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2025 Tax Updates

2025 Tax Updates

As of December 6, 2024, several tax law updates are slated to impact U.S. taxpayers in 2025:

IRS Inflation Adjustments for Tax Year 2025

The Internal Revenue Service (IRS) has announced annual inflation adjustments affecting over 60 tax provisions for the 2025 tax year. Key changes include:

Standard Deduction: For single filers and married individuals filing separately, the standard deduction increases to $15,000, up $400 from 2024. For married couples filing jointly, it rises to $30,000, a $800 increase.

IRS

Tax Brackets: Income thresholds for tax brackets have been adjusted upward. For instance, the 35% tax rate now applies to incomes over $250,525 for single filers and $501,050 for married couples filing jointly.

Newsweek

Expiration of Tax Cuts and Jobs Act (TCJA) Provisions

Many individual tax provisions from the 2017 TCJA are set to expire at the end of 2025, potentially leading to significant changes in 2026:

Income Tax Rates: Rates may revert to pre-2017 levels, resulting in higher taxes for many.

Kiplinger

Standard Deduction and Personal Exemption: The standard deduction could decrease, and personal exemptions may return.

Tax Policy Center

Child Tax Credit: The credit amount might be reduced, and eligibility criteria could tighten.

Kiplinger

Potential Legislative Changes

The current administration and Congress are considering tax reforms that could affect future tax years:

Extension of TCJA Provisions: Discussions are ongoing about extending certain TCJA provisions to prevent tax increases in 2026.

Kiplinger

New Tax Legislation: Proposals include changes to corporate tax rates, individual income taxes, and various deductions and credits.

Tax Policy Center

Need help planning for these updates? Our team is here to help! Contact us today and start taking control of your tax planning!

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Critical Compliance Requirement for your S-Corporation

As the year concludes, it’s essential to address a critical compliance requirement for your S-Corporation: establishing and processing officer payroll by December 31, 2024. This step is vital to adhere to IRS regulations and mitigate potential risks.

Why Officer Payroll is Necessary

The IRS requires that S-Corporation officers who perform substantial services receive reasonable compensation through payroll, subject to payroll taxes such as Social Security and Medicare.

Risks of Non-Compliance

Neglecting to process officer payroll can lead to:

IRS Audits and Penalties: The IRS may reclassify distributions as wages, resulting in back taxes, penalties, and interest.
Loss of Tax Deductions: Misclassified distributions may not qualify for tax deductions, increasing your tax liability.
Increased Payroll Tax Liability: Non-compliance can accrue significant payroll taxes and penalties for late payments.
Heightened Scrutiny: Failure to comply may attract closer examination in future tax filings.

Recommended Solution: Paychex Payroll Services

To ensure compliance and streamline payroll processing, we recommend partnering with Paychex, a reputable provider specializing in S-Corporation payroll services. Paychex offers:

Tailored Payroll Solutions: Customized services to meet the unique needs of S-Corp officers, including “Officer Only Payroll” options.
Comprehensive Tax Management: Automatic calculation, payment, and filing of federal, state, and local payroll taxes, ensuring timely compliance.
User-Friendly Platform: Access payroll information and manage processes through a secure online portal, enhancing efficiency.

Next Steps

Determine Reasonable Compensation: Assess a fair market salary for the services you provide, considering industry standards and your role.
Engage Paychex Services: Contact Paychex to set up your officer payroll, ensuring all processes are in place before year-end.
Consult with Us: For assistance in determining compensation or navigating payroll setup, please reach out promptly.

Our team is here to support you in meeting these requirements and safeguarding your S-Corporation from potential risks. Contact us or schedule a meeting at your earliest convenience.

Let’s ensure compliance and position your business for success in the coming year!

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Beneficial Ownership Information (BOI) filing deadlines

To Our Clients,

As part of the ongoing compliance requirements, we want to remind you about the Beneficial Ownership Information (BOI) filing deadlines and provide guidance on the necessary information to ensure your filings are accurate and timely.

