Jun 24

February 2024

Welcome, everybody; I am Pedro Baldeon, EA. I have been preparing tax returns for over seven years. For the last four years, I have been working for Higginbotham Companies Inc. under Tracey's guidance, and it is time for me to take the reins and write the monthly tax update articles. Shortly after January 31st, everyone should receive your tax Forms 1099-INT,1099-R, W-2,1099-NEC, and by the end of February your Forms 1099-S, 1099-DIV, and 1099-B. Next, an important reminder for taxpayers with health insurance through the Marketplace: go online at Healthcare.gov, log into your account, and download your Form 1095-A, or contact your insurance agent. You can't imagine how many tax returns have been rejected because Form 1095-A was not reconciled in the return. Also, for taxpayers with a qualified child, don't forget to pick up your yearly statement from childcare, which will be used to claim the childcare credit. In addition, taxpayers claiming Earn Income credit (EIC), child tax credits (CTC), and additional tax credits should file their tax returns before February 15th, 2024. This may prevent someone else from using your dependent's information to file taxes before you fraudulently. By Law, The IRS can't issue any EIC or CTC refunds before mid-February; on the IRS website, the section "Where's my refund" will show an updated status by February 17th for early filers claiming any EIC or CTC. But, you could expect to get your refund by February 27th, if you filed electronically, there are no issues with your tax return, and you choose direct deposit. So, gather your documents for your appointment with your tax advisor. This year, for people with businesses, we have a new reporting requirement by The Financial Crimes Enforcement Network (FinCEN) and The Beneficial Ownership Information (BOI). In 2021, Congress enacted the Corporate Transparency Act; this Act was implemented to make it harder for bad people to hide their business. Beginning January 2024, Companies registering with the State must file the Beneficial Ownership Information Report (BOIR). It will gather information for anyone who exercises substantial control or owns/controls at least 25 percent of the ownership interest of a reporting company. You will need to provide your full name, date of birth, complete current address, and a picture of your U.S. ID, like a Driver's License or Passport. However, if an individual fails to report the Beneficial Ownership Information (BOI) and attempts to report false information, it could result in a Civil penalty of up to $500 per day, or prison for up to two years and/or up to a $10,000 fine. Finally, here is the guidance for the due dates; if the company has been registered with Florida Division of Corporations, before January 1, 2024, they have until January 1, 2025. If your company was registered on or after January 1, 2024, they have 90 days to file after the company was registered with the State. If your company was registered on or after January 1, 2025, the company has only 30 days to file. Last, the company has to report any correction or update the information within 30 days. This is a very brief overview.  For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor.   Provided by Pedro L. Baldeon, E.A., (321) 632-5726, a member of the National Society of Tax Professionals.