Archives for December 2024

Federal Judge Blocks BOIR Rules Enforcement

In a significant legal development, a federal judge has issued a nationwide preliminary injunction blocking the enforcement of the Beneficial Ownership Information Reporting (BOIR) rules under the Corporate Transparency Act (CTA).

As a result, this would have required 32.6 million existing small businesses and 5 million new entities formed each year from 2025 to 2034,  to report their BOI to the FinCEN. This decision handed on December 3, 2024, has temporarily halted the requirement for businesses to report their BOI to the FinCEN.

This ruling has significant implications for businesses across the United States. Many small-business owners were unaware of the new rules. Additionally, the taxpayers who knew, often struggled to understand whether they were required to file and what information was needed. The injunction provides a reprieve, allowing businesses more time to prepare and understand their obligations.

Uncertainty Still Looming

The blocking of the BOI reporting rules marks a pivotal moment in the ongoing debate over financial transparency. This injunction is temporarily and it will be probably fought all the way up to the Supreme Court. That is why we recommend that you still file your BOIR and comply with CTA. Until this law is found unconstitutional,  make sure to stay informed about the latest developments and consult with tax professionals to ensure compliance.

You can check our YouTube channel for more subjects that you might find useful. Also, if you are in need of a good CPA firm for your business contact us!

Please note that this blog post is for informational purposes only and does not constitute tax, legal or accounting advice.

This blog post can help you understand the Form 8918. This form, known as the Material Advisor Disclosure Statement, plays a crucial role in the tax reporting process for certain advisors.

Form 8918 is used by material advisors to disclose reportable transactions to the IRS.

Form 8918 is used by material advisors to disclose reportable transactions to the IRS. A material advisor is any person who provides material aid, assistance, or advice regarding the organization, management, promotion, or reporting of a reportable transaction and directly or indirectly derives gross income in excess of a specified threshold from such services.

Do You Need To File This Form?

If you are a material advisor, then you are required to file this form if you are involved in reportable transactions. These transactions are defined by the IRS and include certain types of tax shelters and other transactions that the IRS has identified as having the potential for tax avoidance or evasion.

Why Is This Form Important?

Filing Form 8918 is important for maintaining transparency with the IRS. In addition, failure to file this form can result in significant penalties. It is important that you are aware of the reportable transactions to ensure compliance. In addition, you should consider consulting a tax professional that can provide you guidance.

You can check our YouTube channel for more subjects that you might find useful. Also, if you are in need of a good CPA firm contact us!

Please note that this blog post is for informational purposes only and does not constitute tax, legal or accounting advice.