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, has introduced significant reporting requirements for business entities, such limited liability companies, and limited partnerships, most corporations and on certain other business entities.

The BOI reports must disclose the identities and provide contact information for all of the entity’s “beneficial owners”, controlling 25 percent or more of the ownership interests in the entity or exercise substantial control over the entity.

1. Required Information for BOI Filings:

To meet BOI filing requirements, please prepare the following details:
● Basic Entity Information:

○ Full legal name
○ Trade names or DBAs (Doing Business As)
○ Complete address of the principal place of business
○ Jurisdiction of formation and registration number

● Beneficial Owners’ Information:
For each individual who directly or indirectly owns or controls at least 25% of the company, please provide:

○ Full legal name
○ Date of birth
○ Residential or business address
○ Nationality and country of residence
○ Identification number (passport, driver’s license, or another government-issued ID)

● Control Information:
In addition to beneficial owners, you must report individuals with significant control over the entity, such as executive officers or those who have authority over major decisions.

2. Filing Deadlines:

● Initial BOI Filing: Must be submitted by 12/31/2024. if you plan to open a new company, the BOI report will need to be filed within 90 days of registering with the state.

● Amendments: If any changes occur throughout the year (such as new owners, changes in information, or changes in control), they must be reported within 30 days of the change.

3. Penalties for Non-Compliance:
Failure to file accurate and timely BOI information can result in significant penalties. The government may impose fines or other consequences, so timely and complete filings are essential.

4. How We Can Help:
Our team is available to assist in gathering and reviewing your BOI information, ensuring all details are complete and correct. We can also handle submission on your behalf if needed, but you must contact us to request our service and to make arrangements. We will ask that all Beneficial Owners and those with significant control obtain a FINCEN ID https://fincenid.fincen.gov/landing

Please let us know if you have any questions or need further clarification on the filing requirements. We’re here to support you and make this process as seamless as possible.

Best regards,

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Early Tax Preparation

Early Tax Preparation

As the year draws to a close, tax season is just around the corner. While most tax preparation happens in the new year, starting early can make the entire process smoother and less stressful. To help you kickstart your planning, we’ve compiled a few key questions to consider as you prepare for tax season!

For Individuals:

Have I organized my financial documents?
- Consider what documents you need, such as W-2s, 1099s, and receipts for deductible expenses.
Am I keeping track of potential deductions?
- Start listing expenses that may be deductible, such as medical expenses, charitable contributions, or business-related costs.
Do I have a plan for when I will file my taxes?
- Decide whether to file early, on time, or request an extension based on your circumstances.

The Tax Professional Group simplifies tax season for individuals and families by providing expert guidance, maximizing refunds, and ensuring accurate, stress-free filing.

For Business Owners/Employers:

Do I have all completed W-9 forms on file?
- This form is needed to prepare and issue 1099s.The filing due date for Forms 1099-NEC is January 31, 2025, if filed by paper or electronically.
What assets do I need to purchase to help lower my tax liability?
- Now is the time to do your research on those qualifying purchases to be sure that the purchase is made before year end.
Have I reviewed recent tax law changes that might impact my business?
- Stay informed about new tax laws, credits, and deductions relevant to your industry and business size.

The Tax Professional Group helps business owners streamline tax season by preparing and simplifying the filing process.

For more information about the latest reporting requirements and helpful tax resources, visit https://cukierski.cpa/blogs/new-fincen-reporting-requirements-understanding-the-upcoming-changes/

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TaxPG Announcement

Dear Client,

We hope this letter finds you well. We are excited to share some important news regarding the ownership and expanded services of The Tax Professional Group.

