Meadows & Howell, LLC

07/08/2024

📢 Do you own a legal business entity set up by filing documents with the Secretary of State? Such as a Corporation, LLC, etc.? The Corporate Transparency Act of 2021 instituted a new informational filing requirement called Beneficial Ownership Information (BOI) through FinCEN.

Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.

Businesses incorporated or formed before 2024 have until December 31, 2024, to file the BOI. Companies created or registered in 2024 will have 90 calendar days to file after receiving notice that their creation or registration is effective. Starting in 2025, businesses will have 30 days to file. You can file the BOI at the link below:

https://fincen.gov/boi

⚠️ Note: Some businesses are exempt and not required to file a BOI. If a business required to register does not, the legally responsible person may face civil penalties of up to $500 for each day. For more information, check out the link below:

https://fincen.gov/boi-faqs

FinCEN has prepared the following Frequently Asked Questions (FAQs) in response to inquiries received relating to the Beneficial Ownership Information Reporting Rule and Beneficial Ownership Information Access and Safeguards Rule.

06/07/2024

Always be vigilant about tax advice/information posted online! 🚨 Recently, many sites, videos, and social media accounts have falsely reported that new stimulus payments are being issued by the IRS. They claim these payments are for certain states or senior citizens. This information is false. There are no current plans for more stimulus payments. Only trust news from the actual source: www.irs.gov 💻🔗

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

05/31/2024

The IRS announced yesterday that they are making their free file program, Direct File, a permanent option for filing federal tax returns. The program had a successful 2024 pilot season, where 140,803 taxpayers in 12 states used Direct File to file their taxes. The pilot was only available for 12 states' returns in 2024, but the IRS is inviting all states to join moving forward. 📄💰

Link:

IR-2024-151, May 30, 2024 — Following a successful filing season pilot and feedback from a variety of partners, the Internal Revenue Service announced today that it will make Direct File a permanent option for filing federal tax returns starting in the 2025 tax season.

05/22/2024

📜 Alabama Governor Kay Ivey signed Senate Bill 297 into law this week, eliminating capital gains tax on the sale of gold, silver, platinum, or palladium for Alabama income tax purposes. The new law also abolishes the deduction for capital losses on precious metals sales. Aimed at supporting "sound money principles" and combating inflation, this move follows similar actions taken by 12 other states. 🏛️💰

Read more here:

BIRMINGHAM, AL / ACCESSWIRE / May 20, 2024 / Alabama Governor Kay Ivey today signed a bill that removes all income taxes on capital gains from the sale of...

05/16/2024

🚨 The IRS issued a consumer alert warning about scams involving fraudulent tax advice posted on social media, targeting credits like the Fuel Tax Credit, Sick and Family Leave Credit, and household employment taxes. Be cautious and consult a licensed tax professional before claiming any new credit or deduction. If you suspect you made an improper claim, file an amended return promptly to avoid additional penalties and a future audit! 🛡️📝

Read more here:

IR-2024-139, May 14, 2024 — The Internal Revenue Service issued a consumer alert today following ongoing concerns about a series of tax scams and inaccurate social media advice that led thousands of taxpayers to file inflated refund claims during the past tax season.

05/14/2024

📈💰 Great news! The IRS interest rates for the 3rd quarter of 2024 will stay the same. For individual taxpayers, the rate for overpayments and underpayments remains 8% annually, compounded daily. Pay off any tax debt promptly to avoid unnecessary interest! 📑💳

05/08/2024

📣 Earlier this week, the IRS issued a final reminder to file your 2020 tax return to claim any potential refunds! According to IRS estimates over $1 billion in refunds, including the recovery rebate credit (Stimulus Payment), remain unclaimed. The deadline to file for a 2020 income tax refund (without an extension) is May 17, 2024. Don't miss out—file now if you haven't! 📑💰

IR-2024-133, May 6, 2024 ― The Internal Revenue Service today reminded the 1 million people who didn’t file their tax year 2020 returns they may be eligible for a refund if they file by the May 17 deadline.

04/29/2024

🌟🏢 Happy National Small Business Week! The IRS offers valuable resources for small businesses, including guidance on setting up, choosing a business entity, tax compliance, and much more. The IRS provides a wealth of resources at the link below. Check it out! Link: https://www.irs.gov/newsroom/national-small-business-week-irsgov-offers-one-stop-shop-for-small-business-tax-resources 📑💼

IR-2024-125, April 29, 2024 — The Internal Revenue Service today urged small businesses to take advantage of the many tax resources available through the Small Business and Self-Employed Tax Center on IRS.gov.

04/22/2024

⏰💸 Missed the April 15th tax filing deadline? Do you owe taxes and can't full pay the amount owed? File your return and make a partial payment! This reduces interest and penalties and may help avoid/reduce the failure to file penalty. Also, you can file the return and set up an installment agreement with the IRS. Setting up an installment agreement cuts the failure-to-pay penalty in half, from .5% to .25% monthly. Learn more: https://www.irs.gov/newsroom/missed-the-april-tax-filing-deadline-file-quickly-to-avoid-penalties-and-interest-those-owed-a-refund-also-shouldnt-forget-to-file
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IR-2024-116, April 19, 2024 — The Internal Revenue Service today encouraged taxpayers who missed the April tax-filing deadline to file a tax return as soon as they can.

04/19/2024

🛍️📈 Happy Friday! Did you know? E-commerce sales accounted for 15.6% of total U.S. retail sales in 2023. The Alabama Legislature has proposed a bill that would raise online sales tax to over 9% to "level the playing field" for local retail stores. Local retail stores' sales tax rate would remain at 8%. The proposed Bill is heading to a vote on the House Floor. Link: https://www.cbs42.com/alabama-news/bill-to-increase-online-sales-tax-heads-to-alabama-house-floor/
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MONTGOMERY, Ala. (WIAT) — A bill that would raise the online sales tax in Alabama is headed to the State House floor. The current internet sales tax is at eight percent for online purchases. HB 258…

04/17/2024

⏳📊 Now that the 2023 tax season is over, it's time to plan ahead for 2024 taxes! Use the IRS withholding estimator to estimate your tax liability and adjust your withholdings with your employer using Form W-4 if needed. 💰 Learn more here: https://www.irs.gov/individuals/tax-withholding-estimator 📑🧮

Check your W-4 tax withholding with the IRS Tax Withholding Estimator. See how your withholding affects your refund, paycheck or tax due.

04/10/2024

💵📊 Ever feel like you're paying too much in federal income taxes? 🤔 A study released by the Associated Press shows two thirds of Americans "view local, state, and federal taxes as too high and delivering too little value for people like them." Also, the majority of the people surveyed believe that the middle income group pays the most in taxes. 📉

Contrary to popular belief, a 2024 study from the Tax Foundation shows that the top 50% of earners actually pay the majority of the U.S.'s income tax. Estimated around 98%. The middle to low income group (who earn $46,637 or less a year individually) account for only 2.3% of the U.S.'s income taxes paid. 📑


AP Poll Link: https://apnorc.org/projects/majorities-view-local-state-and-federal-taxes-as-too-high-and-delivering-too-little-value-for-people-like-them/

Tax Foundation Link: https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2024/

The public tends to have similar opinions of sales, property, and income taxes, and attitudes toward these taxes are closely tied to political partisanship.