The latest IRS data reveals a 1.7% decline in individual income tax return filings, hinting at a slow start to the 2024 tax season. Factors contributing to this drop include tax code alterations, economic challenges, and the confusing tax return filing process.
The upcoming Tax Relief for American Families and Workers Act has led to many taxpayers delaying their filings. This Act looks to backwardly extend the child tax credit to 2023. Even though the proposed changes could reduce tax burdens, the delay in Senate voting is creating uncertainty and complication. Experts continue to advise prompt filing to avoid any unanticipated complications and penalties.
In his recent State of the Union address, President Joe Biden proposed the revival of a wider child tax credit. However, he left out the Research and Development credit, a typical talking point in corporate tax discourses. In the same speech, he detailed a plan for a tax overhaul which includes a 25% tax rate for billionaires and assurance that those earning less than $400,000 will not face increased federal tax bills. He also suggested raising the corporate tax rate to at least 21%.
The Corporate Transparency Act was recently ruled unconstitutional by U.S. District Judge Liles C. Burke. Following an appeal on March 11, 2024, enforcement of the act against the National Small Business Association has been halted. This ruling comes to the relief of many as the Association continues to operate without constraints from the now-invalid legislation.
The U.S. Department of Justice and the Treasury Department’s Financial Crimes Enforcement Network have pledged their support to the National Small Business Association post judgment. This collaboration aims at arming small businesses against financial crimes and comes as a welcome initiative by the Association, who have been advocating for such backing a long while.
