DHW Certified Public Accountants and Strategic Advisors

02/25/2025

DHW is setup and ready to see some clients at the NCHCFA trade show in Greensboro today! If you're at the convention, please stop by and say hello!

02/20/2025

BREAKING NEWS: There is a federal information report required called the Beneficial Ownership Information Report (BOIR), which is filed with the Financial Crimes Enforcement Network (FinCen). This reporting requirement was temporarily suspended due to ongoing litigation, which has now been resolved. As such, the reporting requirement is now back in effect.

Both domestic and foreign entities, registered to do business in the US, need to determine if they are required to file. The purpose of this report is to make it harder for financial crimes to go undetected.

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://boiefiling.fincen.gov). The deadline for filing the BOIR is as follows:
1. A currently established entity now has until March 21, 2025, to file its initial BOI report.
2. A newly established entity has 30 days from the date it is established, to file.

There is no annual reporting requirement. However, reporting entities must file an initial BOI report, and updated or corrected BOI reports, as needed.

For everyone who is a beneficial owner, a company will have to provide:
1. The individual’s name
2. Date of birth
3. Residential address
4. An identifying number from an acceptable identification document such as a passport or U.S. driver’s license
5. Image of identification used

Penalties for failure to file can be up to $500 per day; with potential criminal penalties if failure to file is deemed to be willful.

For additional information please see the attached article, or the compliance guide that can be found at https://fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf.

02/20/2025

Charitable fundraisers that feature games of chance (everything from bingo and raffles to baccarat and roulette) help nonprofits raise millions of dollars every year. However, hosting gambling events can trigger certain tax-related responsibilities. If you regularly host gaming fundraisers, you may be subject to unrelated business income tax. And wagering excise and occupational taxes could apply in some circumstances. You also may need to report participants’ winnings to the IRS or withhold tax, depending on factors such as the type of game and amount won. Contact us for more information.

02/17/2025

DHW will be open normal hours today. Have a great Presidents' Day!

02/14/2025

Wishing you a heart filled with love on this special day!

02/11/2025

When deciding on the best business structure, one option is a C corporation. There are pros and cons to doing business this way. For example, a C corporation allows a business to be taxed separately from you as the owner. The corporate tax rate is currently 21%, which is lower than the highest 37% noncorporate tax rate. One potential disadvantage: Earnings can be subject to double tax, once at the corporate level and again when distributed to you. One big advantage is the liability protection a C corporation offers. Shareholders aren’t personally liable for the corporation’s debts and liabilities. So personal assets are generally protected if the corporation faces legal issues or bankruptcy.

02/05/2025

The IRS will start the 2025 filing season for individual income tax returns on Jan. 27. Even if you usually don’t file until April, you may want to file early. It can potentially protect you from tax identity theft. In this crime, a thief uses your personal information to file a fraudulent return early in the filing season and claim a bogus refund. Another benefit of early filing is that if you’re getting a refund, you’ll get it faster. This year, the filing deadline to submit 2024 returns, file for an extension and pay tax owed is generally April 15. If you’re requesting an extension, you’ll have until Oct. 15 to file. Contact us for an appointment to prepare your return.

02/03/2025

Welcome to the DHW Team, Andrew, Nick, & Joseph!

02/02/2025

Punxsutawney Phil sees his shadow, predicts more winter

Watch live coverage of Groundhog Day 2025 as Punxsutawney Phil makes his prediction at Gobbler's K**b.

01/30/2025

BOI Reporting Still on Hold Despite Supreme Court Ruling: Even though the U.S. Supreme Court stopped a federal district court's order (McHenry v. Texas Top Cop Shop) barring enforcement of the Corporate Transparency Act (CTA), beneficial ownership information (BOI) reporting is still on hold due to another second district court injunction currently in place (Smith v. U.S. Department of the Treasury). If the Smith case is appealed to the Supreme Court, the stay would likely be lifted, however, some believe that the new administration will not appeal the case in an effort to keep the CTA on hold indefinitely. The Financial Crimes Enforcement Network (FinCEN) will continue to accept BOI reports submitted on a voluntary basis. There is much uncertainty regarding the fate of the CTA, but having the necessary information ready to go is a good idea.

01/29/2025

Congratulations to these 5 employees on their recent promotions! Keep up the great work!

01/28/2025

Business owners may travel to visit customers, attend conferences, check on vendors and for other purposes. Managing tax-deductible travel costs can help ensure compliance and maximize tax savings. Assuming you meet the tax law requirements, there are a number of deductible business travel expenses. They include: air, train or bus fare to the destination; baggage fees; car rental expenses or the cost of using your vehicle; tolls; parking; transportation at the destination (such as taxis); lodging; tips and dry cleaning. Meal expenses are generally 50% deductible. The business travel deduction rules can be complicated. If you’re uncertain about the tax treatment of your expenses, contact us.

01/23/2025

Are you age 70½ or older and want to give to charity? You can make cash donations directly from your IRA to IRS-approved charities free of federal income tax. These are called qualified charitable distributions (QCDs). In contrast, other traditional IRA distributions are wholly or partially taxable. Unlike regular charitable donations, you can’t claim itemized deductions for QCDs. But they aren’t included in your adjusted gross income (AGI). That lowers the odds that you’ll be affected by unfavorable AGI-based rules or hit with the 3.8% net investment income tax. The annual QCD limit is now adjusted for inflation. In 2024, the limit is $105,000. In 2025, it will increase to $108,000.

01/20/2025

Today, we honor the legacy of Dr. Martin Luther King Jr. His vision of equality, justice, and unity continues to inspire us all. Let's reflect on his values and commit to creating a future where everyone is treated with dignity and respect.

01/17/2025

Medicare Part B medical insurance mainly covers doctors’ visits and outpatient services. Eligible individuals pay monthly premiums for the benefit. The premiums for the current year depend on the modified adjusted gross income (MAGI) reported on your Form 1040 for two years earlier. For 2025, most covered persons will pay the base monthly Part B premium of $185. Higher-income individuals pay a surcharge on top of that. For 2025, a surcharge applies if you: 1) filed unmarried for 2023 and reported MAGI above $106,000 that year or 2) filed jointly for 2023 and reported MAGI above $212,000 that year. For 2025, Part B monthly premiums and surcharges can be found on this web page.

01/15/2025

Some of our Morganton employees recently participated in the annual Burke Giving Day, volunteering at the Toy Store. Two groups of employees volunteered over two days, some of whom are pictured here. DHW is happy to support this great cause!

01/15/2025

Two tax breaks help eligible parents offset the costs of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each eligible child. This is up from $16,810 in 2024. A credit is a dollar-for-dollar reduction of tax. Also, employees may be able to exclude from gross income up to $17,280 in 2025 ($16,810 in 2024) of qualified expenses paid by an employer in an adoption assistance program. The credit and the exclusion are phased out if the parents’ income exceeds certain limits. Parents can claim both a credit and an exclusion for the costs of adopting a child but not for the same expenses.

01/09/2025

When new nonprofits apply to the IRS for approval to be 501(c)(3) tax-exempt organizations, which form should they use, Form 1023 or 1023-EZ? The first is much longer and more costly to file. However, not all nonprofits qualify to use the shorter, less expensive-to-file Form 1023-EZ. You first must answer all questions on the IRS’s 1023-EZ eligibility worksheet. In general, eligible nonprofits have assets valued at no more than $250,000 and don’t expect to have asset gross receipts of more than $50,000 during the three-year period following the filing. But additional limits apply. Contact us for help selecting and filing a form.