Robin T Snellgrove CPA LLC

03/31/2026

Here is the latest update on House Bill 3368, the tax conformity bill.

Earlier today, the bill was debated on the floor of the Senate. Ultimately, it was not adopted (Ayes: 16, Nays: 27). As a result, South Carolina has not updated its Internal Revenue Code to conform with the federal code for 2025 filings, including provisions in the One Big Beautiful Bill Act.

While it is still technically possible that the bill could be reconsidered, that outcome does not appear likely at this time.

03/27/2026

Latest on non conformity. This does not extend federal returns.

02/17/2026

Do you know about non conformity between state and federal tax laws?🤔Tax non-conformity occurs when a state’s tax laws do not align with the federal Internal Revenue Code (IRC). Since most states use federal data (like Adjusted Gross Income) as the starting point for their own tax returns, any change to federal law can automatically affect state revenue and taxpayer liability—unless the state chooses to "decouple" from those changes.

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, significantly altered federal tax rules, but South Carolina is currently a "static conformity" state. This means the state remains tied to the federal tax code as it existed on December 31, 2024.

Because the South Carolina Legislature has not yet passed a law to adopt the OBBBA changes, there is a major non-conformity gap for your 2025 tax return (filed in 2026).

Key State vs. Federal Mismatches
If you claim certain OBBBA benefits on your federal return, you must currently "add back" that income on your South Carolina return, essentially paying state tax on money the federal government now considers tax-exempt.

No Tax on Tips & Overtime: Federally, you can deduct up to $25,000 in tips and $12,500 in overtime. In South Carolina, these are currently fully taxable and must be added back to your state income.

Senior Deduction: The new federal $6,000 senior deduction (for ages 65+) is not recognized by South Carolina. You cannot use this to lower your state tax bill.

SALT Cap: While the federal government raised the State and Local Tax deduction cap to $40,000, South Carolina still enforces the old $10,000 limit.

Standard Deduction: The federal standard deduction increased by roughly $750 to $1,500 depending on filing status. South Carolina requires you to add this difference back to your state taxable income.

Filing Status for 2026
As of mid-February 2026, South Carolina tax professionals recommend filing based on current law (with the add-backs). While the legislature is considering Bill 4216 to overhaul state taxes and potentially address conformity, it has not yet passed. If they pass retroactive conformity later this year, you may need to file an amended state return to get a refund on those add-backs. Sometimes the State will automatically correct the differences in the non conformity and sometimes they require amended returns.

I will keep you abreast of SC conformity issues.

01/04/2026

It’s that time of year again!
The IRS will open the filing window the last week of January, as of now. There are some big changes enacted by the “One Big Beautiful Bill”.
• Increased standard deductions
• Taxpayers 65 and over will get an additional $6,000 standard deduction to offset any social security that was taxed.
• Taxpayers getting tips and/or overtime will receive a standard deduction to offset that income.
• The child tax credits for children under 17 will be $2200, of which $1700 is refundable.
• The SALT (state and local tax) cap goes from $10000 to $40000.
• Interest expense on new cars finished in the US is fully deductible, WHETHER YOU ITEMIZE OR NOT.
• New business mileage rate is 72.5 cents per mile for 2026 up from .70 for 2025.
• Newborn savings account of $1000 which grows tax free until the child is 18.
• 100% bonus depreciation has been made permanent for businesses.
Contact us if you want more information.
It’s that time of year again!
The IRS will open the filing window the last week of January, as of now. There are some big changes enacted by the “One Big Beautiful Bill”.
• Increased standard deductions
• Taxpayers 65 and over will get an additional $6,000 standard deduction to offset any social security that was taxed.
• Taxpayers getting tips and/or overtime will receive a standard deduction to offset that income.
• The child tax credits for children under 17 will be $2200, of which $1700 is refundable.
• The SALT (state and local tax) cap goes from $10000 to $40000.
• Interest expense on new cars finished in the US is fully deductible, WHETHER YOU ITEMIZE OR NOT.
• New business mileage rate is 72.5 cents per mile for 2026 up from .70 for 2025.
• Newborn savings account of $1000 which grows tax free until the child is 18.
• 100% bonus depreciation has been made permanent for businesses.
Contact us if you want more information.

