A New Filing Requirement Goes Into Effect January 1, 2024… 

That Local Business Owners Need To Know About. 

A new reporting law will affect many (if not most) businesses in our area. The Corporate Transparency Act (CTA), requires corporations, LLCs, and other business entities to provide information abouttheir owners to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The new regulation will take effect January 1, 2024.  

​“The CTA requires affected business entities to file a “Beneficial Owner Information (BOI)” report, including each beneficial owner’s full legal name, date of birth, and residential street address, wellas a unique identifying numberfrom an acceptable legal document such as 

a driver’s license or passport.” The regulations also make it clear that acompany can have multiple beneficial owners, which will all need to be reported to the FinCen. Beneficial ownership information (BOI) refers to identifying information about the individuals who directly or indirectly own or control a company. The regulations currently define BOI as “an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests.  

 According to Gary Rowe, CPA/Owner, M.R. Gaebel Tax and Accounting Professionals this is where the new reporting act gets murky. “The definition of “Substantial Control” has several different meanings, ranging from ownership to key positions and officers. The guidelines provided work through a number of different examples, and each business will need to read the regulations and make determination of key personnel to report. The important thing is that they must do this. It is not optional, unless you are one of the categories of business that is on the “exempt” list. That in itself has many different guidelines to review. Like many new regulations there are many different things to work through. We expect to be very involved with our clients to help them through this process”. 

​From FinCen: “The CTA is part of a major government effort to crack down on corruption, money laundering, terrorist financing, tax fraud, and other illicit activity. The CTA targets the use of anonymous shell companies that facilitate the flow and sheltering of illicit money in the United States. Currently,  few states require corporations,  LLCs, or  other  entities to disclose information about their beneficial owners—that is, the human beings who actually own or control them— or the people who form them. And there has never been a federal requirement to do so. As a result, anonymous shell companies abound, and it can be impossible for law enforcement to discover who really owns them.” 

​Violations of the CTA can result in a $500-a day penalty (up to $10,000) and  up to two  years’ imprisonment. 
The new regulation does not take effect until January 1, 2024. (Note: Businesses are not able to file until then). Filing requirements are as follows: 
If your company existed before January 1, 2024, it must file its initial beneficial ownership information report by January 1, 2025. If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within ninety calendar days after receiving actual or public notice that its creation or registration is effective. 

​The year-round professionals at M.R. Gaebel are constantly staying up to date on the most recent rules enacted (or proposed) by the IRS and utilize that knowledge. For more information on how this new reporting law affects your individual business, please contact M.R. Gaebel at 315-493-1862.  

M. R. Gaebel Tax and Accounting Professionals
Gary Rowe, CPA
Carthage/Watertown
315-493-1862
4/3/23

Tax Filing Extension For Some New York State Storm Victims

The following is a summary of a recent IRS update: IR-2023-58. Residents in St. Lawrence County have had an extension issued by the IRS for tax filings.

“WASHINGTON — New York winter storm and snowstorm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by FEMA as a result of storms that occurred between Dec. 23 and Dec. 28, 2022. This means that individuals and households that reside or have a business in Erie, Genesee, Niagara, St. Lawrence and Suffolk counties qualify for tax relief.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Dec. 23, 2022. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on Jan. 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due Jan. 17, 2023, and instead include it with the 2022 return they file on or before May 15.

The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after Dec. 23, 2022, and before Jan. 9, 2023, will be abated as long as the tax deposits were made by Jan. 9, 2023.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.

You can be assured that the year-round professionals at M.R. Gaebel are constantly staying up to date of the most recent rules enacted (or proposed) by the IRS and utilize that knowledge. M.R. Gaebel has a considerable number of clients in St. Lawrence County, the closest affected county. For more information, please contact M.R. Gaebel at 315-493-1862.

Offering tax and accounting services for the specialized field of racing, Mr. Rowe has personally and professionally been involved in the racing industry for over 50 years. 

RACING

ACCOUNTING SERVICES

INCOME TAX PREP

Update for St. Lawrence County Residents

As previously mentioned you are elegible for a tax filing extension because of snow storms and FEMA declaration...   BUT, NYS has not made any announcement that they too are following the Federal lead. In fact this morning their web page is still plaster with the April 18th deadline. Stay tuned.

