Tax News Updates | October 2024

• 2024 BTB Brochure Mailing
• Seminars Begin in This Month
• IRS to Contact Tax Pros for Voluntary Survey
• 2024-2025 Special Per Diem Rates
• FAQs on Premium Tax Credit Updated
• Should Tax Pros Handle BOI Reporting? 
• Tax Troubles
• October  Applicable Federal Rates
• 2024 Back to Basics Update
• 2024 Seminar / Webinar Dates and Locations 
• 2024 Desk Reference Guide
• State Tax Updates
• Viroqua Tax Practice For Sale
• 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 

“The politicians say ‘we’ can’t afford a tax cut. Maybe we can’t afford the politicians.”

~  Steve Forbes

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.

Seminars are Underway

The 2024 BTB seminars started in September, webinars begin October 25. If you have not registered – now is the time to do it. For those with more than one person attending an event from the same office, don’t forget to take advantage of the group discounts.

We have launched a new website where you can now create and manage your own account.

1. On-line registration. Once your account is created you can then login and register for each event. Click here or the button below to get started.

2. Group registrations. To take advantage of the group discounts, we can help you with the process. Just use the link and fill out the group registration form, hit submit and we will complete the group registration for you.

If you have already registered, we will see you at the event. Just remember to bring your seminar confirmation letter with you to the seminar. For our full-day seminars and webinars, check-in begins at 8:00 am. Seminars start at 8:25 am and end at 4:35 pm.

IRS to Contact Tax Pros for Voluntary Survey

The IRS will contact random tax professionals to take part in a voluntary survey that will “help the IRS improve services to the tax professional community and taxpayers.” This survey will be conducted through December 6, 2024 by the independent research firm ICF. 

Selected tax professionals will receive a survey invitation via the U.S. Postal Service mail. Tax professionals can complete the survey online or by mail in about 20 minutes. It covers topics like e-filing, due diligence requirements, data security, and electronic document submission. All responses are anonymous and confidential.

The survey won’t ask for personal info about the tax pros or their clients.

Tax professionals who don’t respond to the survey invitation will get a follow up phone call. The follow-up calls will be made Monday through Friday between 8:30 a.m. and 6:30 p.m. local time from area code 816 (Kansas City). 

The IRS emphasized that this survey and the phone call are not a scam, so tax professionals who are contacted should not hang up. For more information about the survey, you can email TaxProfessional@icfsurvey.com or call (888) 504-6387.

2024-2025 Special Per Diem Rates

The IRS has issued new “high-low” simplified per diem rates that should be used with respect to per diem allowances for lodging, meal and incidental expenses (or for meal and incidental expenses only) that are paid to an employee on or after October 1, 2024, for travel away from home on or after October 1, 2024.

Notice 2024-68 provides the following daily rates and changes to the list of high-cost localities:

• The special meals and incidental expenses (M&IE) rates for transportation industry taxpayers are $80 for any locality of travel in the continental United States (CONUS) and $86 for any locality of travel outside the continental United States (OCONUS).

• The rate for any CONUS or OCONUS locality of travel for the incidental expenses only deduction is $5 per day.

• Under the high-low substantiation method, the per diem rates are $319 for travel to any high-cost locality and $225 for travel to any other locality within CONUS. The amount of the travel per diem that is treated as paid-for meals is $86 for travel to any high-cost locality and $74 for travel to any other locality within CONUS.

FAQs on Premium Tax Credit Updated

The IRS has updated its frequently asked questions in Fact Sheet 2024-30 for the Premium Tax Credit. 

These FAQs supersede earlier FAQs that were posted in FS 2024-04 on Feb. 9, 2024.

This recent revision is under the Affordability of Employer Coverage for Employees and for Family Members of Employees section, specifically Q11, to provide the required contribution percentage for determining whether employer coverage is considered affordable for plan years beginning in 2025. The revision is based on Revenue Procedure 2024-35.

Should Tax Pros Handle BOI Reporting?  

As the Corporate Transparency Act (CTA) mandates businesses to report their Beneficial Ownership Information (BOI), tax professionals are increasingly faced with the question of whether to take on this responsibility for their clients. While it may seem like a natural extension of their services, several compelling reasons suggest that tax professionals might prefer to steer clear of BOI reporting.

1. E&O Insurance Concerns

Errors and Omissions (E&O) insurance is crucial for tax professionals, covering them in cases of negligence or mistakes. However, BOI reporting introduces a unique set of complexities and risks. The information required can be sensitive, and any inaccuracies can lead to significant legal consequences. Misreporting beneficial ownership details may expose tax professionals to increased liability, potentially resulting in higher E&O premiums or challenges in coverage. This heightened risk can deter professionals from offering BOI reporting as part of their services.

2. Short Reporting Window for Changes

Once a BOI report is filed, any changes to the ownership information must be reported within a mere 30-day window. This tight timeframe presents a logistical challenge. Tax professionals already manage numerous deadlines and client demands; adding the pressure of rapid reporting could lead to errors. Missing this deadline could result in penalties for both the business and the tax professional, further complicating an already intricate relationship.

3. Complexity of Compliance

The requirements for BOI reporting can be intricate, particularly for businesses with multiple owners or complex ownership structures. Understanding who qualifies as a beneficial owner—especially in cases involving trusts or partnerships – can be challenging. Tax professionals may find themselves spending considerable time navigating these complexities, which could detract from their core services.

While the responsibility of filing BOI reports might seem like an added service for tax professionals, the associated risks and complexities can outweigh the benefits. Given concerns around E&O insurance, the short reporting window for changes, and the intricacies of compliance, many tax professionals may prefer to recommend that business owners seek specialized assistance for this requirement. 

Tax Professional BOI Letter to Business Owners 

By notifying clients about their BOI obligations, tax professionals encourage business owners to take ownership of their compliance responsibilities. Many tax professionals have asked for a sample letter to inform business clients of the BOI reporting requirement – while at the same time making it clear that the accounting firm will not be filing the reports for their clients. You asked – we listened. (click here for a copy of the letter)

Tax Troubles

This case would fall under the “what was she thinking” category. Andrea Fabian Orellana loved to shop for designer clothing. When she realized her available closet space wasn’t large enough to accommodate her growing hoard, she decided to sell some items on eBay. In 2004 and 2005, Andrea collected over $40,000 in sales from her unwanted clothing. She did not report the extra income on her tax returns. 

After being tipped off, the IRS decided to investigate and found Andrea liable for $12,428 in back taxes. She didn’t think the sale of personal items was taxable. Needless to say, the IRS didn’t buy her argument and assessed a $2,486 negligence penalty citing she should have known better since she was currently employed as an IRS revenue officer. 

October Applicable Federal Rates

Rev Rul 2024-21

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.

Note: New locations are indicated by an asterisk ().*

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.  

Viroqua Tax Practice For Sale

Tax and accounting practice for sale in Viroqua, Wisconsin. Loyal clients, good reputation, high-growth community in the heart of the scenic Driftless area of Southwest Wisconsin. Owner retiring after 30 years. Gross revenue $330K. 68% tax, 32% accounting. Average 1040 fee is $621. Exceptionally clean files and well-organized office. Two employees are eager to stay under new leadership. Owner willing to provide transition services. Excellent office location is available to be leased from the owner, if desired. 

For additional information, please contact celeste@gibsoncpalaw.com.

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 jim.s.hockenberry@gmail.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)

Back to Basics Income Tax Seminars^® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. Sponsor ID # 108520