Another year is behind us and another tax filing season is at hand. In the coming weeks you will be receiving your tax documents from various sources. Not much has changed in this regard.
But there are a few tax issues that clients should be aware of:
Tax Changes
For tax year 2024 there are very few changes that our clients need to be concerned with. But as of this writing, the Tax Cut and Jobs Act of 2017 (TCJA) is set to sunset as of 12/31/25. That means without Congressional action tax law would revert to pre-TCJA rules.
That said, the current administration has offered a slew of changes it would like to see to the tax code. Most experts seem to think the likeliest outcome is some sort of extension of TCJA perhaps with tweaks to items like SALT deductions, widening of tax brackets and the like.
But anyone that tells you they know for certain what will happen is likely trying to either: 1) sell you something, 2) scare you or 3) both. These changes are both political and legislative and thus have to go through those processes before anything can be finalized.
One final note: there is a TON of mis-information on the internet including many posters authoritatively stating that taxes no longer need be paid in lieu of tariffs being imposed on other countries or some other thought processes. This is simply NOT true. There will likely be some changes this year but drastic, wholesale changes to the US income tax code would require an enormous amount of political capital. Even the most ardent supporters of tax repeal recognize that that is HIGHLY unlikely.
Technology
As many of you know we launched a new proposal and billing/payment platform this year called Anchor. This is separate and distinct from Tax Dome that we have been using for a few years as our client portal and workflow management tool.
I know some of this tech can be intimidating and feel overwhelming. Please understand that all of these decisions are made with much thought and intention. Everything we do is done through the lens of increasing our client delivery and work efficiency.
That said, if there is client feedback we are happy to listen to it…whether as it relates to tech platforms or anything else.
Team Members
Melanie Kremen (Mel) has been promoted to the position of Client Service Manager. She is stepping into the position vacated by Olivia who recently welcomed her first child. Mel started with us a bit over two years ago as our office admin and has earned her way into this promotion through her hard work and understanding of client needs.
Fernando will be taking a larger role in this year’s tax preparation delivery as he moves into his 2nd year on the team. Many of you have already communicated with him and he has quickly gotten up to speed with our client needs and our firm’s delivery processes.
We’ve also added 2 part time employees recently:
Kathy Muir is a remote employee that will prepare tax returns and support Mel in her client interaction. Kathy brings 20+ years of experience working with accounting firms both large and small.
Laura Beutler is a local employee that will be in office ~20 hours per week. She has nearly 15 years of experience in small accounting firms in Baltimore County. She will step into Mel’s admin position. Laura will also likely be called upon in a variety of tasks given her extensive knowledge of small accounting firms like ours.
Lastly, Emily and her team continue to offer accounting services to small business clients. If your business needs some assistance or is seeking outside accounting guidance, please reach out to Emily to see if there is a fit.
Deadlines
If we don’t get all client material by March 15, 2025 it is highly likely we will put your return on extension. I realize some clients cringe at the mere mention of extensions but we simply can’t deliver accurate returns given the compression of time that occurs in late March and early April.
To be clear we WILL get you a good estimate of any tax owed so that amount can be paid in by the April 15, 2025 deadline. But with 1099s, k-1s and other tax documents coming in later and later each year the deadline becomes less of a certainty. If you would like to NOT go on extension, the only way to assure that is to get us all of your tax related information by March 15.
Finally, we have been posting various relevant tax posts to our website blog. Here a few recent pieces on widespread bank fraud we have been seeing:
And an idea for high income earners to consider:
Please check back periodically for other posts that may be of interest to you.
We look forward to working with you again this year. If you have any questions or would like to discuss any of our service offerings, please don’t hesitate to contact us.