Category: Tax

By Mark Puckett, CPA | Tax Principal 

The IRS reminds taxpayers affected by 2024 federally declared disasters that they automatically receive extended deadlines to file and pay 2024 federal income taxes. In most cases, the new deadline is May 1, 2025. Additional relief applies in select areas and for individuals impacted by international events. 

 

Key Highlights 

• May 1, 2025, is the new deadline for most affected taxpayers 

• Applies automatically—no need to request relief 

• Further extensions: Oct. 15 and Nov. 3 in certain states, Sept. 30 for international cases 

• Tax payments are still due by May 1, even if filing is delayed 

 

Who Qualifies for the May 1 Deadline? 

The May 1, 2025, deadline applies to taxpayers in areas covered by 2024 FEMA disaster declarations, including: 

• Entire states: Alabama, Florida, Georgia, North Carolina, South Carolina 

• Localities in: Alaska (Juneau), New Mexico (Chaves County), Tennessee (refer to detailed list), Virginia (refer to detailed list) 

The full list is here.   

 

What’s Covered Under the Extension 

Automatic relief includes: 

• 2024 individual tax returns and payments (normally due April 15) 

• Partnership and S Corporation returns (normally due March 17) 

• Corporate and fiduciary returns and payments (normally due April 15) 

• Quarterly estimated taxes (normally due April 15) 

• Other time-sensitive filings as designated by the IRS  

No action is needed if your IRS address is in an affected area.  

 

Need More Time to File? 

To file beyond May 1, submit Form 4868: 

• Electronically if before April 15 

• On paper if between April 15 and May 1 

This extends the filing deadline to October 15, 2025, but does not extend the payment deadline—taxes must still be paid by May 1. 

 

Extended Relief: Other Deadlines 

Some areas have later deadlines: 

• Oct. 15, 2025 – Los Angeles County, CA (January wildfires) 

• Nov. 3, 2025 – All of Kentucky and parts of West Virginia 

• Sept. 30, 2025 – U.S. taxpayers affected by 2023 terrorist attacks in Israel, Gaza, and the West Bank 

 

Additional Notes 

• Penalty relief is automatic, but call the IRS if you get a notice in error 

• Taxpayers outside the disaster area with records inside it can request relief: 866-562-5227 

• Workers aiding disaster recovery may also qualify 

• Disaster losses can be claimed on either the current or prior year’s return (see Publication 547) 

 

Need More Help? Contact your ATA tax advisor or visit IRS Disaster Relief Center
 

You might be wondering:

Will the recent IRS staff cuts impact my ability to file my taxes and get my refund on time? It’s a fair concern. With the IRS recently firing nearly 7,000 employees and shutting down 100 Taxpayer Assistance Centers (TACs)—and with reports suggesting even deeper cuts ahead—many taxpayers are left asking how this will affect their tax filing experience.

The IRS is responsible for processing millions of tax returns every year, issuing refunds, and answering taxpayer questions. With fewer employees, there’s a possibility of:

• Longer processing times for refunds
• More difficulty getting IRS assistance
• Potential backlogs
• Increased risk of errors

What Can I Do to Make Sure My Taxes Are Filed Without Delays?

The best way to avoid issues this tax season is to take action early. Here’s what you can do:

• File as early as possible – The sooner you submit your return, the faster it will be processed.
• Use e-filing and direct deposit – These methods are the quickest way to get your refund.
• Double-check your return – Mistakes or missing information can slow down processing, so ensure everything is accurate.
• Monitor your refund status – The IRS “Where’s My Refund?” tool can help you track your return.

Have Questions? Contact Your ATA Advisor.

If you have concerns about filing, refund timing, or how these IRS changes may impact you, reach out to your ATA advisor today.

Our team is here to help ensure your tax season runs smoothly—so you don’t have to worry.

With the arrival of fall, it’s an ideal time to begin implementing strategies that could reduce your tax burden for both this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2024. You may not itemize because of the high 2024 standard deduction amounts ($29,200 for joint filers, $14,600 for singles and married coup les filing separately, and $21,900 for heads of household). Also, many itemized deductions have been reduced or suspended under current law. If you do itemize, you can deduct medical expenses that exceed 7.5% of adjusted gross income (AGI), state and local taxes up to $10,000, charitable contributions, and mortgage interest on a restricted amount of debt, but these deductions won’t save taxes unless they’re more than your standard deduction.

The benefits of bunching

You may be able to work around these deduction restrictions by applying a “bunching” strategy to pull or push discretionary medical expenses and charitable contributions into the year where they’ll do some tax good. For example, if you can itemize deductions for this year but not next, you may want to make two years’ worth of charitable contributions this year.

Here are some other ideas to consider:

Postpone income until 2025 and accelerate deductions into 2024 if doing so enables you to claim larger tax breaks for 2024 that are phased out over various levels of AGI. These include deductible IRA contributions, the Child Tax Credit, education tax credits and student loan interest deductions. Postponing income also may be desirable for taxpayers who anticipate being in a lower tax bracket next year due to changed financial circumstances. However, in some cases, it may pay to accelerate income into 2024 — for example, if you expect to be in a higher tax bracket next year.

