Top Federal Tax Issues for 2025 CPE Course: Module 1

Author: Barbara Weltman, Bradley Burnett, David Morrissy, Greg White, Jane Ryder, Steven R. Antico, Esq

Wolters Kluwer's Top Federal Tax Issues Course identifies those recent events that have developed into the current “hot" issues of the day. These tax issues have been selected as particularly relevant to tax practice in 2025. They have been selected not only because of their impact on return preparation during the 2025 tax season but also because of the important role they play in developing effective tax strategies for 2025 and beyond. This module covers tax developments and updates. Topics covered include tax updates for businesses, tax updates for individuals, C corporations update, LLCs, employee retention credit (ERC), partnership update, and the road to compliance: understanding the Corporate Transparency Act and FinCEN beneficial ownership.

Publication Date: December 2024

Designed For
CPAs and Tax Professionals

Topics Covered

• Income and Exclusions
• Deductions
• Credits and Other Taxes
• Other Developments
• Planning in Advance for the Sunset of the TCJA
• Inflation-Adjusted Amounts
• Treasury Priority Guidance Plan
• Adjusted Minimum Late Filing Fee
• Constitutional Challenge to the TCJA Transition Tax
• IRS Reaching Corporate Assets
• Authority to Assess the Form 5471 Penalty
• Interaction Between C Corporations and Disregarded Entities
• Accounting Method Changes
• C Corporations Buy-Sell Agreements and Life Insurance
• Electronic Filing of Information Reports and Income Tax Returns
• Code Sec. 6672 Trust Fund Recovery Penalty
• Employee Retention Credit
• IRS Procedure
• IRS Data Book
• Overview
• Self-Employment Taxes
• Proposed Regulations
• Self-Employment Tax for LLCs and Case Law
• Phaseout of QBID for Specified Service Trade or Business (SSTB) Income
• How to Adjust Guaranteed Payments
• Original ERC Eligibility Highlights
• IRS Audit and Compliance Investigations Involving the ERC
• IRS ERC Withdrawal Program
• Applicable Due Dates Related to the ERC
• ERC Audits
• Eligible Criteria for a Valid ERC Claim
• Accurately Reporting ERC Refunds Received
• Deduction for Restaurant Meals
• “Sweat Equity” Interests
• Self-Employment Tax for Limited Partnerships
• Changes to Form 1065 and Schedule K-1
• Changes to Form 8308
• E-Filing Requirement
• Credits for New Retirement Plans
• Beneficial Ownership Information (BOI)
• What is a Reporting Company?
• Who is a Beneficial Owner?
• What is a BOI Report?
• When does an Initial BOI Report Need to be Filed?
• BOI Report Updates
• Penalties for Failing to Submit a BOI Report
• Fraudulent Attempts to Obtain BOI
• Additional Resources

Learning Objectives

• Identify the latest developments in federal taxation for businesses
• Recognize and apply recent developments to year-end tax planning
• Identify the business meals deduction percent for 2023 and beyond
• Identify the credit percentage for a qualified investment in a facility that manufactures semiconductors or the equipment to make them
• Identify the penalty amount per month per owner for failure to file 2023 S corporation returns in 2024
• Identify the latest developments in federal taxation for individual taxpayers
• Recognize and apply recent developments to year-end tax planning
• Identify the 2024 foreign earned income exclusion
• Identify the MSRP limits for a vehicle to qualify for the new clean vehicle credit
• Identify the 2024 wage base with respect to Social Security for figuring the applicable portion of self-employment tax
• Recognize and apply new developments affecting C corporations
• Identify after what year many non-corporate provisions of the Tax Cuts and Jobs Act (TCJA) will expire
• Identify the 2023 IRS standard mileage rate with respect to business travel
• Identify the form to be used for conducting Trust Fund Recover Penalty (TFRP) interviews
• Identify the Code Sec. 6621(c)(1) large corporation underpayment rate for the period of October 1, 2023, through December 31, 2023
• Recognize when self-employment tax does not apply to LLC members
• Identify and apply self-employment principles to LLC members
• Describe how to maximize the LLC 20% passthrough deduction
• Recognize how to adjust guaranteed payments to maximize the 20% passthrough deduction
• Identify under which type of LLC all members can contractually obligate the LLC
• Identify what portion of guaranteed payments qualify for the qualified business income deduction
• Determine which clients may be facing audit exposure for employee retention credit (ERC) refunds received
• Explain ERC withdrawal options to clients who may have submitted questionable claims
• Identify best practices for reporting ERC refunds received in 2023 and prior years
• Identify clients who may need to amend tax returns for ERC refunds received
• Identify a client’s eligibility to submit a claim for the 2021 ERC
• Identify the percent deduction allowed for restaurant meals on 2023 and 2024 tax returns
• Identify the method for admitting “sweat equity” partners without triggering gain recognition and allowing existing partners to extract their capital
• Determine whether LLC members are required to pay self-employment tax
• Identify the type of interest you can earn equity through by using tax-free “sweat equity”
• Identify the number of beneficial ownership information (BOI) exemption categories
• Explain the purpose of the beneficial ownership information (BOI) reporting requirements
• Identify the information required in a BOI report
• Identify which entities are considered “reporting companies” and any exemptions
• Recognize who is considered a “beneficial owner” and a “company applicant”
• Describe how to obtain a FinCEN Identifier
• Explain how to file a BOI report
• Identify deadlines for filings and updates
• Identify penalties associated with untimely or untrue filings
• Recognize fraudulent attempts to obtain BOI

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (10 hours)

Program Prerequisites
A basic understanding of individual tax preparation, S Corporations, and C Corporations. Experience in preparing Forms 1065 for LLCs.

Advance Preparation
None