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Category: Taxation-Individuals

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 13, 2024

10 Common Mistakes When Filing Your Taxes

Making a mistake while filing your taxes can lead to complications with the Internal Revenue Service (IRS). Some oversights or errors are easily fixed but others could have deeper consequences, impacting your refund, your tax liability or even lead to fines or an audit. While CBM always recommends working with a knowledgeable tax professional, you should always be mindful to avoid these common mistakes.  You may be surprised to know the most common mistakes with tax filings, as reported by… Read more ›

March 12, 2024

Some Effective Tax Planning Strategies 

As the 2024 individual tax filing deadline approaches, CBM is happy to share some helpful tips and strategies for tax planning. Even if it is too late to take advantage of some of these deductions and benefits for 2023 (some are still available to you!), it’s never too early to begin planning for the 2024 tax year. Please contact a CBM tax professional or financial planner to ensure you are taking advantage of as many benefits as possible. Contribute to… 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 ›

December 15, 2023

IRS Delays New Reporting Rule for Online Payment Processors

For the second consecutive year, the IRS has postponed implementation of a new rule that would have led to an estimated 44 million taxpayers receiving tax forms from payment apps and online marketplaces such as Venmo and eBay. While the delay should spare such taxpayers some confusion, it won’t affect their tax liability or income reporting responsibilities. And the IRS indicated that it intends to begin phasing in the rule in 2024. The New Reporting Rule The rule concerns IRS Form 1099-K, Payment Card and… Read more ›

November 15, 2023

6 Ways to Evaluate Investment Risk

Successful investments can be extremely profitable. But the stocks with the greatest potential tend to be the riskiest. And underlying risks aren’t always obvious. In fact, there are several different types of risks for investors to consider, based on your portfolio’s asset allocation. Here are six ways to review and calculate the risk of an investment before you decide to put down your money: 1. Market risk. This is the risk that the price will decline due to market factors… Read more ›

July 17, 2023

3 Big Inventory Issues for Construction Companies

In the construction industry, supply-chain challenges are nothing new. They’ve just gotten much more media attention over the last few years. Increased globalization, a pandemic and geopolitical strife have all contributed to some notable slowdowns, though things have generally been better lately. One way that construction companies can mitigate supply-chain problems is to maintain their own inventories of various building materials, products and supplies. However, an inventory can also complicate tax planning. Here are three big issues to consider. 1…. Read more ›

July 17, 2023

Virtual Currency Lands in the IRS’s Crosshairs

While the value of virtual currency continues to fluctuate, the IRS’s interest in it has only increased. In 2021, for example, the agency launched Operation Hidden Treasure to root out taxpayers who don’t report income from cryptocurrency transactions on their federal income tax returns. Moreover, the Inflation Reduction Act of 2022, allocated $80 billion to the IRS, most of it designated for enforcement activities. However, the Fiscal Responsibility Act, enacted in May 2023, will claw back $21.39 billion of that amount by the end… Read more ›