Tax News Update | August 2024

• 2024 BTB Brochure Mailing
• New E-File Options for Amended Employment Tax Returns
• New Proposed and Final Regulations on RMDs
• IRS Warns About Non-Existent SE Tax Credit
• Tax Troubles
• August  Applicable Federal Rates
• 2024 Back to Basics Update
• 2024 Seminar / Webinar Dates and Locations 
• 2024 Desk Reference Guide
• State Tax Updates
• Accounting Practice for Sale
• Kenosha & Racine Area – Client Referrals
• Area Stakeholder Liaison Teams
• Speaking Engagements
• The Tax Book – Promo Code 544
• CFS Tax Tools – Coupon Code BTB57143
• $50 Referral Bonus 

“I could end the deficit in 5 minutes… You just pass a law that says anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for reelection.”  

~  Warren Buffet

Instructors 

James Hockenberry, EA – Jim is the President of Back to Basics Income Tax Seminars and has over 31 years of experience in income tax and financial planning. He is an Enrolled Agent and holds a Bachelor of Business Administration (BBA) degree from the University of Wisconsin-Eau Claire. He has worked as a tax researcher / technical writer and has served as an instructor for several tax and financial organizations. 

Steve O’Rourke, EA – Steve is an Enrolled Agent with a successful tax practice in Oshkosh, Wisconsin. His firm, which was established in 1989, prepares over 2,500 individual and business tax returns. Steve has a Bachelor of Business Administration (BBA) degree from the University of Wisconsin – Oshkosh. He has over 40 years of experience as a tax professional and is a nationally known speaker, having taught tax seminars for the National Association of Enrolled Agents, the National Association of Tax Professionals, and several other professional organizations nationwide.

2024 BTB Brochure Mailing

The 2024 BTB brochure was mailed out in mid-April.  If you did not receive a copy of the brochure – you can always go to the BTB website or click here for a copy. As for the brochure mailing, it seems that the PTIN list may have had an error as some tax professionals received more than one brochure and/or a brochure with an incorrect name. We apologize for any inconvenience. If you received an extra brochure in the mail – please share it with a colleague so they may register for our continuing education events.

New E-File Options for Amended Employment Tax Returns

The IRS has announced the availability of electronic filing for several amended employment tax returns using Modernized e-File (MeF). Eligible forms include Form 940, Employer’s Annual Federal Unemployment Tax Return, Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, Form 943-X, Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund, and Form 945-X, Adjusted Annual Return of Withheld Income Tax or Claim for Refund. This new e-filing option streamlines the amended return process for employers and tax professionals. However, at this time, Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund and Form CT-1 X, Adjusted Employer’s Annual Railroad Retirement Tax Return or Claim for Refund are not yet available for e-filing. This development fulfills the IRS’s promise to expand e-filing options for payroll returns in 2024, as outlined in the 2023 940 instructions. 

New Proposed and Final Regulations on RMDs

The IRS has issued final regulations and proposed regulations on required minimum distributions (RMDs). The final regulations address RMDs from qualified plans; annuity contracts under §403(b), custodial accounts, and retirement income accounts; individual retirement accounts and annuities; and certain eligible deferred compensation plans. The companion proposed regulations on RMDs from various retirement plans address provisions not covered in the final regulations, including age determinations, designated Roth account distributions, excise tax waivers under §4974, and spousal elections. Both the final and proposed regulations are applicable to tax years beginning on or after Jan. 1, 2025.

IRS Warns About Non-Existent SE Tax Credit

The IRS issued a consumer alert following bad advice circulating on social media about a non-existent “Self Employment Tax Credit” that’s causing some taxpayers to file false claims. The underlying credit being referred to in social media is not called the “Self Employment Tax Credit” but is actually a much more limited and technical credit called Credits for Sick Leave and Family Leave. Many taxpayers do not qualify for this credit, and the IRS is closely reviewing any claims coming in under this provision. People who were self-employed can claim Credits for Sick and Family Leave only for COVID-19 related circumstances in 2020 and 2021 and this credit is not available for 2023 tax returns. The IRS has a detailed set of  FAQs describing the requirements for meeting the Sick and Family Leave credits.

Tax Troubles

Edward Kim was sentenced to 292 months in federal prison for fraudulently obtaining nearly $5.5 million in COVID-related jobless benefits by using the identities of California state prison inmates and other third parties, trafficking fentanyl and methamphetamine, and seeking to fraudulently obtain more than $356,400 in tax refunds. From May 2020 to March 2021, Kim and his co-conspirators submitted approximately 459 fraudulent unemployment insurance claims tied to the COVID-19 pandemic. He and his conspirators used the names, social security numbers, dates of birth and other personal identifiable information (PII) of California state prison inmates and others to fraudulently obtain unemployment insurance funds. Beginning in March 2020, he also conspired with others to use stolen identities to file income tax returns to fraudulently claim Economic Impact Payments (EIPs) due to the COVID-19 pandemic. Together with his co-conspirators, Kim caused at least 297 tax returns to be filed with the IRS which sought more than $356,400 in fraudulent EIPs.

