Tax Updates
Keeping you current on what are the new updates for taxes. If you have any other questions or concerns you can email us here or call at 763-245-6760.
Im sure some of you have been wondering about receiving a 1099K form from some agencies like Venmo, Cash App, Square which were going to be going into effect in 2023. Most people wont be receiving those forms for 2023. There have been some delays in implementing for a wider base. Below is an excerpt from the article that helps to explain.
"IRS announces delay in Form 1099-K reporting threshold for third party platform payments
Following feedback from taxpayers, tax professionals and payment processors and to reduce taxpayer confusion, the Internal Revenue Service this week released Notice 2023-74 announcing a delay of the new $600 Form 1099-K reporting threshold for third party settlement organizations for calendar year 2023. As the IRS continues to work to implement the new law, the agency will treat 2023 as an additional transition year. This will reduce the potential confusion caused by the distribution of an estimated 44 million Forms 1099-K sent to many taxpayers who wouldn't expect one and may not have a tax obligation. As a result, reporting will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions in 2023."
UPDATE 12-24-2024
Governor Walz Announces First-in-the-Nation Advance
Payment Option for Child Tax Credit
Governor Walz announced that taxpayers who qualify for Minnesota’s nation-leading Child Tax
Credit will have the option to receive advance payments of the credit during the upcoming tax
filing season. Minnesota is the first state in the nation to offer this option for Child Tax Credit
recipients.
More than 223,000 tax returns claimed the new Child Tax Credit for tax year 2023, for an
average total credit of $1,242. This tax credit put over $562 million into the budgets of
Minnesota families this year.
"The goal of this nation-leading tax credit is to lower child poverty and provide tax relief for
working class families in Minnesota. With the advance payment option, we’re making it
easier for families to manage their annual household budget," said Governor Walz. "This new
option will increase financial freedom and ensure families have the support they need all year
long."
The rebates that alot of Minnesota residents got this last year will be taxable on the federal level. We will need to know how much you received in 2023. They are going to be sending out forms from the State by January 31st 2024 for your records. It is not being taxed by the state.
"Child tax credit could change — but ‘don't wait on Congress' to file your taxes, IRS commissioner says"
BOI UPDATES 12-24-2024
FinCEN extends BOI reporting deadlines following stay of nationwide injunction
On December 23, 2024 FinCEN announced that in light of a federal Court of Appeals decision issued that day granting a stay of the preliminary injunction enjoining the Corporate Transparency Act (CTA) entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order, that reporting companies are once again required to file beneficial ownership information reports (BOIR) with FinCEN.
FinCEN also announced that because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, they are extending the reporting deadlines as follows:
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Reporting companies that were created or registered before to January 1, 2024 have until January 13, 2025 to file their initial BOIR.
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Reporting companies created or registered on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial BOIR.
