MERRY CHRISTMAS & HAPPY NEW YEAR!

**UPDATE: A federal district court issued an order on December 3 prohibiting the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting rule, citing likely unconstitutionality. On December 5, the Department of Justice (DOJ) appealed to the Fifth Circuit. The Financial Crimes Enforcement Network (FinCEN) issued an alert providing that reporting companies are not currently required to file BOI reports while the order remains in force but can do so voluntarily.  At this time, we do not know how the Fifth Circuit court will respond.  The Fifth Circuit court could just as easily narrow the scope of the injunction to the named plaintiffs or stay the entire injunction allowing FinCEN to enforce the BOI reporting. All this could happen prior to the Jan. 1, 2025, deadline.   Please continue to check the website at https://www.fincen.gov/boi for the latest updates.

*IF YOU ARE REQUIRED TO REPORT AND HAVE ALREADY REPORTED, PLEASE DISREGARD.*

2024 BENEFICIAL OWNERSHIP INFORMATION REPORTING**

• A new federal reporting requirement effective January 1, 2024, for Beneficial Ownership Information (BOI) requires many businesses in the United States to report information about their beneficial owners to FinCEN, a bureau of the U.S. Department of Treasury.
• The filing requirement must be completed online on FinCEN's website.
• If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI.
• If your company is created or registered in 2024, you must report within 90 calendar days after registration is effective.
• There are 23 exemptions from reporting.
• Due to the nature of the information to be reported and specifics for filing, we are recommending all businesses subject to BOI to contact your attorney for assistance.  
• Penalties for willful noncompliance are serious including civil penalties up to $500 per day the violation continues and criminal penalties including a fine up to $10,000 and two years of imprisonment.

FORM 1099 INFORMATION: Does your business need to file?

• Form 1099-NEC is used to report payments for nonemployee compensation by unincorporated vendors and independent contractors when those payments total $600 or more for the year.
• Form 1099-MISC is used for payments including, but not limited to, rents, prizes and awards, other income, medical and health care payments, and payments to attorneys (in the course of business but not for services) when those payments total $600 or more for the year.

2024 Year-End Individual Tax Letter

2024 Year-End Small Business Tax Letter

2024 Jennings & Clouse, PLC Tax Season Policies

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