March 15th Deadline for S-Corporations and Partnerships to File and Fund, or Extend

Just a reminder that the deadline to file your S-Corporation and Partnership tax returns is March 15th. If those tax returns won’t be completed by then, make sure to file an extension by March 15th.

Not filing a tax return or extension for your S-Corp or Partnership by March 15th gets very expensive very quickly. The IRS currently charges a penalty of $220 per shareholder or partner per month that the return is late.

And if you need more time to fund your 2023 retirement plan, make sure to file for an extension by 3/15. That will give you all the way until September 15th to fund the retirement plan for your practice for 2023. Do NOT file your practice tax return by 3/15/24 if you want to give yourself more time to finalize your 2023 retirement plan contributions. Instead, submit only the extension request with the IRS at this time even if you can file your business return.

More info about filing extensions is available from the IRS at: Extension of Time To File Your Tax Return | Internal Revenue Service (irs.gov)

 

Take 10 Minutes to Comply with the New CTA Rules With These 12 Easy Steps

In 2024, a stringent new filing requirement takes effect under the Corporate Transparency Act. The act compels all qualifying small businesses, including S-Corps and LLC, to disclose certain identifying information on “beneficial owners” to the Financial Crimes Enforcement Network (FinCEN).

Penalties for noncompliance are extremely steep, so we are strongly urging all small business owners to make CTA compliance a priority. Please read through the compliance guide on your own, or plan to work with an attorney to gather the required information, complete the BOI report, and then submit to FinCEN prior to the January 1, 2025 deadline.

Recently, we submitted the online application for a small business we own and found that the following twelve-step process takes just about ten minutes to complete:

  1. Start at: Beneficial Ownership Information Reporting | FinCEN.gov
  2. Click on the BOI E-Filing System at: BOI E-FILING (fincen.gov)
  3. Click on the link to Get Started
  4. Find the File Online BOIR box and click on Prepare & Submit BOIR button
  5. Click on Initial Report as Type of Filing
  6. Check the box next to: Request to receive FinCen ID, and enter the Company’s Legal Name
  7. Input the following information into the next few boxes:
    1. Select EIN
    2. Input the 9-digit EIN for the business with no dashes
    3. Enter United State of America in Box 10a
    4. Select the State of formation in Box 10b
    5. Enter the business address in box 11
  8. If your business was established before 1/1/2024, check Box 16 for an Existing reporting company, and click Next at the bottom of the screen to move Part III
  9. Starting at box 38, add the name, date of birth, and address for each person who controls more than 25% of ownership interests or exercises substantial control of the business
  10. Have a photo of each Beneficial Owner’s drivers license or passport ready to upload, then complete the information for Form of identification and issuing jurisdiction and upload the license or passport.
  11. Fill in your email address and name. Click Submit BOIR.
  12. Download the Transcript

CTA BASICS:

Effective January 1, 2024, the Corporate Transparency Act (CTA) establishes a new filing requirement for small business, including S-Corporations and LLCs. Qualifying businesses must file a Beneficial Owner Information (BOI) report with Financial Crimes Enforcement network (FinCEN), a bureau under the Department of Treasury. According to the bureau’s website, the expectation is that nearly all small businesses will meet the criteria and must file (Beneficial Ownership Information Reporting FAQS).

Urgent: March 31st is Deadline to Satisfy Next Round of PRF Self-Reporting

Practice owners who received Provider Relief Fund (PRF) payments exceeding $10,000 in the aggregate between July 1, 2022 and December 31, 2022 are required to self-report during Reporting Period 6 (RP6) which closes on March 31st.

Providers who fail to comply with this requirement by March 31, 2024 will be deemed out of compliance with the program’s Terms and Conditions and could be subject to forfeiture of all PRF subsidies received during the second half of 2022. Check out the Provider Relief Fund Reporting Non-Compliance Fact Sheet at: https://www.hrsa.gov/sites/default/files/hrsa/provider-relief/reporting-non-compliance-fact-sheet.pdf.

For our clients who are required to report on PRF payments, you have likely received multiple emails from HRSA about the need to self-report. If you would like our assistance to self-report, please email us prf@schwartzaccountants.com soon so we can help you meet the March 31st deadline.

For any S&S clients who have already completed the reporting requirement on their own or plan to do so by March 31st, please reach out to us at prf@schwartzaccountants.com and let us know so we can update our records accordingly.

More info about the self-reporting requirement and the March 31st deadline is available at: https://www.hrsa.gov/provider-relief/reporting-auditing. We do charge a $750 fee to assist our clients with the self-reporting application.

Updated List of Tax Credits for EV Vehicles Purchased in 2023 or After

According to information posted by the US Department of Energy, Office of Energy Efficient and Renewable Energy, the official US government source for fuel economy information:

All-electricplug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500. The availability of the credit will depend on several factors, including the vehicle’s MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI). Learn more about requirements. 

Qualified vehicles purchased before 2023 may be eligible for a similar tax credit of up to $7,500. Pre-owned vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000. State and/or local tax incentives may also apply.

The information on this page applies to the Clean Vehicle Credit available to individuals and businesses. For details about the credit available to businesses and non-profit organizations, see Commercial Clean Vehicle Credit (IRS).

Note: Some qualified manufacturers have yet to submit information on eligible vehicles that meet the current requirements. Please check back for updated information.

Search for Eligible Vehicles

Vehicle eligibility for some makes and models depends on the date you take delivery of the vehicle—this is sometimes called the placed-in-service date. Search for specific EV models at: Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After (fueleconomy.gov)

In accordance with new IRS regulations, beginning January 1, 2024, Clean Vehicle Tax Credits must be initiated and approved at the time of sale. Buyers are advised to obtain a copy of the IRS’s confirmation that a “time-of-sale” report was submitted successfully by the dealer. Go to IRS publication 5900 to learn more!

Locum Tenens Tax Guide Updated For 2023 & 2024 Now Available for Download

Recently, Andrew Schwartz CPA presented at his annual webinar sponsored by Barton Associates, the Locum Tenens Experts, on the tax issues and basic financial planning opportunities applicable to Locum Tenens providers. Much of the information presented is relevant to all self-employed professionals even those not working as Locum Tenens providers.

The webinar covers these tax and basic financial planning topics:

  • Common deductions, including business expenses and health insurance
  • Retirement plan options
  • Health Savings Accounts
  • Estimated taxes
  • Multi-state issues
  • S-Corp Considerations

You can download the updated Tax Guide for Locum Tenens Providers or watch the one-hour long recorded webinar.

Barton Associates offers healthcare jobs for locum tenens physicians, doctors, NPs, Pas, dentists, psychologists, and more in all 50 states.