News

Retired fire, EMS, and police personnel can reduce their taxable earnings by up to $3,000 for medical insurance premiums paid during a calendar year under the HELPS Retiree Act. ​

Prior to 2023, there was a requirement that the premium had to be deducted from the retiree’s pension check to qualify for the HELPS tax reduction. This is no longer the case following the adoption of the Federal Secure 2.0 retirement law.

• Premiums paid directly for health, accident, or long-term care insurance qualify for the tax credit.
• The reduction is claimed on the retiree's personal 1040 tax form on Line 5B or a similar adjustment. ​
• Married couples where both parties are retired police/fire/EMS may take a reduction of up to $6,000. ​
• The tax break is not available to surviving spouses.

A.J. Reynolds, EA, presented a 1 hour Virtual Webinar to GAEA on the Corporate Transparency Act which was recorded on Jan 29, 2024.

The link for the recording is shown below along with the links to the slide deck and links to his reference CTA / BOI material.

To view the recording, click on the Recording Link and supply the passcode (you may want to copy and paste the passcode for your convenience).

CTA Webinar with A. J.  Reynolds

 Passcode is QY1B*q4#

CTA and BOI Resource Material

CTA BOI Resource Information

CTA Act BOI Reporting Slides

From the IRS:

2.  New requirement for most businesses beginning Jan. 1, 2024

Beginning on Jan. 1, 2024, many corporations, limited liability companies and other entities created or registered to do business in the United States must report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

FinCEN.gov/BOI provides guidance to help the small business community understand these requirements and includes:

• Answers to frequently asked questions,
• Infographics about key filing dates and key questions and
• An introductory video and more detailed informational video.

Contact FinCEN for more information and answers to any questions.

The IRS has released final regulations regarding certain user fees that tax return preparers have to pay.  The PTIN fee is now $11, plus $8.75 for the processing fee, for a total of $19.75.

In 2010 the total fee was $63 and in 2015 the IRS reduced it to $50.  After a flurry of lawsuits and appeals starting in 2017, the Courts determined that the charges need only to be reasonably related to the cost to the agency and the value to the recipient.   In 2023, the court concluded that the PTIN fees for fiscal years 2011 through 2017 were excessive.

TD 9980, October 4, 2023

For tax years beginning on or after January 1, 2022, S-Corporations and Partnerships may annually make an irrevocable election to pay income tax at the entity level  (HB 149).    Georgia Dept. of Revenue has posted FAQs on its website.

https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq

Congress is considering bills that may ease limits on disaster loss reductions.

https://www.wsj.com/articles/are-your-2021-disaster-losses-tax-deductible-congress-will-decide-11634290207?st=bj3yk4exfbnlhlm&reflink=article_email_share

The IRS plans to start sending out the new advance child tax credit payments to eligible taxpayers on July 15th.  Letters are being sent to taxpayers who appear to be eligible for the advance credit payments.

https://www.irs.gov/newsroom/irs-sending-letters-to-more-than-36-million-families-who-may-qualify-for-monthly-child-tax-credits-payments-start-july-15

The taxpayer advocate posted a blog last Thursday announcing the IRS has a return processing backlog of more than 29-million tax returns at this point.

Causes include inability to reprogram IRS computers for late tax law changes Congress passed in December and March, as well as resource overload from additional activities loaded onto the IRS by Congress.

https://www.taxpayeradvocate.irs.gov/news/nta-blog-2021-filing-season-bumps-in-the-road-part-1/

IRS officials are telling tax professional organizations that taxpayers should not file amended 2020 tax returns at this time to claim the new $10,200 tax exclusion for 2020 payments of unemployment compensation.

IRS Commission Charles Rettig told a Congressional committee on Thursday, March 18th that he expects the IRS will be able to identify the alread-filed 2020 returns that contain unemployment income and send taxpayers refunds based on the new 2020 exclusion.

The IRS has finally responded to pleas from members of Congress and tax professional organizations and extended the regular tax filing deadline for 2020 individual income tax returns to May 17, 2021.

The extension will cover both the filing of an individual 2020 tax return and any 2020 tax due.

https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

The extension does not apply to other tax returns or payments normally due on April 15th - for example the first quarter 2021 estimated tax payments are still due on April 15th.

The IRS has announced that further guidance will be provided regarding all the tax deadlines and procedures impacted by the filing extension.

Chet Burgess, EA, NTPI Fellow