Also, even though St Lawrence County residents have an extra 30 days to file an extension the expiration date for the extensions has not changed, September 15th for forms 1120 S and 1065 and October 15th for forms 1120 and 1040. Any questions please message us or give us a call.

IRS to Pay Billions in Interest to Americans Still Waiting on Refunds.

The tax code gives the IRS 45 days to process returns and pay a refund. If it doesn't, the agency has to pay interest, which is now at 4%.

  www.businessinsider.com

M.R. Gaebel, Inc. - Tax and Accounting Services: Proudly Serving Upstate New York

We are proud to help all residents in Northern New York through their tax needs. From military professionals to businesses, find out how we can help you today. 

Why spend countless hours each week doing payroll and record keeping, with the possibility of errors and risks, when you can spend that time running your business and making it a success. 

St. Lawrence County Residents To Get Tax Filing Extension

BRADFORD
TAX INSTITUTE

December 2022

$80 Billion to the IRS: What It Means for You

For the business owner and tax practitioner, the most important part of the Inflation Reduction Act of 2022 was not the tax credit for flashy new electric cars.

It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. The Inflation Reduction Act invests an additional $80 billion in the IRS over the next 10 years. This is the biggest budget increase the IRS has ever received. To put this in perspective, it is almost six times the IRS’s annual $13.8 billion budget.

Some politicians have raised the specter of 87,000 new gun-toting revenue agents scouring the land, looking for tax evaders. This is patently ridiculous.

But the new funding will impact all taxpayers. The average taxpayer should benefit because the IRS will be able to upgrade its operations and improve its woeful levels of service.

​On the other hand, the well-above-average taxpayer should look out: the bulked-up IRS will be gunning for you.

​How Will the IRS Use the Additional Money?

The new IRS funding will be appropriated as follows:

• ​$3,181,500,000 for taxpayer services
  
• ​$45,637,400,000 for enforcement
  
• ​$25,326,400,000 for operations support
  
• $4,750,700,000 for business systems modernization
  

​The appropriated funds will remain available until September 30, 2031.

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America’s income tax rates are staying the same for the current tax season and next year’s. But the tax brackets—the buckets of income that are charged at progressively higher rates—have undergone major inflation adjustments because of the highest price increases in decades. ​

The IRS has released tax brackets for the 2023 tax year that have upper limits 7% higher than the brackets for 2022 returns. If your income isn’t keeping up with inflation, the increases in the brackets make it less likely you’ll pay higher tax rates. 
​You can use the tax brackets to determine how much you can expect to pay in taxes each year.  The 2023 tax year—meaning the return you’ll file in 2024—will have the same seven federal income tax brackets as the 2022-2023 season: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you’re in.

​Contact Us to discuss your individual situation. 

BUSINESS PAYROLL

The tax and accounting professionals at MR Gaebel are open year round and have the experience necessary to maximize your tax refund! And we handle all 50 states.

Healthcare Workers Bonus Causing Tax Filing Confusion 

Taxpayers who work in the healthcare field and received a Health Care and Mental Hygiene Worker Bonus this past year may have some confusion awaiting them when they file their tax returns? Gary Rowe, M.R/ Gaebel Tax and Accounting Professionals has seen some cases where the bonuses (which can range from $500 to $3000) are not properly accounted for on the employees W-2. “The New York State bonus program has different implications for a healthcare workers Federal and New York State filing.

“Quite simply the Bonus is considered taxable income for Federal purposes, but non-taxable for New York State.  There are special IRS rules on how to report it on a workers W-2. We have already seen some local cases where it is not being done correctly.” This could lead to inaccurate earnings reporting. “Like many new programs initiated to assist employees in the last few years there are specific requirements involving tax filing. The concerns for the worker include: “They might not even know there was a problem with their W-2, and many tax preparers might not know how to handle the bonus.” 

You can be assured that the year-round professionals at M.R. Gaebel are constantly staying up to date of the most rules enacted (or proposed) by the IRS and utilize that knowledge. For more information, please contact M.R. Gaebel at 315-493-1862. 

Year-Round Tax and Accounting Services

It seems like every year during tax season many tax preparers open up during the season, then disappear right after...or the so called easy to do tax software becomes popular and then leave you hanging after tax season. 

