Countdown to 2024: Don’t Let the Year Slip Away!
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The countdown to the New Year is on!
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As the holiday season kicks into high gear, you might be feeling the aftermath of Thanksgiving’s delightful chaos—and trust me, I get it! That’s why this edition of our newsletter is a little bite-sized, perfect for snacking between football games and pie leftovers.
Let’s dive into the juicy details: the IRS has decided to spread some early holiday cheer for businesses and taxpayers alike. They’ve announced a delay on the new $600 Form 1099-K reporting threshold for certain third-party payment platforms. Instead, if you receive over $5,000 in 2024, that’s when the reporting kicks in—so you can breathe a little easier while you enjoy your festive cookies. But don’t stray too far from the cookie jar; keep an eye on those year-end forms!
Heads up—mark your calendar! The IRS will be halting online applications for new Employer Identification Numbers (EINs) soon, starting around December 20th and lasting until the first business day of January. If you need an EIN during this time, brace for a bit of nostalgia because you’ll have to go old school!
And while you’re preparing for the New Year, don’t forget about the Beneficial Ownership Information (BOI) filings. If your business was set up before January 1, 2024, you’ve got until January 1, 2025, to file your initial report. Late submissions could come with penalties, and nobody wants that kind of surprise!
Year-end is prime time for rethinking your financial game plan. Whether it’s maximizing tax benefits, making charitable contributions, or getting your retirement contributions in order, now’s the moment to strategize. Oh, and don’t forget to check your Social Security benefits—it’s crucial to know where you stand as 2025 approaches.
But hold your horses! Before you dive headfirst into pre-tax strategies, think it through. For instance, pre-funding a Roth account could be a savvy move… or a misstep if you don’t consider the broader financial picture. So analyze before you finalize!
So much can still unfold in these last few weeks of the year. Buckle up—2025 is right around the corner!
Cheers to the weekend,
Your Tax Insider
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Fun Facts & Figures
As you gear up for Giving Tuesday, get ready to open those wallets! Last year, Americans generously donated over $557 billion to charity, averaging more than $1.5 billion per day. Religious organizations topped the list, followed closely by human services and education.
Charitable Giving Trends
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Most of this generosity comes from individual donors, showcasing the heart of America!
Sources of Charitable Giving
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In-Depth Look
Telecom tax cases are heating up!
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The Supreme Court is stepping into a hot legal debate regarding the tax authority of the FCC. A recent case may determine whether Congress improperly handed over its power to tax to the FCC, which then passed it off to private entities.
This issue stems from the FCC’s Universal Service Fund, created to help subsidize phone services for low-income households. The fund has expanded over the years to cover broadband services, but now it’s under scrutiny. A legal group claims that this arrangement violates constitutional principles of legislative power delegation. The Fifth Circuit has ruled against this practice, but conflicting opinions from other circuits lead us to this pivotal Supreme Court showdown.
Key Tax Deadlines
📅 January 1, 2025. Reporting companies established before January 1, 2024, must submit Beneficial Ownership Information (BOI) reports to FinCEN.
📅 February 3, 2025. Individuals and businesses impacted by Hurricanes Beryl and Debby must file their taxes (learn more here).
📅 May 1, 2025. Tax filings due for residents of states affected by Hurricane Helene, including Alabama, Georgia, North Carolina, and South Carolina.
📅 September 30, 2025. Taxpayers affected by recent terrorist attacks in Israel must file by this date.
Upcoming Events
📅 December 12-14, 2024. Attend the ABA Section of Tax Conference in Las Vegas focused on criminal tax fraud. Register now!
📅 February 19-25, 2025. Join the ABA Tax Section for the Midyear Tax Meeting in Los Angeles. Sign up here!
Trivia Time!
According to the National Retail Federation, how many out of every five holiday shoppers have started their shopping before November?
(A) One
(B) Two
(C) Three
(D) Four
Check the bottom for the answer!
IRS Updates
The IRS has released its latest Internal Revenue Bulletin 2024-48 detailing operational updates and changes.
Additionally, the PCAOB has shared new resources for implementing QC 1000, a framework for quality control systems that all firms registered must comply with. For guidance on meeting these standards, check here.
In the Spotlight
White and Case just announced the promotion of Narissa Lyngen to counsel within their tax practice, focusing on cross-border taxation and M&A.
Vinson & Elkins recognized Lauren Meyers, Brent Schoradt, and Curt Wimberly as new counsels, bringing expertise in federal tax planning and renewable energy project financing.
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Have career updates to share? We want to hear from you! Submit them here! Or drop me a line!
What You Might Have Missed
Here’s a roundup of the most clicked topics from last week:
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Trivia Answer
The answer is (B) two! It seems many shoppers are eager to get a head start on their holiday shopping.
Shoppers are ready to roll!
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