News

If you found yourself one of the 140,000 Americans that used the Biden-Era free tax filing service “Direct File” last year – change could be coming by way of Elon Musk and DOGE (Department of Government Efficiency.) 

It’s The Best Time of The Year – Tax Season! 4 Things to Avoid as You Prepare Your Returns. 

New year – new tax laws?  With a new Administration comes new proposals for tax law changes.  Here are the ones we’re watching:

• With many provisions of the 2017 Tax Cuts and Jobs Act set to expire in 2025, many of those provisions may be extended.
• President Trump has proposed a cut on taxes on overtime pay and tips.
• The estate tax may be eliminated. 
• One proposal is to allow for auto loan interest tax deductible. 
• There has been a 10% import tariff proposed - a universal tax on US imports that would be taxed to the consumers.  
• The SALT tax deduction may be restored. This tax deduction previously allowed all state and local taxes paid to be deducted from the Taxpayer’s IRS bill. In 2017, the deduction was capped at $10,000. 
• Federal taxes on Social Security may be eliminated. Currently, Social Security is subject to federal income tax when there is “combined income” (1/2 of Social Security + other income) of more than $25,000 individual/$32,000 MFJ. The current proposal would eliminate taxes on Social Security entirely. 
• One Representative has introduced a bill that would do away with the current tax code and be replaced with a national consumption tax – the Fair Tax.
• With these new tax plan proposals, some tax breaks may be taken away, such as the mortgage interest deduction, Head of Household filing status, the Child and Dependent Care Credit, American Opportunity Credit, student loan interest deduction, and Lifetime Learning Credit. 

In 2024, we saved our Clients an estimated:

$1,222,025.54 through Audit Representation Efforts

$4,547,020.40 through Collection Statute Expiration Date (CSED) Monitoring Efforts

$125,163.98 through Penalty Abatement Efforts

$5,715,213.70 through Offer in Compromise Efforts

$11,609,423.62 in estimated 2024 Tax Savings!

In support of Louisiana Governor Jeff Landry's proposed tax package, the Louisiana Legislature has passed a 3% flat tax for individuals, reduced the corporate income tax rate, eliminated the corporate franchise tax, temporarily increases the State sales tax rate to 5%. Louisiana will now have the highest combined local and state sales tax in the nation.

This sales tax increase is a step toward Governor Landry's goal of eliminating State income taxes all together, attempting to cover the cost of lost revenue for the State caused by income tax rate reductions with the increased sales tax rate.

A federal court in Texas has issued an order that now prohibits the federal government from enforcing the Corporate Transparency Act nationwide.  In the Texas Top Cop Shop case brought before the Court this week, the Court held that the Act, which required many small businesses to file a Beneficial Ownership Information (BOI) report with the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) before January 1, 2025, was likely unconstitutional, and that enforcing the Act would harm reporting companies if forced to comply.  As a result, the Court enjoined the enforcement of the Corporate Transparency Act in its entirety nationwide.  

If it seems we are living in meme-reality, it just might be that we are. The newly implemented Department of Government Efficiency, or “DOGE” for short has their sights set on cutting unnecessary government spending and increasing accountability in all government agencies as well. This includes the IRS, and its reportedly many IRS employees who were delinquent on their own tax responsibilities and obligations last year. Delinquent to the tune of almost $50 million dollars, that is. 

Waiting on Employee Retention Credit claims? The IRS announces it is continuing to process claims, with over 400,000 worth about $10 billion underway. 

Hey Louisiana – have you heard?  After stating that the State will need tax reform in order to avoid a $1 billion deficit over the next 4 years, Governor Jeff Landry has just announced a series of tax reform proposals at the State Capitol on Tuesday, October 1, 2024.

Our September 2024 Resolution Results are IN, and we saved our Clients over half a million dollars this month!