October Newsletter

Corporate Transparency Act/Beneficial Ownership Reporting Update

(Every client who is an owner, officer or controlling person in an LLC, Partnership, or Corporation needs to read this)

As some of you are aware, when this act was first introduced, CPAs were encouraged not to file BOI reports for their clients because it was deemed to be an “unauthorized practice of law”. Recently, State Attorney Generals have deemed this not to be the case. Because of this, we are now offering this valuable service to our clients. We will gather the necessary information from our clients, answer any questions and e-file the report on your behalf. Our fee for this service is $400 per entity for the initial filing. Once we have filed the initial report for you, we will be sending monthly reminders and offering compliance assistance (beginning in 2025, annual fees apply). This monthly compliance assistance will be included with our Tiered Memberships (Silver & above). Penalties for late compliance are currently $591 per day. Click here to read more about the CTA/BOI reporting. Jellison CPA Resources

This new requirement will impact most of our business clients (including our Schedule C businesses and Schedule E rental properties). See some misconceptions below.

Jenna will be reaching out over the next few weeks via Safe Send to see if you would like our assistance to file the initial report. If you have any questions or want to sign up for our service now, please reach out to Jenna@jellisoncpa.com.

Some misconceptions about BOI reporting under the Corporate Transparency Act:

My business is too small – The requirement is geared towards small businesses. If you are a small business, you are likely required to file.
My business does not have enough revenue – This does not exempt you. A business with zero revenue would still be required to file.
My business doesn’t have enough employees – This does not exempt you. A business with zero employees would still be required to file.
Business not currently operating –
If you did not dissolve your business with the state before 01/01/2024, you are required to file.
If you started a new business and filed paperwork with the state, even if you are not operational yet, you are required to file.

Avoiding Fraudulent CTA/BOI Letter Scams

Small business owners around the country have been receiving “Form 4022,” a letter from the “United States Business Regulation Department” under the guise of enforcing the recently effective Corporate Transparency Act (CTA). These letters, which resemble an official IRS form, demand business owners pay a fee of $117.00 or be subject to severe penalties.

First and foremost, there is no such thing as Form 4022 or a Business Regulation Department, and there is no filing fee under the CTA. Do not complete and return these forms. By completing the requested information and submitting a check or money order, scammers may attempt to steal your identity or open a new line of credit in the name of your business—consequences that may be significantly worse than theft of $117.00.

WELCOME BACK KAITLYN

Although Kaitlyn has enjoyed her time off with new baby Ava and big sister Drew, she will be officially back to work Monday, October 7. She will be available Mondays, Wednesdays and Fridays.

2024 Tax Projections

As we near the end of 2024, we encourage all of our clients to take a few minutes to reflect on the year. Have you had significant changes? Do you expect to have changes in the remaining months of 2024? Do you want to make sure that you will not owe a considerable amount with your 2024 return? There are many reasons why a tax projection may be helpful.

There is still time to check in with us to see if you would benefit from a tax projection. Please get in touch with Kim at kim@jellisoncpa.com if you are interested in this service

*Please keep in mind that tax projections and tax planning services are outside the scope of your 1040 preparation and an additional fee will apply.

Office Hours

Monday-Friday 9:00am-4:00pm