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The IRS’s early release of the 2024 Form 1120 includes updates to Schedule J, now requiring detailed reporting on transactions like PFIC items, Sec. 197 asset dispositions, and partnership items. This change aligns with a broader trend toward demanding more detailed supporting data in tax returns. Companies must enhance their data management practices, and the Tax Series is equipped to support these detailed transaction requirements. #scheduleJ #Taxseries #Form1120

IRS and Treasury issue final regulations on e-file for businesses affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns. The final regulations reflect changes made by the Taxpayer First Act (TFA) to increase e-filing without undue hardship on taxpayers. Specifically, the final regulations: reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed; require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations; eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return. Stay Compliant!

Is Your Analyst Spending Weeks on Tax Notices? There's a Better Way! Many PE firms struggle with slow notice response times. This can lead to missed deadlines, penalties, and even IRS scrutiny. But there's a solution! Our blog discusses the dangers of slow response times and offers tips for streamlining the process, including the benefits of using automation tools like NOTICENINJA. #PE #taxcompliance #digitalautomation #tax https://hubs.la/Q02spQj-0

If you've mistakenly made an estimated tax payment instead of a passthrough entity elective tax payment, you've probably wondered if you can reapply it... A workaround to this has been to simply apply the estimated tax payments to the passthrough entity elective tax payment when the return is filed. However, it was unclear to many tax professionals whether this was allowable since the FTB had stated that the passthrough entity elective tax payment would only be recognized if: • paid with Form 3893 • via Web Pay as a passthrough entity elective tax payment • by electronic funds withdrawal when using tax software But the FTB recently clarified that taxpayers can now move these payments: “[W]hen the business representative inadvertently directs the application of a payment to be applied as an estimate payment, FTB can accommodate a request to correct the error to apply the payment as intended. Any request should be submitted in writing and must include the business representative's acknowledgment that reapplying the erroneous estimate payment to another liability may result in penalties and interest in the tax year where the payment was originally applied. These requests can be submitted securely through a MyFTB account. Tax professionals may also contact the Tax Practitioner Hotline and speak with a representative to adjust the payment. A written request will still be required.” Here is what to know: • Submit a written request to reapply the estimated tax payment prior to the entity return being filed (The FTB has updated its Tax Practitioner Hotline) • This process is ONLY available if the entity made the estimated tax payment. • An individual owner’s estimated tax payment cannot be applied to the passthrough entity elective tax because that involves two different taxpayers. ---------------------------------- Follow us for more #tax and #accounting tips! ---------------------------------- If you need help with #taxes or #accounting, contact us at www.mbs.cpa.

Filing a tax extension? Here's what you need to know: Q. Does filing a tax extension lead to extra charges from the IRS? A. No, there are no extra taxes or penalties for filing an extension. However, remember it only extends the filing deadline, not the payment deadline. If you fail to pay your total tax due, you could end up owing penalties and interest. Q. Can I make a tax payment online if I have a rough estimate of what I owe? A. Yes, you can pay online at www.irs.gov/payments with your 2021 tax data. We can assist with determining the correct amount if needed. Q. What are the other effects of filing an extension? A. Filing an extension simply provides more time to finalize your return and extends the statute of limitations. Some special cases may see potential benefits from retroactive legislative changes. Q. Does filing an extension increase the chance of an IRS audit? A. No, that's a myth. Audit selection is based on other factors, not on filing extensions. Q. What happens if I overpay with an extension? A. Overpayment can be refunded or applied to future taxes. Q. Do you charge for filing tax extensions? A. No, it's a courtesy service for our clients, both returning and new.

