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Maximizing Deductions: A Guide for Small Businesses in 2024

As a small business owner, one of the most effective ways to reduce your taxable income and increase your potential refund is by maximizing your deductions. Understanding which expenses qualify as tax-deductible and keeping accurate records can make a significant difference come tax time.

In 2024, take advantage of key deductions such as home office expenses, business travel costs, equipment purchases, and employee wages. If you’re self-employed, don’t forget to deduct health insurance premiums and retirement contributions.

With proper planning and a clear understanding of available deductions, you can lower your tax liability and ensure your business stays on track financially. Keep detailed records, consult with a tax professional, and be proactive in maximizing deductions for a stress-free filing season.

Child Support and the Consequences of Not Filing Taxes: Avoiding Garnishments

Failing to file taxes or keep up with child support payments can lead to serious financial consequences. If you’re behind on child support, the state can intercept your tax refund through a Federal Tax Refund Offset to cover arrears. Additionally, not filing taxes can result in wage garnishments, bank account levies, or even driver’s license suspensions to collect unpaid support.

To avoid these penalties, it's crucial to:

File your taxes on time, even if you owe child support. If you qualify for a refund, it may be intercepted, but you'll be in compliance with the IRS.
Stay current with child support payments or set up a payment plan if you're behind. Keeping up with payments can help you avoid garnishments and other enforcement actions.
Seek professional help from a tax professional or attorney if you're struggling with unpaid child support or taxes. They can help you navigate payment plans and minimize further legal issues.

By filing taxes on time and staying current with child support, you can prevent garnishments and avoid additional penalties, helping you get back on track financially.

Haven’t Filed in Years? Here’s What You Need to Know

BOI Reporting Requirements and Deadlines

What is BOI Reporting?
BOI (Beneficial Ownership Information) reporting is a requirement under the Corporate Transparency Act (CTA) to collect and report information about the beneficial owners of certain business entities to the Financial Crimes Enforcement Network (FinCEN). This reporting helps to prevent money laundering, fraud, and other illicit activities by ensuring transparency about who owns and controls businesses.

Who Must Report?
Most domestic and foreign corporations, limited liability companies (LLCs), and similar entities created or registered to do business in the United States must comply with BOI reporting requirements. This applies to both new businesses and existing businesses, with some key differences in filing timelines.

New Businesses:
For newly formed entities, BOI reports must be filed within 30 days of registration with the state. The information needs to be updated if there are any changes to ownership or control.

Existing Businesses:
Existing businesses must submit their BOI reports by January 1, 2025. If they haven’t already filed, they must do so by this deadline. In addition, businesses must file updates whenever there are changes to the beneficial ownership information, such as a new owner or change in control.

Exempt Entities
Some entities are exempt from BOI reporting, including:

Large operating companies with over 20 full-time employees and more than $5 million in gross receipts or sales
Regulated entities, such as banks, credit unions, and insurance companies
Inactive entities that are not conducting any business

These exemptions are intended to reduce the reporting burden on businesses already subject to rigorous financial and regulatory oversight.

What Information Must Be Reported?
The information that must be reported includes:

Full legal name of each beneficial owner
Date of birth
Current residential or business address
Unique identifying number from a passport, driver’s license, or other government-issued ID

A beneficial owner is defined as an individual who owns or controls 25% or more of the entity or who exercises significant control over the company.

Why Is BOI Reporting Required?
The primary goal of BOI reporting is to combat illegal financial activities like money laundering, terrorist financing, and tax evasion. By making it easier to track who truly owns and controls businesses, the government aims to ensure more transparency and accountability in the corporate sector.

This requirement also aids in enforcing compliance with U.S. sanctions laws and helps law enforcement agencies investigate financial crimes. It creates a clearer picture of business ownership, ensuring that companies can no longer operate under anonymous structures.

If you haven’t filed your taxes in years, you might feel overwhelmed or unsure of where to start. But don’t worry—there are options available to help you get back on track. Whether it’s due to financial struggles, a busy schedule, or simply forgetting, it’s important to address unfiled taxes as soon as possible to avoid penalties and interest from piling up.

Here’s what you need to do if you haven’t filed in years:

Gather Your Documents
Start by collecting your income records, such as W-2s, 1099s, and any other documents that report your earnings. You’ll also need receipts for deductible expenses and any previous tax returns, if available.
Understand the Penalties
The IRS imposes penalties for not filing taxes on time, as well as for unpaid taxes. However, there may be options to reduce penalties, such as penalty abatement or payment plans. It’s best to file as soon as possible to minimize penalties and interest.
File Missing Returns
You’ll need to file returns for each year you missed. The IRS typically allows you to file up to six years of back taxes. Filing these returns may seem daunting, but a tax professional can assist you in accurately completing the paperwork.
Consider Your Payment Options
If you owe taxes, you can explore payment plans or even negotiate a settlement through an Offer in Compromise (OIC). In some cases, the IRS may offer a payment arrangement that fits your budget.
Stay Compliant Moving Forward
Once you’ve filed the past returns, make sure to stay on top of your taxes going forward. Filing on time each year will help you avoid future penalties and keep your financial situation in good standing.

Don’t let unfiled taxes continue to hang over your head. With the right approach and support, you can get back in good standing with the IRS and move forward confidently. If you're unsure where to begin, seeking guidance from a tax professional can make the process easier and ensure you're taking the right steps. CND MULTISERVICE SOLUTIONS can help you get back on track!

Ready to Optimize Your Tax Situation?

info@cndmultiservicesolutions.com