​Proper tax strategy is a year-round effort. This is even more important if you own your own business, or are self-employed...to deal with payroll taxes, estimated taxes and more. The professionals at M.R. Gaebel Tax and Accounting Services recognize this and are around throughout the year to strategize, answer questions, and deal with anything that comes up. 

​M.R. Gaebel sets the standard of tax and accounting services for businesses and residents of Jefferson, Lewis, and St. Lawrence Counties. They specialize in offering their clients personalized, professional, quality service together with CPA expertise, knowledge and experience…all at affordable rates.

​Appointments are available in Watertown and Carthage. To schedule an appointment , or for more information, please call 315-493-1862. 

315.493.1862

27 Barr Street, carthage, ny

2022-2023 Tax Brackets Changing

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PAYROLL SERVICES

M.R. Gaebel, Inc., located in Carthage, sets the standard of tax and accounting services for businesses and residents of Jefferson, Lewis and St. Lawrence Counties.

We specialize in offering our clients personalized, professional, quality service together with CPA expertise, knowledge and experience, all at affordable rates.

Together Mr. Rowe and his staff have a combined total of 125 years of not only tax preparation experience, but also in tax "controversies," along with handling IRS liens and levys, IRS debts, innocent spouse relief, unfiled tax problems, and payroll. 

Report: IRS Destroyed 30 Million Paper Tax Documents

May 9, 2022
Isaac M. O'Bannon

Administration (TIGTA) has found that the Internal Revenue Service made an intentional decision "to destroy an estimated 30 million paper-filed information return documents in March 2021." TIGTA says the agency did this because of it's inability to catch up on backlogs of paper-filed returns

The report does not say that actual 1040 income tax forms from filers were destroyed, but only that information returns used to support tax filings were. "The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income."

Confusing. Changing. Challenging.  
Just A Few Words To Describe This Year’s Tax Filing Season. 

The Internal Revenue Service began accepting and processing Federal Tax Returns on Monday, January 24th. Many people move to file as soon as they can. There are so many complicating factors to filing a correct return this year, that caution and diligence are strongly advised before you rush into filing. Here are just a few of the issues that need to be focused upon: 

“Child Tax Credits and Economic Impact Payments” May Have Considerable Implications For Your Tax Filing​

The American Rescue Plan Act of 2021 modifies a number of tax provisions, including changes to the child tax credit that could have significant tax implications when filing your 2021 return.  

Under current law, the amount of the child tax credit is equal to $2,000 per child, but only $1,000 of that amount is refundable (meaning that the taxpayer receives the credit even if there is an insufficient amount of taxes to be credited against). The American Rescue Plan increases the amount to $3,000 per child (or $3,600 for a child under the age of six) and makes the credit amount fully refundable. The American Rescue Plan also increases the maximum age of qualifying children to include 17-year-old children. The Treasury and IRS are directed by the American Rescue Plan to issue advance payments of half of the credit amount.  The Child Tax Credits advance payments were sent out monthly starting last June 15th and were calculated based on information from taxpayers’ previous returns, so the taxpayer may have received too much – or too little. In the case of a taxpayer who received advance payments in error (for example, where a 2019 or 2020 return indicated a dependent child who is no longer a dependent in 2021), the American Rescue Plan provides a "hold-harmless" provision, protecting taxpayers from having to pay back overpayments of up to $2,000 per child. The full $2,000 amount is ratably reduced for taxpayers with income above a threshold amount ($40,000 for single filers, $50,000 for head of household filers, and $60,000 for joint filers). The $2,000 is completely eliminated for taxpayers with income double the applicable threshold amounts, and the entirety of the overpayment must be paid back. 

Do you use Venmo, Pay Pal, Cash App or other platforms? You will want to read this...

A new law that requires cash apps and online marketplaces, including Venmo and eBay, to send tax documents to millions of Americans is ensnaring a surprising demographic: the wealthy.

Under the rule, e-commerce and digital payment platforms that transfer money from a buyer of goods or services to a seller must issue the recipient a Form 1099-K if they receive $600 or more in a calendar year. The Internal Revenue Service will also get a copy of the form, which details who got paid and through which third-party service. Lawmakers severely shrank the previous reportable threshold — $20,000 earned through at least 200 transactions — last year as part of the $1.9 trillion stimulus bill known as the American Rescue Plan.