Wednesday, December 27, 2023
Happy Holidays to all of Our Wonderful Clients!
We are reaching out regarding some new developments in our practice and compliance requirements you need to be aware of.
2024 1099-K Threshold is lowering from $20,000 to $5,000.
Beneficial Ownership Reporting Requirements
Corporate Compliance monitoring for all of our Corporations and LLC’s
Upcoming 2024 filing Season Updates
Full Service Model
2024 1099-K Threshold is lowering from $20,000 to $5,000.
Beginning in 2024 the IRS is phasing in a reduced reporting threshold for 1099-K's. If you receive Third Party Network Payments exceeding $5,000 you will receive a 1099 at the end of 2024. This 1099 will be for any payments received from a payment App such as Venmo, CashApp, ApplePay, GooglePay, or AirBnb,). Please reach out to us with questions, but the bottom line is next year, you will be required to report this as income on your tax return, and then exclude any personal transactions.
Beneficial Ownership Reporting Requirements
Beginning January 1, 2024 FinCEN (The Financial Crimes and Reporting Network) is requiring many companies to report information to the U.S. government about who ultimately owns and controls the company. There are hefty penalties for not making these reports in a timely fashion. Most LLCs and Corporations in existence prior to December 31, 2023 will be required to report beneficial ownership by December 31, 2024. If a new entity is formed after January 1, 2024, then reporting must be completed within 90 days of company formation. If a new entity is formed after January 1, 2025, then reporting must be completed within 30 days of company formation. FinCEN will begin accepting these reports 01/01/2024 at https://www.fincen.gov/boi
Corporate Compliance monitoring for all of our Corporations and LLC's
As of January 1, 2024 we will be adding corporate compliance monitoring services for all of our clients with a retainer agreement. This is an added value service and no action is required on your part.
This monitoring consists of:
Your entity status with the Secretary of State where your company is doing business.
Your entity Beneficial Ownership Reporting Requirements
Your entity Franchise Tax Compliance
Upcoming 2024 filing Season Updates
For a summary of key tax law changes affecting your return for 2023, please refer to this excellent article.
Streamline Process for Communication and Data Collection:
Aurora Consulting Group is implementing a streamlined process for client interaction, communication, and document sharing through our new platform Karbon. This new experience will give our clients the option, but not the requirement to create a portal. Going forward, communication and document sharing can happen seamlessly without logging in. We will roll out this platform in January. No action is required on your part.
Team of Three Approach:
We have organized our staff for more efficiency and to better serve our clients using teams. If you are needing services in the following areas, please reach out these team leads:
Tax - Mary West (mary@auroracgllc.com)
Accounting - Andrea Dunigan (andrea@auroracgllc.com)
Advisory and Coaching - Sandra Koch (sandra@auroracgllc.com)
You will continue to reach out to Paige Hawkins (paige@auroracgllc.com) regarding all of your administrative and billing questions
Pricing:
Legacy clients who do not have a full service retainer agreement will be billed for tax return work on a per form basis through May 31, 2024. Please refer to your retainer agreement to see if your taxes are included.
After May 31, 2024, we will be transitioning all clients to a monthly payment model that will include tax advisory and planning services. (Please see full-service model below for more information)
If you are a tax only client and bookkeeping work is necessary in order to complete your tax return, it will be billed at our standard bookkeeping rates of $85/hr.
Organizers:
We will be sending out tax organizers near the end of January. We will prepare taxes on a first come, first serve basis. Once your organizer is complete and all documents are uploaded we will start your return. Our expected turnaround times are two weeks from the date we receive all tax documents and your completed organizer. All clients must complete an organizer to ensure we can update our database with any changes noted on the organizer such as address, number of dependents, filing status, etc.
Tax Appointments:
We are a paperless office and are now operating on a fully remote basis. If you would like a 15 minute tax review meeting, please reach out to Paige at paige@auroracgllc.com in order to schedule a video conference with Mary. Meetings beyond 15 minutes will be billed accordingly.
Full-Service Model
We are shifting to a Full-Service Model. The reason we are making this change is to create a year-round relationship with all of our clients. The Full-Service Model has multiple tiers based on your individual needs. Paige will reach out in May with the service options available.
In Closing
The Aurora Team is enthusiastic and eager to serve you in 2024. We have worked hard in 2023 to improve the technology tools as well as continue the education and development of our team. These changes are creating an improved client experience, adding efficiencies, and are allowing us to spend more time focusing on our relationship with you. We are extremely grateful to have the opportunity to work with so many strong, smart and driven entrepreneurs. Please reach out to us if you need anything and we hope you all have a wonderful end to this year.
Sincerely,
The Aurora Team
ATTACHMENTS:
Tax Changes and Key Amounts for the 2024 Tax Year:
Karbon Client Portal