February, 2024

2024 Tax Season Alert #4

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Delays expected

IRS

If you have been following the headlines and the efforts to cut government spending (DOGE), you are aware that the IRS was also recently impacted. Although the IRS was initially put under a hiring freeze as part of an Executive Order, additional steps were taken recently to terminate approximately 6,000 IRS agents.


Reports vary on where these reductions will come from (field agents doing audits, service agents processing returns/refunds, etc.). However, the general consensus is that the timing of these IRS cuts is not ideal and could delay the processing of returns and refunds. Having said that, the IRS website indicates refunds can be expected on average in 21 days which is consistent with prior years.


Colorado

The good news is CO announced on Friday that "income tax processing is now open".


The bad news is

  • This is about a week later than they anticipated,
  • They are still not accepting business tax returns
  • On personal returns, there is a large backlog. Per CDOR - " There will be a delay in acknowledgements during this period. CDOR will work to retrieve and process a limited number of tax returns before the official e-file opening after the controlled launch period. CDOR is working diligently to ensure that the system processes returns accurately and efficiently"
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BOI Yo-Yo Continues...

The back and forth on BOI continues. The US District Court for the Eastern District has lifted the previous injunction on BOI reporting. As a result, the new filing deadline is March 21, 2025.


Although the legal battles on this will likely continue, we still advise the best thing to do is submit the BOI filing and be done with it. The link to the BOI filing site is below. Refer to prior newsletters for additional background on BOI but remember this generally only applies if you have an LLC registered with a state,

BOI Filing Website
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Extension Reminder


Please refer to our last tax alert regarding details on extensions. If you plan to extend and have not notified us yet, please do so.


As we get closer to the applicable due dates (March 17th for business returns and April 15th for personal returns), we will automatically file a courtesy extension for you to make sure you avoid late filing penalties.


United States Capitol Building in Washington_ DC with Shutdown stamp effect

Government funding deadline nears

The current funding of the government expires on March 14th. In order to avoid a potential shutdown, Congress has a few options

  • Pass another temporary funding resolution to keep government open until a future date
  • Agree on a budget to more permanently fund the government


The link below provides some additional insights (courtesy of the AICPA) on the funding status and the current plans being discussed in the House and Senate


Funding Update
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Some oldies but goodies...


Have you heard the one about the fun accountant?

  • Me neither..


How was copper wire invented?

  • Two accountants were fighting over a penny


Did you hear the IRS just announced that you get a write-off for marijuana?

  • All you have to do is file a joint return
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