ACER CPA

Greetings from Baltimore, Maryland!

CPA practice offering tax, planning & strategy for business owners navigating complex rules and landscapes.

TAX TIP #1:
If you receive mail from the IRS, don't toss it. It could be $$$

This month, the IRS will be sending recovery rebate credits to those eligible but did not claim back in 2021. Nearly $2.4 billion in payments!

TAX TIP #2:
1099 reporting rules are tightening. With due dates rapidly approaching as soon as Jan 31. Are you tax season ready?

www.acercpa.com

New for 2024 - if you have a small business - this applies:

2024 Corporate Transparency Act Addendum

A new reporting rule goes into effect on January 1, 2024 requiring the filing of a special form directly online with (FinCEN) Financial Crimes Enforcement Network.

· Single member LLC’s (even just Schedule C filers), multi-member LLC’s, S corporations and C Corporations that are not exempt must disclose beneficial ownership:

o Within 90 days of formation of a new business in 2024; or

o By December 31, 2024 for companies that were in existence before 2024.

· Beneficial owner information includes full legal name, date of birth, residential street address and passport or driver’s license image (picture). A beneficial owner is an individual owning 25% or more of the entity, as well as officers, board members and non-owner managers.

· Ownership and address changes will have to be reported within 30 days of occurrence.

· Penalties for non-compliance are $500 per day and up to 2 years in the prison.

There are very few exceptions for small businesses, and newly formed LLC’s and corporations have the biggest exposure for non-filing. Make sure you tell us about any new entities you establish.

Small business owner myth #1: “You have to have an LLC to take business deductions.”

False.

You don’t have to have an LLC, S-Corp, or C-Corp in place, you can simply be a sole proprietorship and run a business and capture all the same deductions.

You’re running a business.

The IRS is going to expect you to capture all your income and deductions related to the business each year.

So, if you’re considering creating an LLC or corporation mainly to “capture more deductions”, you’re doing it for the wrong reason.

Entity structures help with asset protection. Work with a good attorney to take protect your assets.

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