📢 July 31 is here 🚨 If you haven't filed your #IncomeTaxReturns yet, time is running out ⏳ Missing the deadline can have serious consequences 🚫 🔍 Here are 10 common mistakes you must avoid while filing returns at the last minute 👇 https://lnkd.in/d37Vm4Ug #ITR #Tax 

All companies with a presence in the UK are required to file a Corporation Tax return with HMRC. Returns are typically due 12 months after the end of the company's accounting period. The Corporation Tax due/refundable is based on the company's tax adjusted profit/loss for the period. Tax return services offered by a professional can help to make sure you always pay the correct amount of tax and not too much. Technology companies often spend a significant amount of time and money investing in their technology. In addition to preparing your company tax return, we will identify ways you can minimise your tax bill, such as: ·       Claiming R&D tax credits ·       Making use of the patent box ·       Tax relief on capital expenditure We use your business accounts and associated records to prepare your Corporation Tax return and, where required, supplementary Corporation Tax pages. We then submit the returns to HMRC, giving your peace of mind that all relevant reliefs and incentives have been claimed and that the tax due has been calculated accurately. We offer hassle free tax compliance services and ensure you never pay more tax than necessary. For a free consultation, call us today on 020 8058 3532 #techrelief #businessadvisors #accountants #tax #taxaffairs

#Form1120, the U.S. Corporation Income Tax Return. Here are some concise versions of the hardest interview questions and answers related to Form 1120: Q1: What is Form 1120 used for? Answer: Form 1120 is used by corporations to report income, gains, losses, deductions, credits, and determine their tax liability. Q2: Difference between Schedule M-1 and Schedule M-3? Answer: Schedule M-1 reconciles book income with tax income. Schedule M-3 is a more detailed reconciliation required for corporations with $10 million or more in assets. Q3. How are Net Operating Losses (#NOLs) handled? Answer: NOLs can be carried forward indefinitely to offset up to 80% of taxable income in future years. Q4: How do you calculate the Dividends Received Deduction (#DRD)? Answer: DRD is 50% for less than 20% ownership, 65% for 20-80% ownership, and 100% for over 80% ownership in other domestic corporations. Q5: Purpose of Schedule K and Schedule L? Answer: Schedule K lists income and deductions; Schedule L shows the balance sheet at the start and end of the year. Q6: How are tax credits applied? Answer: Tax credits reduce tax liability and are reported on the relevant lines of Form 1120, often requiring additional forms like Form 3800. Q7: How is depreciation/amortization reported? Answer: Reported on Form 4562 and carried to Form 1120, using methods like #MACRS. Q8: Challenges in reporting international transactions? Answer: Includes transfer pricing, foreign tax credits, and #FATCA compliance, requiring forms like 5471 and 5472. Q9: How do you stay updated on tax law changes? Answer: Through continuous education, tax law publications, industry conferences, and updated tax software. Q10: How are capital gains/losses treated? Answer: Reported on Schedule D; gains taxed at corporate rate, losses offset gains, with carryback three years and carryforward five years. These questions test key knowledge areas for handling Form 1120 accurately and compliantly.

Advisory on mandatory Sequential Filing of GSTR-7 Returns as per Notification No. 17/2024 Dec 4th, 2024 Multiple tickets have been received regarding sequential filing of return in Form GSTR-7. Taxpayers are referencing FAQs for the same, wherein “it is not mandatory” is mentioned. To clarify, It is to inform that following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards. Sequential Filing of GSTR-7: As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from the 01.11.2024, GSTR-7 filing has been made sequential from the October tax period. Hence, GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction have been made, deductors need to file NiL return for the same month. For any further assistance, taxpayers may contact the GSTN helpdesk. Thanking You, Team GSTN

Deferred tax refers to taxes that a company has either overpaid or underpaid due to differences between accounting rules (used for financial reporting) and tax laws (used for filing taxes). Essentially, it’s a timing difference in how income and expenses are recognized in financial statements versus tax returns. There are two main types of deferred tax: 1. Deferred Tax Assets (DTA): These arise when a company has paid more tax than required or expects to benefit from future tax deductions. For example, if a company recognizes an expense on its financial statements but hasn’t been able to deduct it for tax purposes yet, it might create a deferred tax asset. 2. Deferred Tax Liabilities (DTL): These arise when a company has paid less tax than it owes. This typically happens when income is recognized for accounting purposes but hasn’t been recognized for tax purposes yet. For example, if a company depreciates an asset more quickly for tax purposes than for financial reporting purposes, it could create a deferred tax liability. Deferred tax is recorded on the balance sheet and adjusts over time as the differences between accounting and tax treatment reverse.