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FINCEN FILING: Beginning this year, most small companies have a NEW small business filing requirement with FinCEN call the Business Ownership Information Report, that can be time confusing. Failure to file or erroneous filings can result in jail time and up to $10,000 in fines. Our team can handle the filing for you with minimal effort on your end. To get started, schedule a time to speak with us here.

Tax Policy/News:

September 11: November’s election is shaping up to be critical to tax planning

As the November election approaches, tax professionals are closely watching the potential outcomes, which could have a significant impact on tax policy and planning. 

Key issues at stake include the future of tax rates, corporate taxes, and capital gains, with both parties proposing divergent paths. Democrats are likely to push for increased taxes on the wealthy and corporations to fund social programs, while Republicans may seek to extend tax cuts enacted during the Trump administration. 

The election's outcome could influence critical decisions for taxpayers and advisors, especially regarding estate planning, retirement contributions, and income tax strategies. 

Uncertainty surrounding tax reform adds urgency for businesses and individuals to consider proactive planning ahead of potential changes in 2025, when key provisions of the Tax Cuts and Jobs Act are set to expire.

September 10: New BOI reporting guidance issued for short-lived entities and foreign companies

The Treasury Department has issued updated guidance on beneficial ownership information (BOI) reporting, specifically targeting short-lived entities and foreign companies. 

The guidance, under the Corporate Transparency Act, clarifies reporting requirements for entities that have a brief operational lifespan or limited U.S. presence. 

This aims to reduce loopholes that could allow such entities to evade transparency obligations, often used to conceal illicit activities like money laundering. The update also focuses on ensuring foreign companies comply with the reporting rules, balancing national security concerns with the need to maintain a business-friendly environment. 

The new guidance is part of broader efforts to strengthen financial transparency and combat corporate anonymity, with implications for compliance strategies and legal structures. Companies that fall under these categories are urged to review their reporting obligations to avoid penalties.

Economic News/Policy:

September 17: Child Tax Credit: Who’s filing?

The Child Tax Credit (CTC) continues to be a vital source of financial relief for many American families, but recent data show a shift in who is filing for it. 

While the credit is designed to assist low- and middle-income families, an increasing number of higher-income households are benefiting from it, particularly due to expanded eligibility criteria introduced during the pandemic. 

The credit’s phaseout thresholds have allowed more affluent families to qualify, blurring the original intent of targeting lower-income groups. Additionally, discrepancies in filing data reveal that many eligible families are not claiming the credit, often due to a lack of awareness or filing complications. 

Tax preparers and advisors play a crucial role in educating clients about their eligibility and ensuring that the credit reaches those who need it most. As policymakers debate the future of the CTC, its impact on diverse income brackets continues to shape discussions about tax equity and economic support for families.

 September 16: Divided House GOP struggles to avoid government shutdown

House Republicans remain divided as they struggle to reach a consensus on funding the government before the looming deadline to avoid a shutdown. 

The internal conflict within the GOP has been amplified by the demands of the conservative Freedom Caucus, which is pushing for deeper spending cuts and policy concessions, particularly on immigration and social programs. 

Moderate Republicans are advocating for a more pragmatic approach, seeking to avert a shutdown that could harm the party politically. 

With time running out, Speaker Kevin McCarthy faces significant pressure to unite the fractured party while balancing the interests of both factions. As the debate continues, the potential for a government shutdown grows, posing risks to various federal operations and economic stability.

Technology:

September 12: Top AI leaders meet with White House officials

Leading figures from the artificial intelligence (AI) industry gathered with White House officials to discuss emerging concerns around AI safety, innovation, and regulation. 

The meeting included representatives from major tech companies such as Google, Microsoft, and OpenAI, alongside top government officials. Key topics included the need for responsible AI development, safeguards against misuse, and AI’s potential to reshape industries and national security. 

The Biden administration is pushing for more comprehensive policies to ensure that AI technologies are developed in a manner that protects public safety while fostering economic growth. Industry leaders voiced both optimism and caution, emphasizing the importance of balancing innovation with ethical considerations. 

This meeting follows a broader effort by the White House to engage with stakeholders on the future implications of AI as the technology continues to evolve rapidly.

September 10: OpenAI’s ‘Strawberry’ AI: Is this the reasoning breakthrough we’ve been waiting for?

OpenAI’s latest AI model, nicknamed "Strawberry," represents a potential leap forward in reasoning capabilities, sparking excitement in the AI community. 

The model is designed to enhance artificial general intelligence (AGI) by demonstrating superior problem-solving and logic reasoning, addressing a key limitation in current AI systems. 

