WS CPAs and Consultants is dedicated to providing tax planning and preparation, payroll, bookkeeping, and more with personalized attention to individuals and small businesses. We deliver high-quality, timely tax and accounting services customized to each client’s needs.
We want to know about your family, your background, your goals, and your dreams. Long-term relationships are our foundation – call WS CPAs to schedule your appointment today!
As we approach the end of the year, Williams & Schiller begins to shift our focus to tax planning including our annual tax letter. The year 2023 presents unique financial challenges, with concerns such as inflation, market volatility, and geopolitical risks at the forefront of our minds. Rest assured, our dedicated and client-focused team is ready to assist you in navigating these challenges and securing your financial future.
Williams and Schiller, CPAs has continued to grow and invest in our firm, expertise, and technology infrastructure to better serve our clients. In early 2023, we welcomed another member to our professional staff, Amanda Simpson. Amanda is a tax associate in our Sandpoint office and has been working closely with partners and staff on a variety of projects.
Thank you for entrusting us with your financial well-being. We value our relationship and are committed to providing you with the highest level of service. Please continue reading for valuable year-end tax planning tips and other financial insights and reference material.
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First week of January, 2024 | Tax organizers will be out in the mail to all clients, or emailed if requested. |
January 16th, 2024 | Fourth Quarterly 2023 estimated tax payment due |
March 15th, 2024 |
Deadline for partnerships, multi-member LLCs, and S corporations without an extension |
April 1st, 2024 | Deadline to take first required minimum distributions (RMDs) from Traditional, SEP and SIMPLE IRAs, and former qualified employer sponsored retirement plans (QRP) if you reached age 73 in 2023 |
April 15th, 2024 |
Deadline for individuals, sole proprietorships, LLCs taxed as disregarded entities, and C Corporations Deadline to make 2023 contribution to traditional IRA, Roth IRA, Health Savings Account (HSA), or Education Savings Account (ESA |
June 17th, 2024 |
Second Quarterly 2024 estimated tax payment due Deadline for expat filing without an extension |
September 16th, 2024 |
Deadline for partnerships and S Corporations with extension Third Quarterly 2024 estimated tax payment due |
October 15th, 2024 |
Deadline for individuals, expats, sole proprietorships, C-corporations, and LLCs taxed as disregarded entities with extension Deadline to make 2023 contribution to SEP plan |
December 16th, 2024 | Fourth Quarterly 2024 payment due – C corporations only |
December 31st, 2024 |
Deadline for completion of gifts for the current calendar year (charitable or other) Deadline to take 2024 required minimum distributions (RMDs) from Traditional, SEP and SIMPLE IRAs, and former qualified employer sponsored retirement plans (QRP) if you reached age 72 before 2023 Deadline to complete a Roth IRA conversion Deadline to complete a 529 plan contribution |
The tax landscape in 2023 remains relatively stable, with no significant legislative changes. However, it’s important to consider the implications of the Inflation Reduction Act of 2022, which may have an indirect impact on some individuals. One item that was set to impact many clients in 2023, but has been delayed to 2024, is a change to 1099-K reporting requirements that will impact folks with small businesses or receiving payments from popular companies/apps like AirBnB, Venmo, CashApp, Etsy, etc. Read our blog post here to learn more about this and how it may impact you in future years.
KEY REMINDER: The Federal student loan interest and payment suspension has ended (Fall 2023). Payment requirements have resumed and you should again receive a form 1098-E that outlines interest paid. Please include with your tax paperwork!
As we navigate the year, it’s important to consider your unique financial situation and take advantage of available tax planning strategies. We’re here to help you make informed decisions.
Here are some actions individuals can take to reduce their 2023 tax burden:
Additionally, it’s essential to review your retirement plans annually, as well as to stay informed about digital currency tax implications, especially if you or your children hold digital assets.
Early planning can help you minimize your tax bill and secure your financial future. Please contact our office for a year-end review tailored to your specific needs.
For businesses, the Inflation Reduction Act of 2022 remains the most significant tax legislation impacting the tax landscape in 2023.
Key Reminder: The 100% deductibility of business meals expired at the end of 2022. Business meals are back down to 50% deductible for 2023.
Many businesses, yours included, have likely been inundated with ads for claiming Employee Retention Credit (ERC). To prevent abuse of the credit, the IRS is temporarily not accepting new applications for the credit until at least the end of the year. We will monitor updates with the IRS and help you appropriately navigate the ERC. If you have any questions about your business’ eligibility for the credit, please contact us.
Additionally, as mentioned in the individual side of this letter, a change to the 1099-K reporting requirement was set to take place this year. However, it was delayed until 2024 and the threshold amounts increase. When this does take place, it will result in far more 1099-K’s being issued. Be prepared for this, and bring those 1099-K’s in with your tax files. Read our blog post here to learn more about this and how it may impact you. This year, you will likely also be subject to new reporting called Beneficial Ownership Interest (BOI) through new legislation. More information on this is can be found below.
Business owners should consider strategies to reduce taxable income and maximize tax savings. Here are some key considerations for business tax planning:
As with individual tax planning, early planning in business tax strategies can lead to fewer surprises and better financial outcomes. contact our office to schedule a year-end review tailored to your business’s specific needs.
What is estate tax? Estate tax is a tax levied on the value of a person’s estate after they pass away. It is typically assessed on the total value of assets and property left behind, with certain exemptions and deductions. Estates of decedents who die during 2023 have a basic exclusion amount of $12,920,000 (25,840,000 for married U.S. residents or citizens). In 2024, that exemption will increase to $13,610,000 ($27,220,000 for married U.S. residents or citizens). This means that estates with a total value below this threshold are not subject to federal estate tax. The estate tax rate is 40% for any amount exceeding the exclusion above.
While not all taxpayers may need to do formal estate planning, as they fall below the levels outlined above, we strongly encourage all taxpayers to have a will in order. Please click here to read an article from earlier this year discussing the benefit of a will.
Without further congressional action, these higher limits will be cut in approximately in half, reverting to about $7 million per person and double for a married couple. Please click here to read more about the sunsetting of the estate tax limits.
Estate tax planning is crucial to ensure the smooth transfer of your assets to your heirs. Estate planning considerations may include:
– Updating your will and trusts to reflect changes in your assets and beneficiaries.
– Evaluating the use of lifetime gifts to reduce the size of your taxable estate.
– Exploring the benefits of a revocable living trust for asset distribution.
– Considering charitable bequests and their potential tax advantages.
– Reviewing your life insurance policies to ensure they align with your estate planning goals.
We recommend working with an experienced estate planning attorney to tailor a strategy that aligns with your unique situation and goals, and we would be happy to assist you in ensuring that you maximize the tax efficiency of these plans.
Thank you for your continued trust and partnership with WS CPAs and Consultants. We look forward to helping you navigate the challenges and opportunities of 2023 and moving into the future. If you have any questions or need further assistance, please don’t hesitate to contact our team.