Lodestar Consulting LLC

29/03/2025

Over $1Billion 2021 refunds due taxpayers to be lost April 15, IRS estimates, not including unpaid Recovery Rebate Credits, etc.

http://bit.ly/43y59aa links to IRS.gov article "Taxpayers should act now to claim more than $1 billion in refunds for tax year 2021 with the April 15 deadline fast approaching."

Don't file = refund lost permanently.

Most states have a 4-year statute, which means any 2020 refund due is going bye-bye if no tax return filed.

IR-2025-31, March 11, 2025 ― The Internal Revenue Service announced today that over 1.1 million people across the nation have unclaimed refunds for tax year 2021 but face an April 15 deadline to submit their tax returns.

06/03/2025

BOI reporting is back on again, but now without penalty as announced by US Department of the Treasury on March 2.

March 21, 2025 is the new deadline for initial reports, basically. Read more here:

It seems this all I write about, but developments continue to be active. The US Department of the Treasury announced on March 2, 2025, it will not pursue penalties and fines for failure to comply with beneficial owner information reporting, specifically penalties and fines against U.S. citizens or

05/03/2025

BOI Update - still need to file but...

3-2-2025 Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies.

-won't enforce any penalties or fines
-won't enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners
-focus on foreign reporting companies

-“This is a victory for common sense,”

Like, right?

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, 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 penal...

26/02/2025

LLCs, corporations, partnerships... March 21 is the new revised filing deadline for Beneficial Owner Information reports with FinCEN. More info at fincen.gov/boi The deadline keeps shifting due to court challenges. If you haven't filed, or the information you filed has changed, there's time to do it now.

Two current bills seek to totally repeal the corporate Transparency Act- H.R.425 and S.100. While Senate Bill S.505 seeks to modify the initial reporting deadline for companies that existed prior to Jan 1 2024 and I *think* they are seeking a Jan 1, 2026 revised deadline. Trying to confirm that... congress.gov

18/02/2025

Montana: The Department of Revenue recently notified business owners with a business equipment reporting requirement, that it is time to report for Tax Year 2025. Individuals and businesses owning business equipment (as of January 1, 2025) with an aggregate market value of more than $1 million statewide must report the equipment owned by March 1, 2025, to avoid a 20 percent penalty.

For more information, visit MTRevenue.gov or contact us at (406) 444-6900 or [email protected].

27/01/2025

Update for clients: Filing season is open now but I generally wait until after Feb 10 to begin filing to ensure all tax documents are received. But it's a case by case basis too. Items such as brokerage documents can take longer to receive. It's better to wait a few days than have to amend a return filed hastily.

Tax organizers are forthcoming.

A new secure document sharing portal experience is on its way too. Invites are going out this week.

Happy Monday!

14/01/2025

A bit of perspective

14/01/2025

FinCEN BOIR going forward:
New entity: 30 days to file.
Changes: 30 days to file.

06/01/2025

S-Election Season! Your spouse might need to consent. Really?

1. Do you live in a community property state?
2. Is your spouse NOT an owner in the business with you?
3. You want to do an S-election?
Read this... get it right the first time. (pretty please)

When filing your Form 2553 aka "S-election form" in CP states, a non-shareholder spouse must consent to the election absent a separate property agreement or absent a fact the interest in the company AND income is separate property.

This quickly de-evolves into legal issues. So, you really should consider consulting your legal counsel.

Risk? Revocation of the S-election. That could be very expensive.

What if a prior election wasn't done right? Revenue Procedure 2004-35 provides automatic relief for "late shareholder consents."

How would this come up anyway??? Good question. Glad I asked myself. If IRS discovers it, or possibly in divorce proceedings with an angry soon-to-be ex. I'm sure there's other circumsatnces as well.

"Honey, can I have a popsicle. And btw, could you sing here? I need your permission." OMG the oddities in tax, but it's more in the realm of property law than tax law.

Fun times in the tax world!!!!!!

Cheers
J

25/12/2024

FinCEN CTA Beneficial Owner Information Reporting is back in play.
The time-out is over.

New deadlines in general...
-Jan. 13, 2025 is now the general due date.
-New entities formed in 2025 have 30 days from formation to file.

More here:
https://www.fincen.gov/boi

United States Court of Appeals, Fifth Circuit decision:
https://www.nfib.com/wp-content/uploads/2024/12/NFIB-CTA-Lawsuit-5th-Circuit-Appeals-Order.pdf

Cheers