As you may know, TAXPG, LLC acquired The Tax Professional Group, Inc. earlier this year. As part of the acquisition, TAXPG, LLC will now be leading the forefront of the business’ daily operations and management. This means that the prior owners, Karla St. John, along with John Bolan, will now be serving a limited supporting role in assisting TAXPG, LLC to provide you with the best services possible. Although Karla and John may offer their expertise in an advisory capacity on occasion to the firm, all client work and communications will now be facilitated by TAXPG, LLC’s dedicated team at the Naples, Florida office.

Accordingly, please direct all future correspondence, inquiries, and service requests to our Naples office listed below so that ensure your matters are handled in a timely fashion.

The Tax Professional Group
875 94th Avenue N. Suite 4
Naples, FL 34108
(239) 598-9901
office@taxpg.com

Christina Stein (christina@taxpg.com) and Edyta Grabowska (edyta@taxpg.com) are the points of contact regarding tax issues. Melissa Propatier (melissa@taxpg.com) is the point of contact regarding bookkeeping, financial statement, payroll, and sales tax issues. Other inquiries and issues can be directed to office@taxpg.com.

Furthermore, by partnering with our trusted associates at Cukierski & Associates, LLC (cukierski.cpa) and TAVAS,LLC (tavasllc.com), we will now be able to offer our clients a broader range of services. Rest assured this transition will not only ensure that we continue to provide you with the highest quality of service, but will also provide you with enhanced capabilities, services, and opportunities through our new affiliations.

By partnering with Cukierski & Associates, LLC, we will be able to offer comprehensive tax assistance and preparation services along with attest services, including audits, reviews, and compilations of financial statements. They also provide forensic examination services, community association attest and tax services, and non-profit organization audit services we believe will be valuable to all of our clients.

Additionally, TAVAS, LLC specializes in strategic services such as tax planning and implementation for closely held businesses, business valuations, business planning, succession planning, transition planning, and tax defense support.
We are confident that these incorporated additions will prove to be an asset to the business, you and the rest of our clients. These changes will enhance our ability to serve you more efficiently and effectively. Should you have any questions or need further information regarding this transition or the expanded services we now offer, please do not hesitate to contact us.

Thank you for your continued trust and loyalty as a Tax Professional Group client. We look forward to serving you under our new management and meeting all of your tax, bookkeeping, and accounting needs with our broadened resources.

Warm regards

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Meet the Team

The People Behind The Numbers

With the Tax Professional Group, we don’t just specialize in one aspect of taxes. Our team comes with a diverse set of skills and specializes in all areas of taxation to help you with any kind of task. With a team that can wear as many hats as us, there’s nothing we can’t achieve together! Take a look at a few roles that make our team members stand out.

Tax Accountants
Our tax accountants and income tax preparers know tax laws inside and out, making them invaluable resources for maximizing your returns, ensuring compliance, and providing expert guidance tailored to your unique financial situation. Our accountants quickly understand your goals, handle the numbers efficiently, and do it all with a friendly approach.

Bookkeepers
If you’re looking for extra help organizing your finances and keeping your goals on track, our bookkeepers are who to call! From organizing payroll to handling day-to-day functions, we have an acute attention to detail and check your documents thoroughly so everything is always accurate and on time.

Payroll Specialists
If you’re a business owner, then our payroll specialists are just the people you want managing your finances! These detail-oriented team members are always on top of deadlines so your employees are paid the right amount and on-time, making your payroll process a breeze.

Client Facilitators
These team members are the face of our company, managing all communications between our team and our clients. As your main point of contact, their job is to understand your needs and provide timely solutions so you have the best experience possible. Whatever questions or concerns you might have, our client facilitators can help!

Each member of our team is equipped to seamlessly handle a combination of these roles, ensuring that all of your tax needs are fully addressed with expertise and care. Get in touch with our awesome team today to kickstart your finances!

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Simplify Your Taxes With Our Expert Services

At the Tax Professional Group, we understand that your taxes can be complicated. That’s why we’re here to offer expert guidance and a range of services tailored to meet your unique needs. Whether you’re handling your tax return for the first time or looking to streamline your small business tax filings, our team is ready to simplify the process and help you keep more of what you earn. Let’s take a look at some of the services we can offer you!

