Quartley Tax Update Q3 of 2024 Key Insights

7 Days Free Trial

for Enterprise Subscriptions

Monthly

$25_{/user
(Minimum 10 users)}

Annually

$199_{/user
(Minimum 3 users)}

Annually

$499_{/user
(Minimum 3 users)}

Trusted by 250,000+ Professionals for Continuing Education

Create Your Account 1/2

Already have an account? Log In

First Name

Last Name

Phone

Company Name

Password

Confirm Password

Promo Code

I Accept myCPE Terms and Conditions

You can cancel anytime during your trial period.

Become a Valued Member of myCPE Professionals Community

Trusted by 250,000+ Professionals

"Steven was knowledgeable and thorough…”

Steven was knowledgeable and thorough in his information about the product and what is offered. He was empathetic to my situation. He went above and beyond answering all of my many questions. Excellent service!

Crystal lovejoy

"Great Customer Service”

Great service and very patient as I asked several questions. Steven answered all my questions and helped me make the right decision in my subscription purchase. Thank you.

Lori corry

"It is what it advertised to be”

It is what it advertised to be. Professional quality training and CPE tracking and certificates; systems knows AZ CPA CPE requirements and categories. I've needed help on several occasions and the assistance was quick and effective; however, there were some problems with data entry. The assistance sometimes asks for input, but when I try to type it is dissallowed for some reason. On several occasions I had to close the popup to get it out of my way.

Brian Carey

"Great customer service”

Great customer service. Classes are pertinent. Great value

Steve

1/4

Create Your Free Account

First Name

Last Name

Email Address

Password

Confirm Password

Continue

Already have an account? Log In

Card No.

Card Holder Name

Expiry Date

CVV

Address

Address 2 (Optional)

Zip Code

I Accept myCPE Terms and Conditions

Guaranteed safe & secure checkout

Pay $199

As we move further into 2024, staying updated on the latest tax changes is crucial for tax professionals. In this quarterly tax update for Q3, Jason Dinesen and Nicholas Preusch cover essential topics ranging from recent IRS updates to new tax legislation. This comprehensive summary will help you stay ahead of the curve and equip you with the actionable insights needed to navigate these updates confidently.

In this blog post, we’ll dive into the key points discussed in the video and break down each topic in an easy-to-understand manner. Whether you're a seasoned tax professional or just starting, you’ll find valuable information to keep you informed.

What You’ll Learn in This Quarterly Tax Update

1. ERC Voluntary Disclosure Program

The IRS has reopened the ERC Voluntary Disclosure Program until November 2024. This program allows businesses to pay back 85% of the claimed ERC. Be sure to check if your clients fall into this category and act accordingly.

2. Family Management Companies

Many practitioners are discussing strategies like setting up family management companies to save on payroll taxes. However, as discussed, this strategy is fraught with potential pitfalls, including Section 7701(o) economic substance rules. It's crucial to understand the risks involved before advising clients to adopt such strategies.

3. S-Corp Disproportionate DistributionsS-Corp Distributions

A recent Tax Court case (Maggard) clarified that disproportionate distributions do not automatically impact S-corp election, but the governing documents play a significant role. This is an essential point for firms managing multiple distributions.

4. FinCEN BOI (Beneficial Ownership Information)

FinCEN is actively conducting webinars and issuing updates regarding BOI reporting. It’s important to understand how these updates affect tax compliance, especially concerning exemptions and ownership structures.

5. Government Shutdown & Tax Implications

Though a shutdown was averted, it’s important to keep an eye on possible tax-related consequences in the coming months.

ERC: Who Are Related Individuals?

The IRS has clarified the rules around related individuals concerning ERC. This clarification includes family members such as children, parents, siblings, and in-laws. For businesses claiming the ERC, this update provides critical guidance on how to avoid misclassification and non-qualified wages.

S-Corp Distributions: What You Need to Know

S-Corps must avoid disproportionate distributions to maintain their tax status. The IRS has provided new guidance, clarifying that these distributions, while problematic, do not always disqualify an S-election. This update should prompt businesses to review their governing documents and ensure they are compliant.

IRS Warnings: SE Credit and Clean Energy Scams

The IRS has issued several warnings about scams targeting taxpayers and tax professionals alike. Two notable scams include the "SE Credit Scam" and the "Clean Energy Credit Scam." The former promises large refunds based on the "self-employment tax credit," while the latter falsely claims clean energy credits under the Inflation Reduction Act. As professionals, it's critical to be vigilant and educate clients about these scams.

Key Takeaways from the Q3 Monthly Tax Update

Here are the key insights from the Q3 Monthly Tax Update of 2024:

ERC Voluntary Disclosure Program: Open until November 2024. Businesses can repay 85% of claimed ERC.
Family Management Companies: Risky strategy for payroll tax savings. Watch out for Section 7701(o) rules.
S-Corp Disproportionate Distributions: Review governing documents for compliance.
FinCEN BOI Reporting: Stay updated on FinCEN’s webinars and BOI requirements.
IRS Scam Alerts: Watch for scams targeting SE credits and clean energy credits.

Conclusion

At MY-CPE, we understand that staying updated on tax regulations and changes can be overwhelming. That’s why we provide tax professionals with comprehensive, up-to-date resources to ensure they remain compliant and informed. By reading this post, you’ve gained a solid understanding of Q3's tax updates and how they might affect your clients.

To learn more and access expert-led courses on the latest tax updates, visit MY-CPE today. Our courses are designed to fit your schedule, offering flexibility and ensuring you meet your CPE requirements efficiently.

Report the scam to the IRS and advise your clients to be cautious of unsolicited offers that promise large refunds or credits.

FAQs

The ERC Voluntary Disclosure Program allows businesses to pay back 85% of the claimed Employee Retention Credit. It is open until November 2024.

Disproportionate distributions refer to distributions made unevenly among S-Corp shareholders. While these are generally discouraged, the IRS clarified that governing documents play a critical role in maintaining S-Corp status.

The IRS has warned about SE Credit scams and Clean Energy Credit scams. Both of these are targeting self-employed individuals and businesses through false claims of refunds and tax credits.

Jason Dinesen

President, Dinesen Tax & Accounting, P.C.

Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. Dinesen is a regular CPE Presenter at MYCPE ONE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics. Jason has developed a strong following within the professional community for tax-related subjects. Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community.