Recently it feels like changes to legislation are coming out of Washington every day, and here at Visibility CFO & Tax Advisors we have been eagerly watching for what impact new legislation will have on federal taxes. This week (on Tuesday, February 25th) the House of Representatives narrowly passed a budget resolution that proposes $4.5 trillion in tax cuts (alongside a $2 trillion reduction in federal spending over the next decade).

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 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.

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.