Send a message to learn more

09/23/2025

Am I right? 🥴

03/03/2025

I think this is finally the end of it!

The Treasury Department announced March 2 that it will no longer enforce the Corporate Transparency Act or the associated Beneficial Ownership Information reporting requirements.

Furthermore, the agency announced that, “Not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either."
The Treasury Department said it will further be issuing a proposed rule that will narrow the scope of the rule to foreign reporting companies only.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

Send a message to learn more

02/28/2025

IRS Individual Online Account tool adds tax documents, improves services and convenience for taxpayers

The IRS is simplifying the tax filing process for taxpayers by integrating information return documents into their IRS Individual Online Account. This will centralize tax records in a single digital location. The first information returns to be added are Form W-2, Wage and Tax Statement and Form 1095-A, Health Insurance Marketplace Statement. These forms will be accessible for tax years 2023 and 2024 under the Records and Status tab in the taxpayer’s Online Account.

Register now for this free account: IRS.gov and click Sign in to your account on the right.

Send a message to learn more

02/20/2025

Rinse and repeat:

According to a notice from the Financial Crimes Enforcement Network (FinCEN), the agency enforcing the Corporate Transparency Act, the new deadline to file a beneficial ownership information report for the vast majority of small businesses is March 21

01/30/2025

Beginning Jan. 1, 2025, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

70 cents per mile driven for business use, up 3 cents from 2024.
21 cents per mile driven for medical purposes, the same as in 2024.
21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year.
14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.

While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

01/11/2025

It's baaaack:

From the IRS
The nation’s 2025 tax season will start on Monday, Jan. 27, and will feature expanded and enhanced tools to help taxpayers due to the agency’s historic modernization efforts. Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS Individual Online Account, more access to dozens of tax forms through cell phones and tablets, and expanded alerts for scams and schemes that threaten taxpayers. The IRS is once again working to provide taxpayers expanded help in-person through more hours at Taxpayer Assistance Centers nationwide. The IRS also will be focused on continuing high levels of service on its main taxpayer phone lines, with a goal of up to 85% level of service. “These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do,” said IRS Commissioner Danny Werfel. “More can be done with continued investment in the nation’s tax system.”

The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the Tuesday, April 15 federal deadline. More than half of all tax returns are expected to be filed this year with the help of a tax professional, and the IRS urges people to use a trusted tax pro to avoid potential scams and schemes.

12/30/2024

Keeping up with these changes is a full time job! The BOI reporting is now voluntary pending the out come of the lawsuit.

On December 26, a different panel of the 5th Circuit vacated the December 23 order. In other words, the preliminary injunction is back in place and BOI reports are not currently required.

FinCEN confirms this on its website: "Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not currently required to file beneficial ownership information with FinCEN."

It's highly possible this will change again. The December 26 5th Circuit order states the preliminary injunction is held in place "in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments." In other words, this panel is looking at the case, and nothing is a done deal yet.

12/25/2024

***IMPORTANT***

The new filing deadline for Beneficial Ownership Information (BOI) reporting due to the stay of injunction being lifted is January 13, 2025.
This extension was announced by FinCEN on December 23, 2024, following a federal court of appeals decision that reinstated the reporting requirement.
Key Points:
* Applies to most reporting companies: This deadline applies to most companies required to submit BOI information.
* Extension for certain companies: Companies formed or registered between December 3, 2024, and December 23, 2024, have an additional 21 days from their original filing deadline.
* Companies formed after January 1, 2025: These companies have 30 days to file their initial BOI report after receiving notice of their creation or registration.