Tax season isn’t just about paperwork and deadlines—it’s also a time to stay vigilant against potential scams. Each year, the IRS releases its Dirty Dozen list, highlighting the most common tax-related scams.

Managing taxes can be challenging as a sole proprietor! By taking advantage of available deductions and credits you can significantly lower your taxable income- but knowing if you qualify, planning ahead and keeping compliant records isn’t always top of mind with everything else you have to do while running a business.

On December 27, 2024, FinCEN issued a critical update regarding the reporting requirements under the Corporate Transparency Act (CTA). Due to ongoing litigation, businesses are not currently required to submit beneficial ownership information, and no penalties will be imposed for non-compliance while this situation remains in effect. However, companies may still choose to submit beneficial ownership reports voluntarily.

A Fifth Circuit Court of Appeals ruling on Monday December 23rd has now lifted the December 3rd injunction against the Corporate Transparency Act (CTA) and its reporting requirements, reinstating the initial deadline for filing beneficial ownership information (BOI) reports. The Financial Crimes Enforcement Network (FinCEN) has extended the deadline for most reporting companies to file BOI reports to January 13, 2025.

As we approach the 2025 tax filing year it is important for taxpayers to be aware of upcoming changes.

One change we look for each year is inflation-adjusted tax brackets. The IRS has released information on its new inflation-adjusted tax brackets for 2025.  Inflation-adjusted tax brackets occur as the IRS adjusts various tax provisions in an effort to prevent "bracket creep" (when inflation pushes taxpayers into higher income tax brackets despite their purchasing power not having increased).

A significant legal development unfolded recently when the U.S. District Court for the Eastern District of Texas issued a nationwide injunction halting the enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting Rule. This ruling effectively postpones the requirement for businesses to submit initial BOI reports by the previously established deadline of January 1, 2025.

Tis the season for giving- and we want to make sure you know that giving to charity is not only a meaningful way to support causes close to your heart but can also be a strategic method to reduce your tax liability. By understanding the rules and requirements, you can maximize your contributions' impact while securing valuable deductions- giving you the financial freedom to continue to invest in what you are passionate about!

One of the most impactful tax incentives for businesses is Section 179 of the Internal Revenue Code, commonly referred to as the "Section 179 Deduction." This powerful tax tool can help businesses to immediately write off the cost of certain assets in the year bought, reducing taxable income and freeing up capital for growth.