Income Tax Preparation
Income tax preparation is our specialty! Whether you’re a small business or an individual, the Tax Professional Group can help you file your annual tax return so you can spend more time doing what you love. We have all the knowledge and experience you need so you can get your taxes done quickly and accurately!

International Taxation
Having trouble sorting through all the international tax laws? We can help navigate international tax planning to make sure you’re compliant with various tax laws while also optimizing your tax situation to save money.

Bookkeeping Preparation
Maintaining your financial data is crucial to making sound business decisions. From preparing financial statements to the day-to-day record keeping, our bookkeeping services help you stay organized and keep your business on the right track.

Payroll Reporting
Professional payroll reporting helps keep small businesses compliant, financially stable, and fosters strong connections with employees. We know how crucial it is to report accurately and on time, so you can rely on us to handle compliance while you focus on running your business and taking care of your team.

Sales Tax Reporting
Sales tax is a constant in business, and the last thing you want is to face legal issues due to inaccurate reporting. Our sales tax reporting service ensures you stay in good standing with tax agencies, manage your sales tax rates effectively, and remain compliant with local regulations. Let us handle the complexities of sales tax reporting so you can focus on running your business smoothly.

Advanced Tax Planning
Ready to take your taxes to the next level? The Tax Professional Group offers advanced strategies to elevate your tax planning, including strategic income management, tax deferrals, and tailored approaches to meet your long-term financial goals. Let us guide you towards achieving financial security and optimizing your tax efficiency

Not seeing a particular service you are looking for? Our partner organizations, Cukierski & Associates LLC and TAVAS, can help! Together, they provide additional services such as succession planning, transition planning, forensic examination services, non-profit organization audit services, and more!

Ready to simplify your taxes? Reach out now to schedule a consultation and take the first step toward effortless tax solutions and financial clarity. Let us handle the complexities so you can focus on what matters most to you!

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2024 Deadlines

Page Last Reviewed or Updated: December 20, 2023

Tax Returns

Corporate Tax Form 1120S – 3/15/2024

Partnership Tax Form 1065 – 3/15/2024

*Provide K-1 to each shareholder – 3/15/2024

*Form 2553 due to elect S-Corporation status for Tax Year 2024 – 3/15/2024

Tangible Personal Property Return to Lee County – 4/1/2024

Tangible Personal Property Return to Collier County – 4/1/2024

Corporate Tax Form 1120 – 4/15/2024

Individual Tax Form 1040 – 4/15/2024

Individual Tax Form 1040NR (with wages subject to U.S. withholding) – 4/15/2024

Estates & Trusts Tax Form 1041 – 4/15/2024

Foreign Bank Account Reporting FinCEN Form 114 – 4/15/2024

Charity and Non-Profit Entity’s Form 990 – 5/15/2024

Individual Tax Form 1040NR ( subject to U.S. withholding) – 6/15/2024

Tax Extension Requests

Corporate (1120S) Extension Form 7004 Request – 3/15/2024

Partnership (1065) Extension Form 7004 Request – 3/15/2024

Corporate (1120) Extension Form 7004 Request – 4/15/2024

Individual (1040) Extension Form 4868 Request – 4/15/2024

Foreign Bank Account Reporting FinCEN Form 114 – Automatic 6-months extension granted

Individual Tax (1040NR – with wages subject to U.S. withholding) Extension Form 4868 Request – 4/15/2024

Charity and Non-Profit (990) Extension Form 8868 Request – 5/15/2024

Individual Tax (1040NR – without wages subject to U.S. withholding) Extension Form 4868 Request – 6/15/2024

