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2024 IRS/Federal Law Changes: Election year= campaigning. Not a lot of tax law changes. Not an all inclusive list, general changes from tax newsletter that affect small businesses and individuals

1. Condoms are medical supplies and are tax deductible as medical expense. Check with HSA provider to see if Health Saving Account qualified.

2. Corporate Transparency Act—Still Law. All business owners registered with the Secretary of State (e. g. LLC) must electronically file (ONLINE) a Beneficial Owner Information report on the finCEN website (https://fincen.gov/boi) UNLESS an exception applies. Report includes owner name, address, SSN, EIN, and a scanned photo id. Partner’s information is included if more than ten percent ownership interest. If business was operating before January 1, 2024 filing deadline is December 30, 2024. If business started during 2024 have 90 days to file. Penalties are $519.00 per day and/or up to two years in prison. Not tax law, so legally can’t help. Contact attorney or consult the finCEN website help pages. December 12, 2024 update: Texas Top Cop Shop, Inc. v. Merrick Garland, Attorney General of the United States, U.S. District Court for the Eastern District of Texas On  December 3, 2024.Texas Court issued Nationwide injunction. There is no Beneficial Owner filing requirement until further order of the Court.

3. Online sellers—(e. g. Ebay, Etsy etc) May receive a 1099K if sales are more than $5,000.00. Provide this form to tax pro if received. IRS matches these. Report or there will be an IRS “LOVE LETTER” waiting.

4. Secure Act Changes—Yes you can take $1,000.00 emergency distribution from 401K penalty free, BUT distribution is taxable. If take the distribution regardless of reason, there will be a tax bill.

5. Divorced? Ex filed first claiming the child you were supposed to claim this year? Tired of paper filing taxes to correct the situation? IRS Change: If the “Ex” files first claiming the child in error, the correct parent can electronically file their return claiming the same child IF an IP PIN is on the return. The IRS adjusts the “erroneous claim”. IRS IP Pin request processing can take up to six weeks so file early. For more info: See https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin https://www.cpapracticeadvisor.com/2024/11/21/for-2025-filing-season-irs-says-it-will-accept-duplicate-dependent-returns-with-an-ip-pin/113634/

6. IRS 2023 Direct File Pilot Program (free tax filing direct with IRS) is expanding for 2024. Now covers almost twenty states (sorry Ohio isn’t one of them). Program is by invitation only for simple returns.