Unlike prior models that excelled in pattern recognition but struggled with deeper reasoning tasks, Strawberry aims to mimic human-like cognitive processes, making strides in understanding abstract concepts and drawing inferences. 

While early testing suggests improvements, questions remain about its broader applications and whether it can consistently perform across a range of complex scenarios. 

The technology is being closely monitored by researchers and tech leaders for its implications on fields such as robotics, automation, and cognitive computing. If successful, Strawberry could represent a significant milestone in the development of AGI, potentially transforming industries reliant on advanced decision-making.

Energy and Environmental Policy/News:

September 16: How geothermal energy could become oil and gas companies’ second act

As the world transitions towards renewable energy, oil and gas companies are looking to geothermal energy as a viable avenue to leverage their existing expertise.

Geothermal, which harnesses heat from beneath the Earth’s surface, is gaining attention due to its potential to provide constant, renewable power. 

Oil and gas firms already possess much of the infrastructure and technical knowledge needed for geothermal operations, such as drilling capabilities and subsurface expertise, positioning them well to pivot. 

However, challenges remain, including the high upfront costs of geothermal projects and the technological hurdles in scaling this energy source. 

Industry leaders believe that increased collaboration and technological innovations can reduce these barriers, with government policy and funding playing a critical role in accelerating the transition.

In recent summits, industry executives discussed strategies for making geothermal a key part of the energy future, aligning it with their carbon reduction goals while maintaining profitability.

September 15: Entrepreneur tackles EV charger reliability, linking air pollution to health

Kameale Terry, co-founder of ChargerHelp!, recognized early on that the rapid expansion of electric vehicle (EV) charging infrastructure in the U.S. would require a specialized workforce to maintain it. 

After working at EV Connect and witnessing the issues with charger reliability firsthand, she launched ChargerHelp! in 2020 to train technicians for repairing EV chargers, aiming to reduce downtime and improve the charging experience. 

Terry’s personal connection to air pollution, having grown up near three major highways in South Central Los Angeles, coupled with her mother’s battle with cancer, fueled her passion for clean energy and equitable job creation. 

ChargerHelp! has now expanded to 17 states, addressing the significant reliability issues that plague public charging stations, which can undermine consumer trust in EV adoption. With the Biden administration targeting 50% of new cars being electric by 2030, maintaining a reliable charging infrastructure is crucial to achieving this goal.

September 12: Democrats propose fossil fuel industry pay for climate change

Democratic lawmakers have introduced a proposal aimed at holding the fossil fuel industry financially accountable for the damages caused by climate change. 

The bill, supported by progressive members of Congress, seeks to impose a fee on the industry based on their carbon emissions, with revenues directed toward climate resilience and mitigation efforts. 

Proponents argue that the fossil fuel sector, responsible for a significant share of global emissions, should bear the costs of the environmental impacts, including extreme weather events and rising sea levels. 

Opponents, primarily from the Republican side, argue that such measures would raise energy costs for consumers and hinder economic growth. This initiative aligns with broader efforts to address climate change by leveraging financial penalties to incentivize a shift toward cleaner energy alternatives. 

The bill’s prospects in a divided Congress remain uncertain, but it has reignited debate over the role of corporate responsibility in mitigating climate risks.

For Fun:

September 16: Pregnancy causes lasting changes in the brain, new study shows

A recent study using MRI scans has revealed that pregnancy causes significant, lasting changes in a woman's brain, including increased gray matter volume in areas linked to social cognition and caregiving. 

Researchers suggest that these alterations may enhance maternal instincts and emotional bonding with the child, with some changes persisting for at least six years post-pregnancy. 

The study builds on previous findings about the "pregnancy brain" phenomenon, where women often report memory lapses or cognitive shifts during and after pregnancy. 

While some view these changes as temporary cognitive decline, scientists are increasingly seeing them as adaptations that support motherhood. 

This research adds to the growing understanding of how pregnancy affects not just the body but also the brain, with implications for maternal mental health and postpartum care.

September 12: Ig Nobel prize goes to team who found mammals can breathe through anuses

The 2024 Ig Nobel Prize, which celebrates unusual scientific discoveries, was awarded to a research team that found certain mammals can breathe through their anuses in emergency situations. 

The study explored how pigs and mice, when deprived of oxygen, could absorb oxygen through the intestines, highlighting potential medical applications for humans. This discovery could one day influence new treatments for patients with severe respiratory failure. 

The Ig Nobel prizes, which honor scientific achievements that "make people laugh, then think," also recognized other quirky studies, such as research on the effects of boredom on workplace productivity. 

The awards, a parody of the Nobel Prize, draw attention to both the humor and value of unexpected scientific inquiry.

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