Here below are some recent tax changes & updates to be aware of as tax season rapidly approaches:
- Last tax season saw the highest number of bank products in 10 years, late car payments are at an all time high, and Americans’ credit card debt balances now exceed $1 trillion. If you serve lower or middle income clients, be ready for a serious early season rush from Big Tax Refund Seekers.
- Many tax pros are concerned about the potential for privacy violations of your client’s sensitive data with this new “Corporate Transparency Act” form that needs to be filed for every business entity in the U.S., including Single Member LLC’s. If you’re concerned about your clients’ privacy, be aware that FinCEN has announced an option to obtain a “FinCEN Identification Number” and provide that number to the “reporting entity,” rather than giving out all the taxpayer’s sensitive data (residence address, etc.) to the reporting entity. More info about FinCEN Identifier here if you need it.
- The IRS decided to automatically eliminate late payment penalties for tax years 2020 and 2021. Estimated $1 billion in penalty reduction. Average savings of $206 per taxpayer that’s affected.
- The IRS has started sending out “disallowance letters” for Employee Retention Credit claims that IRS suspects are incorrect or fraudulent. Around 20,000 letters have gone out so far.
- President Biden said he wants to create a new federal tax credit for home buyers.
If you have any questions (or comments!) about any of these tax changes, or any other tax changes, quick reminder for you that we are hosting our quarterly Q & A webinar for all Pronto Tax School Members TODAY December 28, at 3pm EST / 12pm PST.
Here’s how to get access to the Live Q & A Webinar happening tomorrow:
- Pronto Tax School Existing Members — click here to learn what you need to do to register to attend this webinar (you’ll need to log into your Pronto Tax School account before you can access that page).
- Not Yet Pronto Tax School Members — click here to see what all is included in a Membership and grab the Membership Plan that’s right for you. Memberships start at under $100 per year. Then, once you’re a Member, go to this link and sign up for the live Q & A on December 28 (you’ll need to log into your Pronto Tax School account before you can access that page).