Learning Center for Tax and Financial Insights

On February 18, 2025, the federal district court lifted the last remaining nationwide injunction stopping beneficial ownership information (BOI) filing requirements.On February 6, 2025, FinCEN issued an alert stating that if the district court’s order is stayed, thereby allowing FinCEN’s Reporting Rule to come back into effect, FinCEN intends to extend the reporting deadline for all reporting companies 30 days from the date the stay is granted. Further, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, FinCEN, during that 30-day period, will assess its options to modify further deadlines or reporting requirements for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.FinCEN has not yet provided updated specific dates on its website.The Current Status – For the time being businesses have at least until March 21, 2025 to file BOI reports and no late filing penalties will apply if filed by that date.Certain entities that were previously given a reporting deadline beyond March 21, such as those granted disaster relief, have exceptions. Specifically, those affected by Hurricanes Debby, Francine, Helene, and Milton now have until April 23, 2025, to submit their beneficial ownership information reports, according to FinCEN. However, those impacted by Hurricane Beryl and initially given an extension until February 6, 2025, must adhere to the March 21 deadline.

The "Where’s My Refund" tool is accessible via the IRS website and the IRS2Go mobile app. It provides personalized refund information based on the processing of your tax return. To use the tool, you need to provide your Social Security number, filing status, and the exact whole dollar amount of your expected refund. This information allows the IRS to locate your return and provide an update on its status.How to Use the Tool:o Access the Tool: Visit the IRS website or download the IRS2Go app on your mobile device.o For amended returns, visit: Where’s My Amended Return.o Enter Required Information: Input your Social Security number, filing status, and the exact refund amount from line 35a of your Form 1040.o Check Status: The tool will display your refund status, which progresses through three stages:§ Return Received,§ Refund Approved, and§ Refund Sent.o Update Frequency: The tool is updated once every 24 hours, typically overnight, so there is no need to check more frequently than that.If you e-file your return, you can usually see your refund status after about 48 hours with Where's My Refund? You can get your refund information for the current year and past 2 years. The Role of Your Social Security Number - Your Social Security number is a critical piece of information when using the "Where’s My Refund?" tool. It serves as a unique identifier that allows the IRS to match your inquiry with your tax return. Ensuring the accuracy of this number is vital to avoid delays or errors in accessing your refund status.Expected Timelines for Refunds - The IRS issues more than 90% of refunds in less than 21 days for e-filed returns. However, the timeline can vary based on several factors, including the method of filing and any additional reviews required.o Up to 21 days for an e-filed return.o Allow4 weeks or more for returns sent by mail.o Generally, allow 8 to 12 weeks for an amended return (Form 1040-X) to be processed. However, in some cases, processing could take up to 16 weeks.o Longer if your return needs corrections or extra review.

This is the fifth in a series of articles for clients to keep them updated on the thinking on Capitol Hill on proposed tax changes so they can plan appropriately. This delves into a pair of Senate bills that would kill electric vehicle (EV) credits.Article Highlights:Electric (ELITE) Vehicles Act$7,500 and $4,000 EV Tax CreditsElectric Vehicles (Fair SHARE) ActOne-time Tax of $1,000 on the Purchase of EVs.Electric (ELITE) Vehicles Act - Senator John Barrasso (R-WY) has introduced the Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act (Senate Bill 541), a piece of proposed legislation aimed at terminating the $7,500 tax credit for new EVs and $4,000 credit for used ones. Additionally, the act seeks to abolish the federal investment tax credit for those constructing EV charging stations.The legislation is supported by Senate Majority Leader John Thune and 13 other Republican senators. It has also garnered backing from groups such as the American Fuel & Petrochemical Manufacturers, the National Taxpayers Union, and Americans for Prosperity.Electric Vehicles (Fair SHARE) Act - Senator Deb Fischer (R-NE) has introduced a legislative proposal called the Fair Sharing of Highways and Roads for Electric Vehicles (Fair SHARE) Act. This bill aims to require electric vehicle (EV) owners to contribute to the Highway Trust Fund (HTF), which is crucial for funding the maintenance of roads and bridges, and that is currently funded primarily by a federal tax on gasoline and diesel fuel. It proposes a one-time tax of $1,000 on the purchase of EVs.

In a significant shift impacting the tax landscape, the Internal Revenue Service (IRS) is projected to lay off approximately 6,700 employees right in the middle of tax season. As of the announcement, the IRS had expanded its workforce to roughly 100,000 employees after hiring initiatives initiated by the Biden administration, which aimed to enhance enforcement, particularly against wealthy taxpayers. However, the current downsizing aligns with a broader governmental restructuring initiative led by the "Department of Government Efficiency," spearheaded by deputies aligned with Elon Musk’s vision for streamlined operations.Overview of IRS Personnel Reductions - The layoffs encompass a diverse range of roles within the IRS, including revenue agents, customer service employees, independent specialists handling tax dispute appeals, and IT personnel. This move has sent ripples through Washington, with numerous reports surfacing about potential service disruptions, data security challenges, and a subsequent impact on taxpayer experiences. Especially concerning are those awaiting their tax refunds, as potential delays can affect financial planning for households nationwide.IRS's Strategic Position - Despite these staffing changes, the IRS affirms its commitment to ensuring a successful tax filing season, in adherence to the executive orders while minimizing disruptions. Official communications from the agency suggest that efforts are underway to manage resources efficiently and uphold service standards. However, this is an evolving situation with ongoing litigation and potential policy changes looming, possibly altering the current course of operations.Data Security Measures - For those concerned about data security amidst these changes, the IRS maintains stringent protocols to safeguard sensitive taxpayer information. These protocols are applicable to all parties with data access, regardless of their employment status with the IRS, thereby upholding the integrity and confidentiality of taxpayer information.Managing Expectations: Refund Processing - Taxpayers concerned about potential delays in refund processing can utilize the "Where's My Refund?" tool for real-time status updates, typically available 48 hours post e-filing. Refunds from paper or amended returns may take longer to reflect in the system and can extend up to 16 weeks for processing. For amended returns, taxpayers can check the "Where's My Amended Return?" tool for updates.Under ordinary circumstances, refund processing timelines are as follows: