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Chances are, like me, you’re still recovering from Thanksgiving week—I love the chaos, but it can be tiring.

That’s why this edition of the newsletter is a little lean – it’s our mini edition for the holidays. There was too much good to skip completely, but I know there’s still football to watch and leftover pie to eat. So here is, literally, the skinny.

First of all, Christmas came early for some businesses and taxpayers this year. The IRS has announced that they are coming (again) delay the new $600 Form 1099-K reporting threshold (☆) for third party organizations. Under the latest guidance, third-party settlement organization reporting will only be required if the taxpayer receives over $5,000, regardless of the number of transactions in 2024. The dollar value will scale to $2,500 for transactions in 2025 before reaching the $600 threshold in 2026 and beyond.

That should mean you won’t get a Form 1099-K unless you meet the existing transaction threshold for 2024 — an exception exists for taxpayers subject to backup withholding. However, it’s worth noting that it’s not unlikely that some companies for Form 1099-K reporting thresholds may still send the form for amounts over $600 when year-end forms are sent out in January 2025 – there’s no need to panic if you receive a form. as it does not change the tax treatment.

And a little tidbit: The IRS closes online applications for new Employer Identification Numbers (EINs) every year for “annual maintenance.” Usually this starts around December 20th and lasts until the first working day of January. How to get an EIN and what to do if you need one before the end of the year during the online blackout period (hint: you’re old school).

Speaking of the end of the year, don’t forget those beneficial ownership (BOI) applications. A reporting company that was created or registered to do business before 1 January 2024 has until 1 January 2025, to submit their first report (☆). This applies even if the company was created before 2024. Failure to report on time can lead to penalties.

The end of the year is also a good time for reconsider possibilities for tax planning, charitable contributions and pension contributions – as well as check your social security benefits and preparing for expected changes to student loan forgiveness and refund.

But don’t rush into anything without considering the big picture—for example, it might be a good idea to prepay income taxes on a retirement account by funding a Roth. Or it could be a really bad idea. Think before you pull the trigger (☆).

There is still so much that can happen in the next few weeks – and 2025 will be here before you know it.

enjoy the weekend,

Kelly Phillips Erb (Senior Writer, Tax)

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Statistics, charts and maps (oh my!)

Tuesday is Giving Tuesday. And charities hope Americans will once again dig deep. Traditionally we do – according to the latest Report to the USIn 2023, Americans gave $557.16 billion to charity (which is more than $1.52 billion per day). The most dollars went to religious charities, with human services and education rounding out the top three.

Most of these donors were individual donors.

A deeper dive

Supreme Court has agreed to hear (☆) consolidated cases to resolve a circuit split focused on whether Congress illegally delegated the power to tax to the Federal Communications Commission (FCC), which then delegated its power to a private corporation.

The legal challenge focuses on the FCC’s Universal Service Fund, updated as part of the Telecommunications Act of 1996. The USF was supposed to subsidize telephone service to low-income households and high-cost areas, including service to hospitals, schools and libraries. In 2011, the fund was expanded to include broadband services – high-speed internet. The fund does not rely on money collected from income taxes or appropriated by Congress but from a specific fee on US telephone providers.

One group filed suit, claiming that Congress had unconstitutionally delegated rulemaking power to the FCC and that the Commission had unconstitutionally delegated power to the Universal Service Administrative Company (USAC) in violation of the nondelegation doctrine.

The Fifth Circuit held that “the combination of Congress’s sweeping delegation to the FCC and the FCC’s unauthorized subdelegation to (the company)” was unconstitutional. It included a finding that the FCC “may have impermissibly delegated taxing authority” to USAC. But the Sixth and Eleventh Circuits split, landing the case in the Supreme Court.

Tax reporting and deadlines

January 1, 2025. Due date for reporting companies created or registered to do business in the United States before January 1, 2024, to file Beneficial Ownership Information (BOI) reports with FinCEN.

