Frequently Asked Questions

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Sirrom Tax chooses not to provide BOI services BOI services are out of our scope and the client has sole responsibility for compliance.

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Effective January 1, 2024, a new reporting requirement goes into effect that will require millions of small businesses to file a Beneficial Ownership Information (BOI) Report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). 

Congress imposed this requirement in a statute called the Corporate Transparency Act (CTA), with FinCEN issuing the regulation providing the details on who must file a report, when it has to be filed, and what information has to be reported. Every small business owner needs to know about this new reporting requirement as non-compliance can result in severe penalties. 

The CTA requires so called “reporting companies” to file reports with FinCEN identifying the company’s beneficial owners and certain other information. A reporting company is defined to include most entities formed under state law, like LLCs, LLPs, corporations, and others.

Beneficial ownership generally means any of the following: people with substantial control; people with ownership interests, whether indirect or direct, equal to at least 25% of the company’s equity interests; and company applicants.

There are numerous exemptions from the definition of “reporting company.” Below is a list of some of the more notable exemptions:

• Banks, bank holding companies, credit unions, governmental entities, publicly traded companies, insurance companies, public accounting firms, tax-exempt entities.
• So called “Large operating companies” that have 1) a physical office in US, 2) more than 20 U.S. based FT employees, and 3) more than $5M of gross receipts reported on prior federal tax return.

Under current proposed regulations, existing reporting companies have between January 1, 2024, and January 1, 2025 to file with FinCEN, while reporting companies formed on or after January 1, 2024 and before January 1, 2025 must file within 90 days of formation. Entities formed after January 1, 2025, must file within 30 days of formation. Newly formed companies must coordinate with their legal and tax advisors to ensure the proper reporting is completed within the required timeline. 

The initial Beneficial Ownership Information (BOI) report and all updates and corrections will be filed electronically with FinCEN through a system that will be available via FinCEN’s website. There is no fee for filing the reports.

Updated reports are due within 30 calendar days after a change occurs.

Failure to comply with the CTA can result in a $500-per-day penalty (up to $10,000) and possible criminal penalties.

There is no fee for submitting your BOI report to FinCEN.

Access FinCEN’s website for information about BOI reporting.

Does your accountant return your calls? Do you feel comfortable asking them a question? Do you feel heard? With the right accountant, the answers should be a resounding "Yes!"

Additional Information

The fastest way to get your refund is by filing electronically with direct deposit and avoiding a paper tax return.

Here are other key dates during tax-filing season you should know.

*  Late January 2026 – The estimated launch of tax season 2025. 

*  January 31, 2026 – Business and companies must provide W-2 forms and certain 1099 forms to employees, either electronically or by mail. Reach out to your employer if you don't have your forms by early February.

*  Jan. 15, 2026 – Fourth quarter estimated tax payments due for 2025 for self-employed individuals or those with other income without tax withholding.

*  Feb. 17, 2026 – Deadline to reclaim your exemption from withholding. This applies if you claim an exemption from your employer withholding taxes from your paycheck on your Form W-4. To remain exempt from withholding, you must give your employer a new Form W-4 by this date every year.

*  April 1, 2026 – Due date to take the 2025 required minimum distribution from your retirement account if you turned 73 during the previous year (2025).

• April 15, 2026:
  • Tax Day tax filing deadline: The deadline to file or e-file your individual federal income tax return.
  • Deadline for most state tax returns, though there are some exceptions for certain states.
  • Deadline to request a tax extension by filing Form 4868 and to pay any taxes due from tax year 2025 (even if you are requesting an extension).

BUSINESS TAX DEADLINES

*  Jan. 15, 2026 – Fourth quarter estimated tax payments due for 2025.

*   March 16, 2026: Taxes due for partnerships, S corporations, or multi-member LLCs taxed as partnerships. This is the due date for calendar year business filers. If your business uses a fiscal year instead, your tax due date is the 15th day of the third month after the close of your tax year. For example, if your business’s fiscal year is June 1 to May 31, your business tax return due date would be Aug. 15 — three months and 15 days after May 31.

Deadline to request a tax extension for partnerships, S corps, and LLCs taxed as partnerships.

Deadline to file Form 2553 to switch your business election to an S Corp for tax year 2026.

**If you’d like a complete picture of all the 2026 tax calendar due dates, check out IRS Publication 509**

Taxpayers have two options when completing a tax return, take the standard deduction or itemize their deductions. Most taxpayers use the option that gives them the lowest overall tax.

Due to all the tax law changes in the recent years, including increases to the standard deduction, people who itemized in the past might want to switch to the standard deduction.

Here are some details about the two options.

The standard deduction amount increases slightly every year and varies by filing status. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction. 

The standard deduction amount increases slightly every year and varies by filing status. The standard deduction amount depends on the taxpayer's filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don't itemize deductions are entitled to a higher standard deduction.

Most filers who use Form 1040 can find their standard deduction on the first page of the form. The standard deduction for most filers of Form 1040-SR, U.S. Tax Return for Seniors, is on page 4 of that form.

• Unreimbursed employee expenses: A number of employees’ business expenses that weren’t reimbursed by their employers — like classes and seminars — are no longer deductible.
• Moving expenses: Workers moving for a new job were once able to deduct related expenses. That has been wiped away, except for members of the military.
• Tax preparation fees: If you itemized, you could typically deduct the amount your tax preparer charged or similar tax-related expenses, like software bought to file electronically. This is no longer possible, unless you are self-employed.
• Interest on home equity loans or lines of credit are now only deductible if the debt is used to “buy, build or substantially improve” the home that secures the loan. You can no longer deduct the interest if you pay off credit card debt, for example.