Hutchinson and Bloodgood LLP

🚨 Important Tax Update: Your Passport Could Be at Risk! 🚨 Did you know that your taxes could impact your passport status? Don’t let unpaid taxes catch you by surprise! Seriously delinquent tax debt (SDTD) could put your passport at risk (unless an exception applies). SDTD is a legally enforceable, unpaid federal tax assessment. In 2025, this debt must exceed $64,000, with a lien filed and other remedies exhausted. These debts include U.S. individual income taxes, trust fund recovery penalties, business taxes for which the taxpayer is personally liable and other civil penalties. If the IRS notifies the U.S. State Department that you have SDTD, your passport may be denied, revoked or limited. Feel free to reach out if you have any questions! I’m here to help! #IncomeTaxes #IndividualTaxation #Passport

The optional standard mileage rate used to calculate the tax-deductible cost of operating a business vehicle increased in 2025. The IRS announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck is 70 cents. In 2024, the rate was 67 cents per mile. The standard rate is useful if you don’t want to track actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip. The standard mileage rate is adjusted annually and calculated based on driving costs, including the price of gas. According to AAA, the national average price of a gallon of regular gas on Jan. 17 was $3.11. #TaxPlanning #MileageRates #BusinessExpenses #IRSUpdates

Business owners: Do you feel like far too many of your marketing campaigns fizzle out? Let’s explore some big-picture ways to make your marketing dollars pop. #MarketingStrategy #BusinessGrowth #MarketingTips #MaximizeROI

You can’t keep funds in your traditional IRA indefinitely. You must start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 73. You must take your first RMD by April 1 of the year following the year in which you turn 73, regardless of whether you’re still employed. The RMD for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” If you take money out of a traditional IRA before age 59½, you may be subject to a 10% penalty tax and income tax on the distribution. #RetirementPlanning #IRAWithdrawals #RMDRules

Your small business may be eligible for big first-year Section 179 depreciation tax deductions for new and used heavy SUVs, pickups and vans placed in service in 2025. You must use the vehicle more than 50% for business. The write-off will reduce your federal income tax and self-employment tax bill, if applicable. This tax break is only available for a purchased (not leased) SUV, pickup, or van with a manufacturer’s gross vehicle weight rating above 6,000 pounds. The 2025 limit on Sec. 179 deductions for heavy SUVs $31,300. First-year depreciation deductions for lighter vehicles are subject to smaller depreciation limits of up to $20,400 in 2024. (The 2025 amount hasn’t come out yet.) #BusinessTaxSavings #FirstYearDeductions #HomeOfficeBenefits

There are some tax-savvy ways to build education savings and pay for college. Here’s how to help maximize education funds and minimize financial stress. #EducationSavings #529Plan #CollegePlanning

Business owners: Are your IT costs getting out of control? You may be able to rein them in by deploying various proactive measures. Here are some examples. #ITBudget #CostControl #TechnologyManagement

Achieving the best tax treatment for Sec. 1231 gains and losses can be a challenge. Here’s how to help plan the timing of gains and losses for optimal tax results. #BusinessTaxPlanning #Section1231 #CapitalGainsTax

With unemployment low, many small businesses need more employees. The Work Opportunity Tax Credit can help if you hire from certain targeted groups. #WorkOpportunityTaxCredit #WOTC #WorkforceInclusion

Business owners: Do you often feel like you’re steering a ship through the dark when it comes to your company’s financial performance? Flash reports may help. #FlashReports #FinancialInsights #BusinessPerformance