Extension Due Dates

Extended Corporate Form 1120S – 9/16/2024

Extended Partnership Form 1065 – 9/16/2024

Extended Corporate Form 1120 – 10/15/2024

Extended Individual Form 1040 – 10/15/2024

Extended Estates & Trusts Tax Form 1041 – 9/30/2024

Extended Foreign Bank Account Reporting FinCEN Form 114 – 10/15/2024

Extended Charity and Non-Profit Form 990 – 11/15/2024

Extended Individual Form 1040NR (with wages subject to U.S. withholding) – 10/15/2024

Extended Individual 1040NR (without wages subject to U.S. withholding) – 12/16/2024

Estimated Payments Schedule

*Make Check Payable to: “United States Treasury.” On the memo line of your check include your Social Security Number and payment type & period (i.e., “1^st Qtr. 2024 Estimated Payment).

1^st Qtr. 2024 Estimated Payment Due 4/15/2024

2^nd Qtr. 2024 Estimated Payment Due 6/17/2024

3^rd Qtr. 2024 Estimated Payment Due 9/16/2024

4^th Qtr. 2024 Estimated Payment Due 1/15/2025

Florida Business Entities

Annual Report – Due by 5/1/2024

File online with the Florida Department of State at www.Sunbiz.org

Payroll Reports

Tax Year 2023

940 Annual Federal Unemployment Report

Postmarked on or before 1/31/2024

941 and RT-6 State Reemployment

4^thQtr. Postmarked on or before 1/31/2024

Tax Year 2024

941 and RT-6 State Reemployment – 2024 Quarterly Due Dates:

1^st Qtr. Postmarked on or before 4/30/2024

2^nd Qtr. Postmarked on or before 7/31/2024

3^rd Qtr. Postmarked on or before 10/31/2024

4^thQtr. Postmarked on or before 1/31/2025

**As of 1/1/16, you are required to file and pay RT-6 State Reemployment online at https://brtx-fl-uc.bswa.net/**

**If your payroll tax liability is over $2,500 each quarter you are required to make monthly 941 deposits.

you are required to make semi-weekly 941 deposits.

(Over these thresholds, if you distribute payroll weekly, you are required to make weekly deposits. If you distribute payroll bi-weekly, you are required to make bi-weekly deposits.)

*If you have Employees:

W-2 ̶ 2023 Forms are due to be postmarked to recipients by 1/31/2024
Red Form W-3/W-2 must be mailed to the Social Security Administration by 1/31/2024

*If you have Subcontractors:

1099 ̶ 2023 Forms are due to be postmarked to recipients by 1/31/2024
Red Form 1096/1099 must be mailed to the Internal Revenue Service by 1/31/2024

Sales Tax

Monthly Filers

*Florida Department of Revenue Link:

http://dor.myflorida.com/dor/eservices/filepay.html

Online payments must be initiated prior to the 20^th of the following month after the end of sales tax period.

Quarterly Filers

1^st Qtr. Due 4/19/2024

2^nd Qtr. Due 7/19/2024

3^rd Qtr. Due 10/18/2024

4^th Qtr. Due 1/20/2025

Semiannual Filers

January – June Due 7/19/2024

July – December Due 1/20/2025

Annual Filers

Due 1/20/2025

**Due dates that occur on a weekend or holiday must be paid by 5pm on the prior business day to avoid late penalties.

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Identity Theft

Page Last Reviewed or Updated: December 20, 2023

Identity Protection PIN

The IRS Identity Protection PIN (IP PIN) Program has been expanded to all taxpayers who can properly verify their identity.

This is a six-digit number assigned to eligible taxpayers to help prevent their Social Security number from being used to file fraudulent federal income tax returns. This number helps the IRS to verify a taxpayer’s identity and accept their tax return.