February 3, 2025. Due dates for individuals and businesses affected by hurricanes Beryl and Debby (more info here (☆) and here (☆)), those i South Dakota hit by severe storms, high winds and flooding beginning June 16, 2024, Puerto Rico taxpayers suffered Tropical Storm Ernestoand the individuals and businesses in Connecticut and New York affected by severe storms and floods from downpours that began on August 18, 2024.

May 1, 2025. Due dates for individuals and businesses throughout the states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia affected by severe storms and flooding from Hurricane Helene (☆) and Hurricane Milton.

30 September 2025. Due dates for individuals and companies is affected of recent terrorist attacks in Israel.

Tax conferences and events

12–14 December 2024. ABA Section on Tax, Criminal Tax Fraud and Tax Controversy Conference 2024Las Vegas, NV. CLE available. Registration is required.

16-17 December 2024. NYU 43rd Institute on State and Local Taxation, Westin New York at Times Square, New York, NY. CLE and CPE available. Registration is requiredvirtual option available.

19–25 February 2025. ABA Tax Section 2025 Tax meeting after the half-year end. JW Marriott Los Angeles LA Registration is required.

21–23 July 2025. National Association of Tax Professionals Taxposium 2025, Caesars Palace, Las Vegas. Registration is required.

Trivia

According to the National Retail Federation, how many in 5 holiday shoppers in recent years have started browsing and buying before November?

(A) One

(B) Two

(C) Three

(D) Four

You will find the answer at the bottom of this newsletter.

Positions and guidance

The IRS has published Internal Revenue Bulletin 2024-48.

The IRS has published its Management quarterly updatea supplemental document to the IRS Agency Financial Report to provide insight into IRS management and operational challenges. The fiscal year 2024 quarter 4 update includes a table detailing the IRS’s Inflation Reduction Act for 2022 spending.

The Public Company Accounting Oversight Board (PCAOB) published additional resources for implementing QC 1000, A Firm’s System of Quality Control. All firms registered with the PCAOB, including those that do not examine issuers or SEC-registered broker-dealers, are affected by QC 1000, but not all requirements of QC 1000 apply to all firms. Personnel guidance provides an overview of the requirements of QC 1000 and staff guidance for companies on how to comply with the standard, while AS 2901 Personnel guidance addresses the handling of deficiencies in the assignment in an audit report.

Remarkable

White and case announced to Narissa Lyngen has been appointed assistant in the tax practice of the agency. Based in New York, her practice focuses on advising clients in various sectors on cross-border and domestic taxation related to mergers and acquisitions, securities offerings, securitizations and financing transactions, as well as intellectual property matters, tax-deferred reorganizations, restructurings, corporate inversions and tax treaties.

Vinson & Elkins announced to Lauren Meyers, Brent Schoradtand Curt Wimberly has been promoted to attorney at the firm. Meyers advises partnerships, corporations and individuals on federal tax planning matters. Schoradt represents financial institutions, project sponsors and developers in the financing, development and sale of large-scale wind and solar projects, with a focus on tax financing. Wimberly’s practice focuses on the US federal income tax aspects of domestic and international transactions.

President Elect Donald Trump have is named hedge fund manager Scott Bessent for the role of financial secretary.

The ABA Tax Section announced the launch of a new pro bono project, the Alaska VITA Project, from February 21 to March 2, 2025. After a successful pilot with Alaska Business Development Corporation (ABDC) during the winter of 2024, the Tax Section will host six volunteers to travel to Alaska and prepare tax returns for taxpayers living in remote parts of the state. This is a unique pro bono opportunity that offers tax return preparation and experiential learning in communities far off the usual Alaska travel path.

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In case you missed it

Here’s what readers clicked through most often last week:

You will find the entire newsletter here.

Trivia answers

The answer is (B) two.

In recent years, approx two out of five holiday shopperss have started browsing and buying before November. The main reasons consumers start shopping in advance are to spread out their budget, avoid the stress of last-minute shopping and avoid congestion.

Feedback

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