The Fate of a Finished Filing Season Still in Limbo
One significant concern is the Corporate Transparency Act, which has faced legal challenges and caused confusion among small businesses regarding their reporting requirements. The American Institute of CPAs has called for the suspension of enforcement actions until related court cases are resolved. Failure to address this issue could lead to widespread noncompliance in the small business sector.
Most smaller, closely held businesses were required to comply with new transparency reporting requirements, although many were still unaware of the new regulations' existence at the beginning of the year. Penalties were set to begin at the end of March for non-compliance, but the overall fate of the requirements as a whole is now in question entirely.
Another pending matter is the Tax Relief for American Families and Workers Act of 2024, which has passed the House but awaits action in the Senate. This legislation includes taxpayer-friendly changes to the Child Tax Credit and several business provisions. While the bill's fate remains uncertain, it is expected to pass in some form after the November elections.
Looking ahead, the 2024 tax season may be the last "normal" one for a while, with the convergence of a new 1099-K form, the presidential election, and expiring Trump-era provisions. Tax practice owners and managers should closely monitor developments and be prepared for potential retroactive changes. Most taxpayers did not delay the filing of their 2023 returns despite pending law changes and the IRS still insists that automatic changes for individual filers impacted by any changes to the child tax credit will be addressed.
Uncertainties will persist throughout the remainder of 2024 even with April behind us. Tax practitioners are used to having to keep up with changing legal landscapes, although it is unusual to have so many pending retroactive changes combined in the same year. Practitioners should anticipate a slightly wilder ride heading into the next filing season.
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.