Section 199A Regulations Released

The IRS has released the long hoped for final regulations for the deduction under Section 199A. While most of the regulations were pretty much as expected, there are some surprises allowing taxpayers more freedom in how they calculate their maximum deduction under the Code.

However, not all of the news is good news and the broad anti abuse rules threaten to sweep up well meaning tax payers and deprive them of their full deduction for missing arbitrary deadlines. Even if you are not the type to engage in tax planning to lower your taxes, the new rules are poised to punish taxpayers who do not do minimal planning by sharply increasing their taxes.

As always, call or email P. Christopher Wegner at 239.499.9200 or cwegner@wegnerlawfirm.com today for a free consultation as to how Section 199A will impact you.

IRS to collect taxes and issue refunds during shut down.

As the government shutdown enters its third week, agencies are scrambling to determine what the shutdown means to them. For the Internal Revenue Service (“IRS”), there was never any question that they would continue to collect taxes regardless of what happened.

Initially the concern was whether the agency could process refunds during the Washington D.C. imposed hiatus.  However, the White House issued guidance on Monday that will permit the executive agency to process and mail tax refunds while the government is closed.

New Business Owner Beware!

If you just formed a new business in Florida, you will start receiving all types of unsolicited mail. Some of the mail will look official and display names such as “Florida Corporation Register Inc.” or “Florida Annual Reports LLC.” These letters almost always start with some form of warning or call to action in big bold or red letters instructing you to do any of a number of things supposedly required to keep your new company open.

The letters will then include some sort of form asking for information and telling you to send check or money to an address in Tallahassee. Everything from the envelope to the print is made to appear official.

The problem, they are not official. Countless companies inundate new business owners with letters attempting to take money from an unsuspecting small business owner. Each company trying to take between $50 to $250 from the confused entrepreneur.

While some of these letters are very convincing, you may disregard any letters that you receive via the mail regarding a newly formed business. The State of Florida only contacts business regarding their state registration or annual report via email. Therefore, you can save a significant amount of frustration, uncertainty and money by throwing out any imposter asking for money via the postal service.

In addition, as we approach the new year and the limited liability companies, partnerships and corporations have to file their annual reports with the State of Florida, there is another scam business owners should know about. Almost everyone has seen a letter claiming the need to file corporate records with the state. The State of Florida does not require businesses to create or file any corporate or company minutes or other similar records.

Starting a new business can be scary and it is hard enough without con artist and scammers working hard to take advantage of you. Hopefully, this post will help Florida business owners avoid becoming prey to these scams.

If you are confused or concerned, you can always come to Wegner Law PLLC for help. Call 239.449.2900 or email cwegner@wegnerlawfirm.com for answers to all your questions.

Wegner Law PLLC closes $1.2 million capital raise for client

Wegner Law PLLC helped another client raise funds this week when P. Christopher Wegner closed on a $1.2 million capital raise. Chris has been working with the client for eight months from formation through today and assisted by: (1) drafting the operating agreement; (2) drafting employment agreements; (3) filing paperwork to convert from a Delaware limited liability company to a Delaware corporation; (4) drafting bylaws; (5) drafting shareholders’ agreements; (6) drafting convertible debt instruments for the offering and much more.

The client is currently in discussions to form a joint venture with a publicly traded power house in the client’s industry. Wegner Law PLLC is excited for the client and looks forward to doing many more great things in the future.

 

Florida Tangible Tax Return Exemption

As a general rule, in the State of Florida taxpayers must file tangible personal property tax returns with the state each tax year.[1] It is incumbent on the taxpayer to “disclose and claim any … exemptions from taxation to which the taxpayer may be entitled …”[2] Failure to do so may result in the taxpayer waiving his or her right to any exceptions for the relevant tax year.[3]

However, the exemption provided under §196.183 of the Florida Statutes for the first $25,000 of assessed tangible personal property value,[4] waives the general rule as it relates to the property exempted under that section.[5] Therefore, a taxpayer does not need to file an annual tangible personal property tax return with respect to personal property not exceeding $25,000 so long as the taxpayer filed an initial return claiming the exemption.[6]

A taxpayer must file an annual tangible personal property tax return when the taxpayer possess property with an assessed value in excess of the exemption amount and failure to make the initial filing required under the relevant section precludes the taxpayer from claiming the benefit of this exception from filing provision.

 

 

[1] § 196.021, Fla. Stat. (2018).

[2] Id.

[3] Id.

[4] § 196.183(1), Fla. Stat.

[5] Id. at (3).

[6] Id. (expressly providing an exemption from the filing requirements under the section).