An eligible taxpayer will be able to get the IP PIN online by accessing the Get an IP PIN tool on the IRS website by following the link to this page:

https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

Here is what you need to know before applying:

The Get an IP PIN tool is the preferred method of obtaining the IP PIN and the only one that immediately reveals the IP PIN to the taxpayer.
The number is valid for one year. Each January, the taxpayer must get a new number.
The number must be entered on electronic and paper tax returns.
Taxpayers with either a Social Security Number or Individual Tax Identification Number who can verify their identity are eligible for the program.
Any primary or secondary taxpayer or dependent can get an IP PIN, if they can prove their identity.

Once you obtain the IP PIN, you will need to notify our office so that we can include this information on your tax return.

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Recent Scams

Page Last Reviewed or Updated: December 20, 2023

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use regular mail, telephone, and email to set up individuals, businesses, payroll and tax professionals.

The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Know the telltale signs of a scam and how to know if it’s really the IRS.

Scams

Learn to recognize and avoid scams. Be on the lookout for scams. Thieves use phishing emails, threatening phone calls, fax, and texts to pose as IRS employees or other legitimate government or law enforcement agencies. If someone calls asking for personal information, do not give out such details. Scam artists remain hard at work with new variations of scams.

Keep in mind that the IRS will never demand immediate payment, threaten, ask for financial information over the phone, or call about an unexpected refund or Economic Impact Payment. If you are worried about a tax problem or are in doubt, call our office before you make payment or provide information to a third party.

The IRS updates a website list which details a variety of common scams that taxpayers may encounter anytime. Many of these schemes peak during tax filing season. Please follow the link below for a summary of these concerning fraud tactics.

https://www.irs.gov/newsroom/tax-scamsconsumer-alerts

Scams targeting taxpayers (recent)

New scam mailing related to unclaimed refunds

Filing season scams involving fake Form W-2 wages

Charity fraud awareness

Beware of OIC mills – avoid costly promoters advertising settlement with the IRS for “pennies-on-the-dollar”

Scam targets educational institutions, including students and staff

Identity theft and unemployment benefits

Scams related to natural disasters

IRS impersonation telephone scams

Security Awareness

Whether you are online for work, school, shopping or browsing, online security is more important than ever during this time. Everyone needs to be mindful of risks they may encounter when they share devices, shop online and/or interact on social media.

Security is important. Do not reveal too much information about yourself. Keep data secure by only providing what is necessary. For example, birthdays, addresses, age and especially Social Security numbers should not be shared freely.

Use software with firewall and anti-virus protections. Make sure your security software is always turned on and can automatically update. Make sure all family members have comprehensive anti-virus protection for their devices, particularly on shared devices.

Use strong, unique passwords for each account and encrypt sensitive files such as tax records, school transcripts and college applications.

Protect your personal data. Adults should advise younger users to shop at reputable online retailers.

Know the risk of public Wi-Fi. Connection to public Wi-Fi is convenient and often free, but it may not be safe. Hackers and cybercriminals can easily steal personal information from these networks. Always use a virtual private network when connecting to public Wi-Fi.

Email Spoofing

Email spoofing is one of the most common forms of cybercriminal activity. Email spoofing is the forgery of an email sender address so that the message appears to have come from someone other than the actual source. Spammers will often spoof emails in order to encourage recipients to open, reply to, or even act in response to their solicitations. While it is not possible to prevent cybercriminals from spoofing email addresses, as they continuously find new ways to trick their targets, you can take the following proactive actions:

Remember to never click on links or download attachments from unknown or suspicious emails.
Always make sure you recognize the sender before opening the email.
Be alert to emails that use bank names and government organizations that lure you into opening attachments. Be alert to emails from FedEx, UPS, PayPal, and Amazon.
Never open any attachments if the sender is unknown. Always verify.
Never open emails with multiple misspellings.
Any attachment with a .zip or .exe extension should be avoided.
Billing issues are usually not sent by email. Always verify before opening.
Never open emails that include the message “Your computer is affected”.
Never open emails that include the message “You sent us an infected email”.
Avoid opening emails with the message “IRS notification”. IRS never sends notifications by e-mail.
Do not open emails that ask you to “Verify your account”.