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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The Future of Social Security Taxes: Relief for Retirees or a Risk to the Program?
President Donald Trump has proposed eliminating federal income taxes on Social Security benefits, aiming to provide financial relief to retirees. Currently, up to 85% of these benefits can be taxed, depending on income levels. While this initiative could increase retirees’ disposable income, critics warn it may accelerate the depletion of the Social Security Trust Fund,…
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BOI Reports Now Due by March 21, 2025
A recent court ruling means businesses must file their Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA). New Deadlines: Most businesses must file by March 21, 2025, if you have not already filed. New businesses (formed on or after Feb. 18, 2025) must file within 30 days of creation. Businesses with disaster…
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Itemized Deductions A-Z Series – Full Series of Posts
This series is intended to cover the most common deductions. Please keep in mind that there are always exceptions; what’s more, your situation or facts may be different from someone else. We recommend that you consult with your tax advisor before taking any action. Part 1: The Basics Part 2: Deductions and Medical Expenses Part…
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Itemized Deductions Series – Part 7: Job Expenses and Miscellaneous Deductions
The 2017 Tax Cuts and Jobs Act suspended miscellaneous itemized deductions for federal tax purposes; however, they are still available as itemized Alabama deductions. To be deductible in Alabama, the total must exceed 2% of your adjusted gross income. So, if your total 2024 Alabama income is $100,000, only those expenses exceeding the $2,000 floor…
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Itemized Deductions Series – Part 6: Casualty & Theft Losses
A casualty or theft loss is allowed only if the property is located within an area officially declared a federal disaster area. All emergency and major disaster declarations are made solely at the discretion of the President of the United States as provided by the Robert T. Stafford Disaster Relief and Recovery Act. In order…
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