JUNE 2024 TAX NEWSLETTER

Tax Season 2024.

Tax Day June 17 - Expats

June 17 - Individuals Residing Abroad Tax Day is June 17 2024. If you have not filed your tax returns to the U.S., you should file by this date. However, if you are not ready to file, you can file an extension Form 2868, application for filing extension. The extension is good until October 15, 2024. If you need assistance, please contact us. We will file for free provided to complete the filing with us. 

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EIP: Stimulus Payments - Still available ... but ending partially this year!

U.S. Persons can still receive the Economic Impact Payments from the IRS by filing their tax returns for years 2020 and/or 2021 even if you have zero income. Reminder there's no more payments for 2022 so do not expect a refund this year for the EIP.  June 17, 2024,  will be the last year to file 2020 to receive the payments. 

Need to get Compliant with the IRS?

If you have not filed your tax returns or FBARs for several years, the IRS allows you to file under an amnesty program to avoid the "failure-to-file" penalties. However, even if you have not filed for ten years, you only have to file for the last three years and the current year...so it's four years filing and you are caught up and compliant. Also, if you qualify, you can still receive the EIP's of a total of $3,200. This credit is also called the Recovery Rebate Credit. Contact us for more information or questions. 

US Small Businesses Reporting Changes

New Federal Reporting Requirements - Once again

Earlier this year, we reported changes in reporting your U.S. business entity. We wanted to publish this information again to warn you of the penalties involved.  It is very important not to ignore this new law as the penalties for not filing your Beneficial Ownership Information (BOI) can be substantial.  A published FAQ listing by the U.S. Department of Treasury (DOT) can be viewed here. We should also warn you about any requests to complete the forms on your behalf...these can be scams. You can also receive scam information about filing a BOI on your foreign entity. Be leery of anyone requesting to file anything on your behalf. The DOT requests that you complete your own BOI. Most companies will not file on your behalf due to liabilities concern. 

Beginning January 1, 2024, small business owners must comply with a new different type of legal compliance and document filing requirements. Any LLC, S or C Corporations who are required to file with the Secretary of State’s office of any state usually are faced with filing annual reports for a corporation, or filing business tax returns, However, now the federal government has placed a new reporting requirement.  The Beneficial Ownership Information (BOI) Reporting is a new federal reporting obligation for small businesses that took effect on January 1, 2024. It is managed by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN).

BOI Reporting was created by the U.S. government to stop criminals who use shell companies to cover up their financial crimes. The report only needs to be a one-time filing unless there are changes with the organization.

What is BOI Reporting?

Beneficial Ownership Information (BOI) Reporting is a new requirement that took effect on January 1, 2024, as part of an act of Congress called the Corporate Transparency Act of 2021. This law is intended to make it harder for criminals to use shell companies or obscure business ownership formations to hide their illicit profits.

Compared to many other countries, the U.S. makes it easy to start a business entity. In most states, with just some simple filing and a small fee, an entity can be set up as a small business that has its own separate identity for banking, taxes, and liability purposes. There are many ways to set up a business structure, such as an LLC (limited liability company), corporation, or other business entity.

The BOI Reporting requirement is intended to prevent criminals from misusing the U.S. financial system by setting up fake companies to hide their financial activities.

Information Requested for BOI:

The BOI Reporting filing system will information about the company and about the business's "beneficial owner,":

• Tax ID number (Employer ID Number) 
• Legal name of the business
• Where the business was formed, registered, or incorporated.
• The business's address.
• Filer’s personal name and residential address
• A photo of the “beneficial owner” driver's license or passport

Deadline for BOI Reporting

BOI Reporting deadlines depend on when the business was formed:

• If the business was created, formed, or incorporated before January 1, 2024, you have some time: BOI Report is not due until January 1, 2025.
• But if starting a new business during 2024 (on or after January 1, 2024), the BOI Report is due within 90 calendar days of the business entity's formation becoming "official."

Don't miss filing BOI Report. The penalties are severe! As FinCEN indicates, business owners that willfully fail to file a complete or updated BOI Report, or provide false or fraudulent BOI reports, can face civil penalties of up to $500 per day that the violation continues, or up to two years of imprisonment and/or a fine of up to $10,000.

There is no additional tax involved since this is a reporting issue with the federal government however do not prolong the filing and later face the penalties. Contact Mir Taxes for any questions or for assistance in filing the BOI. The report is filed online on the FinCEN website. Learn more at the FinCEN website.

Global News - Tax Reading List for June

United States IRS 2024 Dirty Dozen Highlights Major Tax Scams, Including Abusive Tax Schemes

United States Court Of Appeals Reverses Tax Court's Farhy Decision, But Opportunities Remain To Challenge Penalties For Failures To Report Foreign Gifts

United States Hobby Loss And Ranches - An Overview Of Section 183

United States Pressing Cross-Border Tax Issues Affecting U.S. Investments - Part 1

United States Exclusive: How Estate Tax Expiration Will Impact Wealth Management 

United States Is Your Lawsuit Tax Deductible? | How To Know When It Is, And Isn't, Deductible

United States Understanding Joint Filing And Innocent Spouse Relief - A Guide For Married Taxpayers

United States IRS Authority To Assess Certain Foreign Information Return Penalties Restored By D.C. Circuit

United States Proposed Regulations May Mitigate Certain US Tax Reporting Obligations For Some US Taxpayers

United States California Property Tax And Proposition 19

Belgium Transition Scheme For Wht Exemption For Work Shifts Gives More Legal Certainty

European Union Council Of The EU Agrees On Draft Proposal For The FASTER Directive