Florida Businesses – There is a Change to the Famous IRS Form W-4. And a Bit More about the Florida Legislative Session.
One of the greatest areas in which I defer to other professional colleagues involves tax planning and the related elements of accounting and book-keeping. What we do not want to happen for a Client is to prepare the terms of and documents for a ‘deal’, and later discover that the transaction structure could result in undesirable tax consequences upon implementation. With Client consent, then, I often share draft ‘deal documents’ with the Client’s CPA to ensure the transaction as-planned integrates properly upon implementation with the Client ‘bigger picture’. Usually (due to experience with numerous scenarios and deals) everything turns out just right the first time.
A disclosure which relates: We have a family member with severe food allergies, which means we always have to be vigilant to what is served and how it is prepared. As we explain to others, “we have to be right every time, and wrong not even once”. That truism applies directly with the tax implications to a Client from a transaction. Which is why I tend to ‘haul-in’ accountants often and early.
In that regard…I read everything I can from accountants which might apply to current and prospective Clients’ needs. One of the local accounting firms with which I work regularly is a regional firm named James Moore & Company. {Yes, I also work often with others.}
Recently, I read a ‘JM&Co’ article about an everyday but important business matter – the ‘good ole’ Form W-4. As Stacy Joyner, CPA’s article entitled “The New W-4: What You Need to Know for 2020” explains:
The Tax Cuts and Jobs Act (TCJA) of 2017 caused quite a shakeup for most taxpayers. As people began filing their taxes in 2018, much talk was made about the variance in refunds (or tax bills owed). Most people quickly realized their withholdings needed adjustment to coincide with the elimination of personal exemptions.
As a result, the IRS has created a new Form W-4 (Employee’s Withholding Certificate). Here is a link to the updated W-4 form, and flash…it is a writable pdf!
Further, as CPA Joyner notes, the IRS also released a withholding calculator to correspond to the new Form W-4.
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CPA Joyner’s article goes into far, far greater detail on the new Form W-4 than this summary. It is well-worth a small amount of time for Florida businesses to read her piece. And while considering the topic, please revisit the recent article from this series entitled “Get Ready Now. Federal Tax Returns Are Due in Just Three Months. (But You Get an Extra Day.)”
As we explain to others, “we have to be right every time, and wrong not even once”.
Now, as to the current Legislative Session. If you, the readers of this series, want periodic detailed ‘heads-ups’ regarding Session matters which could affect Florida’s business, please review your local Chamber of Commerce’s legislative updates. I follow the ones issued weekly during the Session by the Greater Gainesville Chamber. (You are a member of your local Chamber, yes? Well, bravo if you are, and if you are not, you should consider joining.)
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– For more information, call Philip N. Kabler of the Gainesville, FL office of Bogin, Munns & Munns at 352.332.7688, where he practices in the areas of business, banking, real estate, and equine law. He has taught business and real estate law courses at the University of Florida Warrington College of Business Administration and Levin College of Law and is the President-Elect of the Eighth Judicial Circuit Bar Association.
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NOTICE: The article above is not intended to serve as legal advice, and you should not rely on it as such. It is offered only as general information. You should consult with a duly licensed attorney regarding your Florida legal matter, as every situation is unique. Please know that merely reading this article, subscribing to this blog, or otherwise contacting Bogin, Munns & Munns does not establish an attorney-client relationship with our firm. Should you seek legal representation from Bogin, Munns & Munns, any such representation must first be agreed to by the firm and confirmed in a written agreement.
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