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Category: Taxation-Corporate

March 26, 2024

President Biden’s Proposed Budget Highlights His Tax Agenda

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget. Business Tax Provisions The budget proposal includes many changes… Read more ›

March 18, 2024

Trust Types as an S Corporation Shareholder 

An S corporation is a business structure that allows the passage of taxable income, losses, credits and deductions to shareholders, thereby preventing income from being exposed to the consequences of double taxation at the corporate and individual levels. Although an S corporation benefits from certain tax advantages, it also faces restrictions such as a limit on the number of shareholders – no more than 100. As part of estate planning, some individuals choose to take advantage of the availability of… Read more ›

March 11, 2024

IRS Notices Changing for Brevity and Clarity 

If the complexity of IRS notices has historically got you scratching your head, you’re not alone. Fortunately, the IRS is addressing this problem with a “Simple Notice Initiative”, a program which will be rolled out in the coming years to improve communications with customers by focusing on: This ambitious project will end up impacting up to 90% of notices distributed by the IRS by the 2025 filing season. It will begin by updating notices commonly distributed to individual taxpayers including… Read more ›

January 24, 2024

IRS Provides Penalty Relief for Nearly 5 Million Filers and Restarts Collection After Pandemic Pause

The Internal Revenue Service (IRS) announced significant relief measures for some taxpayers facing penalties on their 2020 and 2021 tax returns. The relief addresses a mishap caused by COVID measures. 4.7 million individuals, businesses and tax-exempt organizations incurred late fees without receiving collection reminders. The IRS will provide $1 billion to settle these penalties or reimburse filers who have already paid their account. Those who qualified will be sent a letter some time this month, no action is needed to… Read more ›

January 23, 2024

2024 Tax Calendar

To help you make sure you don’t miss any important 2024 deadlines, Councilor, Buchanan & Mitchell (CBM) provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and use our online contact form (link is at the end of this blog) to let us know if you have any questions about the deadlines or need assistance. January 31 February 12 February 15 February 28 March 11 March 15 April 1 April 10… Read more ›

November 17, 2023

Case Study: CARES Act Turns Net Loss Into a Positive

At a Glance: An event management company facing significant net operating loss, turned to CBM for help. CBM utilized the loss and a provision from the CARES Act to lower previous year taxable income and earn the agency a large refund. Challenge: An event management company faced a significant financial setback with a $131,000 net operating loss on their corporate tax return. With the prospect of no future refunds or tax deductions, the company reached out to CBM to determine… Read more ›

November 15, 2023

New Upcoming Requirement for Businesses that Receive Large Amounts of Cash

Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Beginning January 1, 2024, this reporting will have to be done electronically. Here are some answers to questions about the requirements and what’s changing. What Is Required? Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or… Read more ›

November 9, 2023

Expect Credit Processing Delays from PTE Tax Filings; Proposed Solutions (Hopefully) on the Way

The 2023 tax season may require an additional level of patience for business owners filing for credits from pass-through entities (PTE). Maryland has seen a growing number of PTE filings the past few years. This increased workload coupled with administrative hurdles within the Comptroller’s office, has led to several cases of inaccurate returns and longer-than-expected processing delays. The Comptroller of Maryland sent a letter to tax professionals detailing the office’s struggles and offering solutions including asking tax filers for help…. Read more ›

November 8, 2023

IRS Offers a Withdrawal Option to Businesses That Claimed ERTC

Recent IRS warnings and announcements regarding the Employee Retention Tax Credit (ERTC) have raised some businesses’ concerns about the validity of their claims for this valuable, but complex, pandemic-related credit — and the potential consequences of an invalid claim. CBM has helped many clients file claims when they met the approved criteria requirements. However, we also recognize that many businesses not working with a reputable tax professional may have been misled by fraudulent parties into believing they were eligible to… Read more ›

October 31, 2023

Microsoft’s $29 Billion Tax Bill: The Lesson to Be Learned

On Wednesday October 11th, Microsoft announced it had received a $28.9 billion dollar bill for unpaid taxes between 2004 and 2013. The case shed light on the complexities and challenges of international taxation, and it serves as a cautionary tale for businesses looking to avoid similar tax penalties. Understanding Microsoft’s Tax Bill The $29 billion in unpaid taxes stemmed from an IRS audit into Microsoft’s 2004 to 2013 finances. The IRS investigation began after an unusually structured manufacturing facility in… Read more ›