August Applicable Federal Rates

Rev Rul 2024-15

2024 Back to Basics Update

Website – New and improved website for better access to the newsletter and an improved registration system. 

Registration – In an effort to improve registration and CPE / CE reporting we need to have each participant register with his/ her own separate email address. The system is now designed to allow only one distinct email address per person. Your registration is your ticket to the seminar or webinar.

Note: Because of the strict continuing education requirements – each person will have to register separately even if you are part of an office group.

E-book Option – As always, all participants will receive a printed textbook for each session. However, if you prefer to go paperless, you can save $10 per session by selecting e-book only.

Webinars – Over 45% of our registrations are from Webinars – which tells us that more people prefer the convenience of on-line education. We have added additional dates and times for our on-line webinars this year – including an option that is more convenient for those in the Mountain time zone.

Seminar Locations – Due to the success of the webinars, the average classroom size for the in-person seminars has decreased. Unfortunately, this makes it necessary to consolidate a few of our seminar locations. For those who attended our prior seminars in Superior, Janesville, and Racine you will have to select one of our other remaining locations – or join us on-line.

Referral Program – We understand that referrals have always been the best way to grow a business. As a thank you, we will mail you a $50 referral fee for each new attendee who registers for a Back-to-Basics seminar.

2024 Seminar / Webinar Dates and Locations 

Registration is now available.

Here’s the data converted into a table format:

Note: All webinars begin at 8:25 am and end at 4:35 pm in the time zone indicated above.

2024 Desk Reference Guide

Now that the final numbers for 2024 have been released by the IRS, we have updated the Desk Reference Guide for the new year. Click here for your copy of the 2024 Desk Reference Guide.  

State Tax Updates

In mid-January we sent a link for the state tax updates. As a reminder, all Part II participants have the ability to view the Wisconsin and Arizona state updates for FREE. The state tax update programs will not qualify for continuing education credits. The link for the state updates included a recorded video, the written text, and PowerPoint slides.

If you did not attend the Part II session, you may purchase the state programs for $30 on our website.  

Accounting Practice for Sale

Northeast/central Wisconsin. $380,000 gross (sale price negotiable). Drake tax software, Quickbooks accounting software.  Networked computers, all office equipment, 3,300 square foot office on main highway, available for lease or purchase.   Seller willing to provide multiple years of transition support.  

Reply to bkcpa@frontier.com for more details.

Kenosha & Racine Area – Client Referrals

I have been attending the BTB seminars for many years.  I plan to retire from tax work after next tax season – April 16, 2025.  I have a small tax practice in Kenosha with about 75 clients.  I work alone, out of my home, so I have been able to keep my fees reasonable.  When I visit with my clients after the first of the year, I would like to help them find a new tax preparer for their 2025 taxes by giving them a list of available tax preparers.  If you are in the Kenosha or Racine area, and you are taking new clients, please contact me via email: peggyjgallo@gmail.com .

Area Stakeholder Liaison Teams

Speaking Engagements 

If your professional group is looking for outside speakers for an upcoming event – we can help. For additional information, please email jhockenberry@dbcllc.com.

The Tax Book – Promo Code: 544

Use Promo Code 544 for additional discounts and take advantage of The Tax Book’s award-winning tax research solutions. 

Order at: www.thetaxbook.com/order
Promo Code: 544

CFS Tax Tools – Coupon Code: BTB57143

CFS Tax Software, Inc.

Tax Tools is a collection of over 300 worksheets, calculators, flowcharts, and forms that tackle a variety of tough tax topics (many of which aren’t included in your 1040 software), including:

• Individual Tax Planner 
• ACA modules 
• Penalty and Interest Calculator 
• Social Security Optimization 
• Updated for latest tax law changes

You can order online at www.taxtools.com, or call 1-800-343-1157. Either way, be sure to use Coupon Code BTB57143 for additional savings.

$50 Referral Bonus

Refer a new attendee to a Back to Basics Income Tax Full Day Seminar and receive a $50 referral fee. Upon receipt of the new attendee registration(s), BTB Income Tax Seminars will mail you a check of $50 for each new attendee. Click Here to get a copy of the referral coupon.

(NOTE: Not valid with any other special offers or discounts)