Alabama Overtime Income Tax Exemption Set to Expire June 30, 2025
Under current Alabama law, overtime compensation paid to nonexempt employees in accordance with the Fair Labor Standards Act (FLSA) is exempt from state income tax. This exemption is scheduled to expire on June 30, 2025. Next Steps Effective July 1, 2025, employers will be required to resume withholding Alabama state income tax on overtime wages…
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Trump 2025 Tax Bill – Components Unveiled
On May 22, the House Republicans passed the One Big Beautiful Bill Act (H.R. 1, also known as the “Bill”). While the Senate committees give their input and changes, time allows us to analyze which expiring Tax Cuts and Jobs Act (TCJA) provisions are extended in the House’s bill and which elements from President Trump’s…
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C Corporation Basics: Key Advantages, Drawbacks, and Tax Opportunities
A C corporation is a legal structure for a business that is taxed separately from its owners. This structure offers significant legal protections and is favored by companies planning to reinvest profits or eventually go public. Unlike S corporations or LLCs, a C corp pays corporate income tax on its profits. If dividends are paid,…
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Business Tax Deductions for Automobiles in 2025
Choosing Between Standard Mileage and Actual Cost Methods When deducting vehicle expenses for business use, taxpayers have two primary options: Standard mileage rate (cents-per-mile method) or the actual expense method. Under the cents-per-mile method, businesses multiply the IRS standard rate—70 cents per mile for 2025—by the number of business miles driven. This method is simpler…
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Understanding Multi-Member LLCs: A Simple Guide
A multi-member LLC (Limited Liability Company) is a popular legal business structure that’s formed by two or more owners, known as members. It combines the limited liability protection of a corporation with the pass-through taxation of a partnership, making it an attractive choice for small businesses, startups, and investment groups. It’s the preferred entity for…
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S Corporation Overview and Compliance
Advantages of an S Corporation An S corporation offers several key advantages for small and closely held businesses. One of the most notable is pass-through taxation, which allows income, deductions, and credits to flow through to the shareholders’ personal tax returns, avoiding the double taxation faced by traditional C corporations. Other key benefits include: –…
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IRS Employees Not Filing Returns and Paying Taxes
The integrity of the Internal Revenue Service (IRS) is fundamental to maintaining public trust in the U.S. tax system. However, recent findings have raised concerns about tax compliance among IRS employees and contractors. As of 2023, reports indicated that over 5,800 IRS workers and contractors were delinquent in their tax obligations, collectively owing nearly $46…
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Trump 2025 Tax Bill – Timing and Likely Components
Timing As of March 30, 2025, the Trump administration, alongside congressional Republicans, is actively pursuing significant tax legislation aimed at extending and expanding upon the 2017 Tax Cuts and Jobs Act (TCJA). The exact timing and provisions are influenced by economic considerations and dynamics within the Republican Party. The goal is to finalize before the…
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Key IRS Adjustments for 2025: What Taxpayers Need to Know
In 2025, the Internal Revenue Service (IRS) introduced several inflation-adjusted changes to various tax provisions, aiming to align them with current economic conditions. Standard Mileage Rate for Business Use: The rate has increased to 70 cents per mile, up from 67 cents in 2024, reflecting higher vehicle operation costs. Standard Deductions: Single Filers and Married…
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FINCEN Removes Reporting Requirement for U.S. Companies and U.S. Persons
Domestic Companies No Longer Required to Report to FinCEN Effective immediately, all entities formed in the United States (such as corporations, LLCs, and other common U.S. business structures), along with the beneficial owners of such entities, are exempt from Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA). This exemption also applies to…
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