Contribute as much as you can to your retirement account, such as a 401(k) plan or IRA, which can reduce your taxable income. High-income individuals must be careful of the 3.8% net investment income tax (NIIT) on certain unearned income. The surtax is 3.8% of the lesser of: 1) net investment income (NII), or 2) the excess of modified AGI (MAGI) over a threshold amount. That amount is $250,000 for joint filers or surviving spouses, $125,000 for married individuals filing separately and $200,000 for others.

As year end nears, the approach taken to minimize or eliminate the 3.8% surtax depends on your estimated MAGI and NII for the year. Keep in mind that NII doesn’t include distributions from IRAs or most retirement plans. Sell investments that are underperforming to offset gains from other assets. If you’re age 73 or older, take required minimum distributions from retirement accounts to avoid penalties. Spend any remaining money in a tax-advantaged flexible spending account before December 31 because the account may have a “use it or lose it” feature. It could be advantageous to arrange with your employer to defer, until early 2025, a bonus that may be coming your way. If you’re age 70½ or older by the end of 2024, consider making 2024 charitable donations via qualified charitable distributions from a traditional IRA — especially if you don’t itemize deductions. These distributions are made directly to charities from your IRA and the contribution amount isn’t included in your gross income or deductible on your return.

Make gifts sheltered by the annual gift tax exclusion before year end. In 2024, the exclusion applies to gifts of up to $18,000 made to each recipient. These transfers may save your family taxes if income-earning property is given to relatives in lower income tax brackets who aren’t subject to the kiddie tax. These are just some of the year-end strategies that may help reduce your taxes. Reach out to us to tailor a plan that works best for you. © 2024

With Labor Day in the rearview mirror, it’s time to take proactive steps that may help lower your small business’s taxes for this year and next. The strategy of deferring income and accelerating deductions to minimize taxes can be effective for most businesses, as is the approach of bunching deductible expenses into this year or next to maximize their tax value.

Do you expect to be in a higher tax bracket next year? If so, then opposite strategies may produce better results. For example, you could pull income into 2024 to be taxed at lower rates, and defer deductible expenses until 2025, when they can be claimed to offset higher-taxed income.

Here are some other ideas that may help you save tax dollars if you act soon.

• Estimated taxes

Make sure you make the last two estimated tax payments to avoid penalties. The third quarter payment for 2024 is due on September 16, 2024, and the fourth quarter payment is due on January 15, 2025.

• QBI deduction

Taxpayers other than corporations may be entitled to a deduction of up to 20% of their qualified business income (QBI). For 2024, if taxable income exceeds $383,900 for married couples filing jointly (half that amount for other taxpayers), the deduction may be limited based on whether the taxpayer is engaged in a service-type business (such as law, health or consulting), the amount of W-2 wages paid by the business, and/or the unadjusted basis of qualified property (such as machinery and equipment) held by the business. The limitations are phased in. Taxpayers may be able to salvage some or all of the QBI deduction (or be subject to a smaller deduction phaseout) by deferring income or accelerating deductions to keep income under the dollar thresholds. You also may be able increase the deduction by increasing W-2 wages before year end. The rules are complex, so consult us before acting.

• Cash vs. accrual accounting

More small businesses are able to use the cash (rather than the accrual) method of accounting for federal tax purposes than were allowed to do so in previous years. To qualify as a small business under current law, a taxpayer must (among other requirements) satisfy a gross receipts test. For 2024, it’s satisfied if, during the three prior tax years, average annual gross receipts don’t exceed $30 million. Cash method taxpayers may find it easier to defer income by holding off on billing until next year, paying bills early or making certain prepayments.

• Section 179 deduction

Consider making expenditures that qualify for the Section 179 expensing option. For 2024, the expensing limit is $1.22 million, and the investment ceiling limit is $3.05 million. Expensing is generally available for most depreciable property (other than buildings) including equipment, off-the-shelf computer software, interior improvements to a building, HVAC and security systems. The high dollar ceilings mean that many small and midsize businesses will be able to currently deduct most or all of their outlays for machinery and equipment. What’s more, the deduction isn’t prorated for the time an asset is in service during the year. Even if you place eligible property in service by the last days of 2024, you can claim a full deduction for the year.

• Bonus depreciation

For 2024, businesses also can generally claim a 60% bonus first-year depreciation deduction for qualified improvement property and machinery and equipment bought new or used, if purchased and placed in service this year. As with the Sec. 179 deduction, the write-off is available even if qualifying assets are only in service for a few days in 2024.

• Upcoming tax law changes

These are just some year-end strategies that may help you save taxes. Contact us to customize a plan that works for you. In addition, it’s important to stay informed about any changes that could affect your business’s taxes. In the next couple years, tax laws will be changing. Many tax breaks, including the QBI deduction, are scheduled to expire at the end of 2025.

Plus, the outcome of the presidential and congressional elections could result in new or repealed tax breaks. © 2024