Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.
[Issued March 24, 2023]
In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.
[Issued September 18, 2023]
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
Updated: March 7, 2024
In Friday’s decision, District Court Judge Liles C. Burke ruled that the CTA is an unconstitutional exercise of Congress’ enumerated powers and granted the plaintiff’s motion for summary judgment, with a final judgment expected to follow. The scope of the Court’s decision is, as of this writing, limited only to the plaintiffs that case. For the time being, the Court’s decision leaves the CTA and BOI landscape in limbo as there is almost certainly going to be further developments in this case. In a recent press release, FinCEN clarified its position that the CTA remains in effect for all other reporting companies. Stay tuned for further developments as they arise.
Updated December 10, 2024
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.
Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.
While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.
If you hire contractors, freelancers, or vendors and pay them more than $600 in business-related payments, then you’ll need to prepare and issue a Form 1099.
The form is due to recipients by January 31 and is to be filed with the IRS by February 28.
Correct Form W-9s are the key to correct 1099s. To avoid possible matching notices with the IRS, it is important to ensure that the official name on the W-9 that corresponds with the Taxpayer Identification Number (TIN) matches exactly what is on file with the IRS.
You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The credit is available to individuals and their businesses.
To qualify, you must:
In addition, your modified adjusted gross income (AGI) may not exceed:
The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date.
In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7 kilowatt hours of battery capacity.
Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:
A vehicle that doesn't meet either requirement will not be eligible for a credit.
To qualify, a vehicle must:
The sale qualifies only if:
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:
If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.
The credit equals:
The maximum credit is $7,500. It is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
The Inflation Reduction Act, H.R. 5376, made broad changes to the clean vehicle tax credit, including extending it through 2032 and creating a new credit for previously owned clean vehicles (Sec. 25E),
For new clean vehicles purchased after Aug. 16, 2022, the tax credit is generally available only if the qualifying vehicle's final assembly occurred in North America (final assembly requirement).
How to check where a vehicle was built
To verify whether a motor vehicle meets the final assembly requirement, dealers and consumers can follow a two-step process (follow link for more information).
https://www.thetaxadviser.com/news/2022/aug/guidance-clean-vehicle-tax-credit.html
The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022.
These expenses may qualify if they meet requirements detailed on energy.gov:
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
Get details on the Energy Efficient Home Improvement Credit.
These expenses may qualify if they meet requirements detailed on energy.gov:
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
Get details on the Residential Clean Energy Credit.
The residential energy property credit is nonrefundable. A nonrefundable tax credit allows taxpayers to lower their tax liability to zero, but not below zero.
The following energy efficient home improvements are eligible for the Energy Efficient Home Improvement Credit:
