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  • Federal Court in Alabama Holds Corporate Transparency Act Unconstitutional

    March 5, 2024

    A federal district court in Alabama held that the Corporate Transparency Act (CTA), P.L. 116-283, which requires the reporting of beneficial ownership information (BOI) by businesses, is unconstitutional. The district court granted the plaintiffs' motion for summary judgment Friday in the case of National Small Business United v. Yellen, No. 5:22-cv-1448-LCB (N.D. Ala. 3/1/24). One plaintiff, the National Small Business Association, has over 65,000 members. While the legislation may have "sensible and praiseworthy ends," the court stated in its opinion, the government's arguments that Congress has "the power to regulate millions of entities and their stakeholders the moment they obtain a formal corporate status" from a state "are not supported by precedent." The act "exceeds the Constitution's limits on the legislative branch and lacks a sufficient nexus to any numerated power to be a necessary or proper means of achieving Congress' policy goals," the opinion said.

  • U.S. Beneficial Ownership Information Registry Now Accepting Reports

    January 8, 2024

    January 1, 2024 -Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting beneficial ownership information reports. The bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the United States to report information about the individuals who ultimately own or control them.

  • BOI: Corporate Transparency Act and CPA Firms

    January 2, 2024

    Enacted as part of the 2021 National Defense Authorization Act and amending the Bank Secrecy Act, the Corporate Transparency Act (CTA) is intended to close a perceived information gap related to money laundering and other illicit acts. The CTA requires reporting companies to self-report information to the Treasury Department’s Financial Crimes Enforcement Network (Fin-CEN) about their beneficial owners and company applicants. Determining whether a company is considered a “reporting company” and whether an individual is considered a “beneficial owner” or a “company applicant” under the CTA is complex, and failure to comply with the CTA can result in civil or criminal penalties (or both). For instance, the failure to comply with the statutorily-mandated reporting timeframes regarding the filing of initial or updated reports could result in a $500-per-day penalty (up to $10,000) and up to two years of imprisonment. Additionally, any person who, without authorization, knowingly discloses or uses beneficial ownership information (BOI) can be fined $500 per day (up to $250,000) and imprisoned for up to five years.

  • Business standard mileage rate increases for 2024

    December 19, 2023

    The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 67 cents per mile driven, up 1.5 cents from 2023. The increased rate is effective as of Jan. 1, 2024 (Notice 2024-08).

  • AICPA and others call for a one-year extension of BOI report deadline

    November 3, 2023

    The AICPA and over 50 affiliated organizations recommended in a letter to Treasury's Financial Crimes Enforcement Network (FinCEN) that the agency extend the effective date for the beneficial ownership information (BOI) reporting requirement by one year to give the millions of affected businesses time to learn about the new and complex rules. The letter asked that the scope of the one-year deadline delay include not only new entities created in 2024, but all entities created thereafter and all entities making updates or corrections to their original filings.

  • IRS announces withdrawal process for Employee Retention Credit claims;

    October 20, 2023

    IRS announces withdrawal process for Employee Retention Credit claims; special initiative aimed at helping businesses concerned about an ineligible claim amid aggressive marketing, scams

  • IRS: Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief; Oct. 16 filing deadline, other dates postponed to Oct. 7, 2024

    October 13, 2023

    WASHINGTON — The Internal Revenue Service today announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions.

  • IRS Releases Contingency Plan for Government Shutdown

    September 29, 2023

    Calls will go unanswered and mail will get no response under the IRS contingency plan for the first five days of a federal government shutdown. The plan, released Thursday, calls for furloughs of two-thirds of IRS staff if the government shuts down, resulting in "significant harmful impacts" on millions of taxpayers, Treasury said. The fiscal 2024 Lapsed Appropriations Contingency Plan will go into effect when the IRS is notified that government appropriations have lapsed and that a shutdown is to be initiated. All furloughed IRS employees will be able to return to work, and the Service will resume normal operations, when funds are appropriated. To avoid a shutdown, Congress must approve a budget for fiscal 2024 or a continuing resolution that keeps the government operating temporarily by Saturday, Sept. 30. If a government shutdown lasts for more than five business days, the IRS human capital officer will coordinate a Service-wide reassessment of the excepted activities. With the Oct. 16 deadline looming for some 10.5 million individual tax returns on extension, here is a look at IRS operations that would stop and those that would continue under the plan.

  • Top 99 Metro Areas for Accountants (Little Rock metro area ranks #4 out of top 99)

    September 21, 2023

    Little Rock, North Little Rock, and Conway metro area ranked #4 out of 99 top metro areas for accountants in 2023.

  • Red flags for Employee Retention Credit claims; IRS reminds businesses to watch out for warning signs of aggressive promotion that can mislead people into making improper ERC claims

    September 18, 2023

    The Internal Revenue Service continues to warn businesses to watch out for aggressive marketing by nefarious actors involving the Employee Retention Credit (ERC) and urged people to watch out for red flags that can signal trouble.