2023 Winter Newsletter
December 27, 2023
Katie Thomas, CPA, CFP®, CGMA
President & CEO
An exciting addition
You might have seen the news already, but we recently announced that the firm Schowalter & Jabouri, P.C., of St. Louis, merged into the Honkamp family.
S&J was one of the 20 largest CPA firms in the St. Louis metro area, and we couldn’t be more excited to have the firm’s 33 employees join Honkamp. The team will continue to serve clients out of the St. Louis office.
This is Honkamp’s first office in Missouri and another step in the growth of our firm. Read more about it here: Honkamp adds top St. Louis firm
Speaking of new additions to the Honkamp family, the firm welcomed two new principals in the last quarter – Jackie Carl and Holly Cushman. Both bring a wealth of experience and knowledge.
Jackie joins us with 29 years of tax and audit experience, including 24 years with RSM US LLP. Holly has nearly 25 years of tax experience, including 20 years as tax director of a law firm in Dubuque and more than four years of tax work with Deloitte.
Read their biographies to learn more about Jackie and Holly.
Year-end tax tips
There’s still time in 2023 to better position yourself financially for a strong 2024.
With that in mind, we are sharing our extensive year-end tax letter. It provides information for individual, business and financial tax planning.
Check it out now to make sure you end 2023 in the best possible financial position: 2023 year-end tax letter
New business requirement for 2024
A new filing requirement that will affect more than 30 million businesses will go into effect on January 1.
The U.S. Treasury Department’s Financial Crimes Enforcement Network will require that beneficial ownership information be submitted for many small businesses across the country.
This article provides details on what businesses are impacted and the 23 exceptions: New beneficial ownership rule impacts millions of U.S. businesses
FYI on Iowa PTET
Another FYI: In the last quarter, more information was shared on a new law that could benefit many Iowa business owners.
State officials released guidance for the new Iowa Pass-Through Entity Tax (PTET). Many states have implemented PTET to bypass the $10,000 limit on the state and local tax deduction imposed on individuals at the federal level.
Electing to pay this state tax will save many business owners federal tax. Honkamp Principal Mike Hurd explains: New tax law should benefit Iowa businesses
Beware of aggressive ERC marketing
The IRS continues to sound the alarm regarding aggressive and misleading marketing related to claiming Employee Retention Tax Credits.
Unscrupulous marketers have pushed thousands of businesses to apply for the credit when they don’t qualify – a move that could have financial and legal ramifications for both the companies and their owners.
We urge any of our clients or prospective clients to contact us before proceeding with a company that claims you are eligible for this credit.
Read more about the issue here: Use trusted advisors for Employee Retention Tax Credits
Calling all those in construction
Attention, construction industry leaders. You should put one of our upcoming free, in-person seminars on your calendar.
We will team up with TRICOR Insurance on January 17 in Platteville, Wis., and on January 18 in Dubuque. Both seminars will cover the same topics. They will feature experts discussing a range of key issues, such as state and local taxes, top 10 OSHA violations, the importance of return-to-work programs, and contract bonding.
For all of the details and to sign up to attend one of these free sessions, click here: Free webinars for construction industry leaders
R&D presents tax savings opportunity
Research and Development (R&D) tax credits are not reserved just for researchers, scientists and engineers, nor are they limited to large companies. In fact, many smaller businesses can qualify for the credits and realize savings opportunities as a result.
Read more about the basics of R&D tax credits here: R&D tax credit can help businesses save big at tax time
Computer tax exemption logging off
Iowa business owners that need to upgrade their computers should act fast.
State code currently provides a sales and use tax exemption for purchases of computers and “computer peripherals used in processing or storage of data or information” by commercial enterprises, financial institutions and insurance companies. However, that exemption will be eliminated at the end of this year.
Starting on January 1, 2024, such purchases will be subject to Iowa sales and use taxes. Contact Principal Scott Brawdy at firstname.lastname@example.org if you have any questions.
Watch out, Home Shopping Network
The fictional Honkamp Shopping Network debuts in this year’s holiday video, featuring a surprising variety of must-have items.
Watch the video to see tremendous (fake) offers on wares ranging from Honkamp pants to Doug’s Secret Recipe Cookies. The video also features a star turn by a reluctant sheep. Intrigued? Click here: The Honkamp Shopping Network
We recently announced the winners of our firm’s most prestigious annual awards: the Arnie Honkamp Firm First Award and the Internal and External Customer Service Stars awards.
This year’s winners are:
- Arnie Honkamp Firm First Award: Accounting Supervisor Scott Madsen
- Arnie Honkamp Firm First Award: Maintenance Coordinator Phil Perry
- Internal Customer Service Star: Business Application Specialist Mitchell Schmitt
- External Customer Service Star: Senior Administrative Coordinator Lori Ungrodt
Learn more about the awards and our winners here: Honkamp announces annual award winners
Pardon us while we brag a bit more. These honors are just too good not to share: