Corporate Transparency Act
& BOI Reporting Update
The Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) Reporting requirements are back on after a temporary halt. However, the reporting is currently voluntary as the 5th Circuit Court considers its constitutionality. Businesses should prepare to comply with BOI reporting in case the ruling upholds the regulations.
At this time, we are not accepting any new client engagements for filing these. However, for those clients we have already committed to assisting, we will honor our commitment to complete those projects.
If you need to file these reports, they can generally be completed through FinCEN’s website.
If you have questions about your obligations, we are here to help guide you through the process.
Office Closures & Limited Availability
We will be closed for staff development on the following dates:
– Friday, February 7th
– Presidents’ Day – Monday, February 17th
While we will not be available for client meetings and phone calls on these dates, we will be monitoring emails. Please anticipate any delay in response to be followed up on the next business day.
Upcoming Tax Deadlines
Ensure compliance by keeping track of the following key tax deadlines:
– March 17, 2025 – Partnership and S Corporation Tax Returns Due (Form 1065 & 1120S)
– April 15, 2025 – C Corporation and Individual Tax Returns Due (Form 1120 & 1040)
– April 15, 2025 – Trust and Estate Tax Returns Due (Form 1041)
– May 15, 2025 – Texas Franchise Tax Report Due
March 15th falls on a Saturday so the returns are due the following Monday, March 17, 2025. Timely filing helps avoid penalties and interest, so please prepare accordingly. While tax deadlines don’t really change year after year, it is important for taxpayers to try and get their returns done and payments in to avoid unnecessary penalties.
When an extension is filed it is an extension of time to file the return, but there is no extension of time to pay the IRS what they are due. The only exception to this is during certain disaster relief efforts.
Engagement Agreements, Tax Organizers & Operational Changes
We have been rolling out client organizers and engagement agreements starting the week of February 3rd. Please be on the lookout for these documents, as timely completion is critical to staying on track for tax deadlines.
Additionally, we have implemented a few operational changes to enhance efficiency and ensure timely service:
Deposit Requirement: A deposit will now be required for all client engagements prior to work beginning on the project. For existing tax clients, this generally will be approximately 50% of the preparation fee prior to the previous year.
New Payment Options: You can now pay directly through our client portal, which allows you to store card and/or ACH bank information on file for faster and easier payments.
Automated Invoice Reminders: Beginning this month, you will receive automated reminders for invoice payments for balances due and outstanding.
Bookkeeping & Document Deadlines:
February 28 – Completed books and records for partnerships & S corporations must be submitted.
March 15 – Completed books and records for C corporations must be submitted.
March 21 – Completed organizers and personal tax documents must be submitted.
Failure to meet these deadlines may result in the need to file an extension. We strongly recommend getting started early to avoid last-minute complications. For clients we maintain books for we ask that you provide us with any missing information including but not limited to bank statements to ensure that we can have your books updated in time for the deadline.
Tax & Advisory Insights for Small Business Owners
Ensuring Proper Record-Keeping & Compliance
Accurate and comprehensive record-keeping is the foundation of sound financial management and compliance. Small business owners should establish strong bookkeeping practices to ensure transparency, minimize tax liability, and reduce audit risks. Here are some compliance and recordkeeping tips to ensure you stay up to speed.
Comply with Payroll and Tax Filing Requirements: Ensure employee payroll taxes, estimated tax payments, and sales tax filings are completed on time to avoid interest and penalties. Generally, we recommend clients use a payroll service that not only pays employees but also remits payments to taxing authorities and files these critical forms on their behalf. Common vendors include QuickBooks Payroll, ADP, and Paychecks. For more advanced needs a PEO service such as Insperity can be used as well.
Retain Records for the Recommended Period: The IRS generally requires businesses to keep records for at least three to seven years, depending on the type of deduction or tax event. Important documents include tax returns, W-2s, 1099s, bank statements, and receipts. The easiest way to meet this requirement is to digitize your records with backups. This simple administrative function usually ends up not only saving space but ensures that your important data is weatherproofed from acts of God such as fire and water damage.
By implementing these best practices, business owners can maintain financial stability, optimize tax savings, and ensure compliance with federal and state regulations.
Final Thoughts
With tax season ramping up into full swing, timely action is critical. Please review the deadlines and updates carefully to ensure a smooth filing process. If you have questions or need personalized tax strategies, do not hesitate to reach out.
We will be expanding our content into a podcast set to release by Q2 this year. If you have any content ideas or thought on things we can do to help you maximize your 2025, please feel free to drop us a line.
- Inside the Loophole – February Important Tax Updates, Business Advisory Insights, and Key Deadlines for 2025 - February 6, 2025
- Inside the Loophole – CTA Injunction - December 4, 2024
- Inside the Loophole – Thanksgiving 2024 - November 22, 2024