 is $18,000 per person per year, up from $17,000 in 2023.
The 2024 New York estate tax exclusion is $6,940,000 up from $6,580,000 in 2023. (There is no gift tax in New York State.)
CT-34-SH Addback of NYC Tax for S Corps
The 2023 instructions for Form CT-34-SH, New York S Corporation Shareholders’ Information Schedule, include a significant change to the add-back rules for taxes on line 1a. The add-back rules apply to certain taxes that were deducted by the entity on its federal Form 1120S.
In addition to the taxes that have been previously included, the list of taxes to be added back now also includes any o...
MCTMT Clarification for MTA-305
As discussed in our post on August 29, 2023, the tax rate increased for the metropolitan commuter transportation mobility tax (MCTMT) on payroll in the five boroughs of New York City (referred to as Zone 1), effective on July 1, 2024.
The rate of tax on payroll in the other counties subject to the MCTMT remains unchanged. These counties include Dutchess, Nassau, Orange, Putnam, Rockland, Suffo...
Bonus Depreciation Strategy
Bonus depreciation for the 2023 tax year has been reduced to 80% of the cost of eligible property. (This is down from 100% bonus depreciation that applied in the 2022 tax year and in recent prior years.)
Congress is currently considering a bill that could retroactively change the bonus depreciation rules for the 2023 tax year. While there is no guarantee that the bill will become a law, practi...
Waiver for E-File of W2s and 1099s
As discussed in several prior posts, most recently on November 7, 2023, the threshold for the e-file mandate for Forms W2 and 1099 has been lowered to 10, effective for forms to be filed for the 2023 tax year, beginning on or after January 1, 2024.
An entity that is required to e-file Forms W-2 and 1099 can request an automatic waiver from the requirement for one year only, by filing Form 8508...
K-3 Exception for 2023 tax year
January 24, 2024 Update: The final instructions for Schedules K-2 and K-3 match the draft version of the instructions.
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 2023 tax year. These schedules report information about foreign activities.
Even if an entity has no fo...
Beneficial Owner Reporting Site Launched
The Financial Crimes Enforcement Network (FinCEN) has launched the site to be used to file reports of beneficial owners required by the Corporate Transparency Act.
The website link is: https://boiefiling.fincen.gov/boir/html.
The site currently requires an image of an identifying document to be uploaded as part of the registration. If a beneficial owner does not have such a document, there ...