Spartan Financial Management Inc

The North Carolina General Assembly kicked off its 2025-26 session with several bills that could have significant implications for businesses across the state. Among the first legislative proposals: State Tax Relief for Overtime and Bonuses (H.B. 11)?– This bill aims to exempt overtime pay, up to $2,500 in bonus pay, and tips from state income tax. If enacted, this measure could enhance employee take-home pay and potentially reduce payroll tax liabilities for businesses. Credit/Debit Card Processing Fee Restrictions (H.B. 13)?– Under this bill, merchants in North Carolina would be prohibited from adding extra charges for credit and debit card transactions beyond required payment provider fees. This change could benefit retailers and service providers who rely on card payments while also affecting businesses that offset processing costs through surcharges. Employer Health Coverage Transparency (S.24)?– Designed to provide greater transparency in state-mandated health insurance requirements, this bill could help businesses navigate rising healthcare costs. By evaluating the financial impact of these mandates, lawmakers may consider adjustments to ease employer burdens. Balloon Release Ban (S.20)?– While primarily an environmental measure, this proposed law could impact event planning and promotional activities for businesses that use helium balloons for marketing or celebrations.

2025 filing season underway with expanded services for taxpayers The IRS opened the?2025 tax season?on Jan. 27 with a focus on expanding options and features to help taxpayers. The IRS expects more than 140 million individual tax returns to be filed this season. The filing deadline is April 15. Taxpayers residing in a?federally declared disaster area?may have additional time to file and pay federal taxes.

Tax season 2025?begins on Monday. Visit the?Get Ready page?for information about gathering and organizing tax records, life changes that can affect a refund, what to do with a Form 1099-K, home, and energy-related credits, how to avoid refund delays, and more.?

Companies Not Required to File BOI Reports Despite Supreme Court Order While the U.S. Supreme Court took action yesterday allowing the Financial Crimes Enforcement Network (FinCEN) to penalize entities for not filing required beneficial ownership information (BOI) reports, a?separate?nationwide federal district court injunction remains. In a?statement released today, FinCEN said a temporary injunction issued on Jan. 7 remains in place, barring it from enforcing BOI reporting requirements. Due to the Jan. 7?order issued by the Eastern District of Texas?in?Smith v. U.S. Department of the Treasury, FinCEN says reporting companies are still not subject to liability for failing to submit timely BOI reports while the court considers the case. However, FinCEN notes that reporting companies may still voluntarily submit reports. It is not clear whether the U.S. government will appeal the Smith order or let the injunction barring BOI enforcement to remain in place. The?U.S. Supreme Court’s Jan. 23 order?allowing FinCEN to move forward with enforcement of BOI reporting requirements under the?Corporate Transparency Act?(CTA) addressed a temporary injunction issued by the U.S. Court of Appeals for the 5th Circuit in a separate case. The Eastern District of Texas judge hearing the Smith challenge to the CTA and its BOI reporting requirements claimed a separate injunction was warranted due to the uniqueness of the parties and the different arguments presented in the Smith case. As this situation evolves, we recommend that you evaluate your options and advise your clients accordingly: Option 1: Prepare and voluntarily file BOI reports now to stay ahead of potential compliance deadlines and reduce future risks. Option 2: Wait to file until the courts provide further clarity regarding the Smith case and the injunction. However, we recommend that you advise clients to gather the information necessary to complete their BOI reports in the event the injunction is lifted.

?Wage statements and certain information returns due Jan. 31 Businesses have until Jan. 31 to file?certain information returns and wage statements. The Jan. 31 deadline applies to: Employers filing Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration. Payers filing Form 1099-NEC, Nonemployee Compensation, with the IRS. Jan. 31 is also the deadline to: Furnish copies of W-2, Form 1099-NEC, and other information returns to the recipients. See each form’s filing instructions for the due dates to furnish copies to recipients.

?IRS: 2025 tax filing season to start on Jan. 27; agency continues historic improvements to expand, and enhance tools and filing options The nation’s?2025 tax season will start on Monday, Jan. 27, and will feature expanded and enhanced tools to help taxpayers due to the agency’s historic modernization efforts. Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS Individual Online Account, more access to dozens of tax forms through cell phones and tablets, and expanded alerts for scams and schemes that threaten taxpayers. The IRS is once again working to provide taxpayers expanded help in person through more hours at Taxpayer Assistance Centers nationwide. The IRS also will be focused on continuing high levels of service on its main taxpayer phone lines, with a goal of up to 85% level of service. “These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do,” said IRS Commissioner Danny Werfel. “More can be done with continued investment in the nation’s tax system.” The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the Tuesday, April 15 federal deadline. More than half of all tax returns are expected to be filed this year with the help of a tax professional, and the IRS urges people to use a?trusted tax pro?to avoid potential scams and schemes.

SS Fairness Act Means More Retirement Income On Jan. 5, President Biden signed the?Social Security Fairness Act?into law. The new law could mean additional income for your clients if their retirement benefits were reduced by one or both provisions repealed under this law (Windfall Elimination Provision and Government Pension Offset). The repealed provisions reduced the Social Security retirement benefits individuals, spouses or widows could receive if they earned a government pension and received other income on which they paid Social Security taxes. Under the new law, Social Security benefits payable after December 2023 will not be limited for taxpayers who also receive a government pension. The Social Security Administration is examining how best to implement the changes and distribute any additional amounts due to the more than 2.5 million Americans currently receiving reduced benefits. Taxpayers do not need to apply for retroactive benefits they are owed and will not need to reapply for an increase. They can use the?SSA website?to review their personal account and contact details. Tax preparers are encouraged to talk with clients about how the additional benefit income could affect their tax liability and retirement withdrawal strategy

E-Filing Past Due Returns: The current tax year{IE:2024} and the prior two tax years are accepted during each processing year! For example, for processing year 2025 individual tax returns for tax years 2022,2023,2024 can be electronically filed.

Business Deductions: No business deduction is allowed by a taxpayer for life insurance premiums if the taxpayer is the beneficiary of the policy. {Reg 1.264-1} If an employer is providing the cost of the life insurance as a fringe benefit for employees, the cost is deductible if it is reasonable compensation for the employee.

FinCEN Updates: Alert on Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only of Beneficial Ownership Information Reports12/27/2024You are subscribed to FinCEN Updates. The information below is available at?https://www.fincen.gov/boi ? Alert [December 27, 2024]: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only In light of a recent federal court order,?reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering. The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage. On Tuesday, December 3, 2024, in the case of?Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction.?Texas Top Cop Shop?is only one of several cases that have challenged the Corporate Transparency Act (CTA) pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional. For that reason, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal. On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of?Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. FinCEN immediately issued an alert notifying the public of this ruling, and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, FinCEN extended reporting deadlines. On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, ?