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Depreciate or Expense – IRS Safe harbor rules

Tangible Property Regulations – Frequently Asked Questions From: https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations Section 162 of the Internal Revenue Code (IRC) allows you to deduct all the ordinary and necessary expenses you incur during the taxable year in carrying on your trade or business, including the costs of certain materials, supplies, repairs, and maintenance. However, section 263(a) of the IRC […]

Reporting Cash payments of more than $10,000

Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments. Who’s covered For purposes of cash payments, a “person” is defined as an individual, company, corporation, partnership, association, trust or estate. For example: Dealers of jewelry, furniture, boats, aircraft, automobiles, art, […]

DOL SIMPLE IRA Plans for small business publication

DOL (Department of Labor) SIMPLE IRA Plans for small business publication: Most of the information is the same as the IRS, however we noticed this more stringent salary deferral deposit requirement: For plans with fewer than 100 participants employers can deposit salary eduction contributions with the plan no later than the 7th business day after […]

2019 Retirement Plan Limitations

2019 Retirement Plan Limitation highlights: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan […]

SIMPLE IRA Plan

A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan. Choose a SIMPLE IRA Plan Learn the basics of a SIMPLE IRA plan […]

Business Gifts Considerations

Giving is a sign of gratitude and appreciation. It’s a common saying that “giving is better than receiving”. The giver has the benefit of feeling good about blessing someone else, and the recipient has both the benefit of feeling good that giver cares, and also that of the actual gift. Additionally, the recipient may be more […]

IRS Addresses ‘Tip Boxes’

At the end of each shift, then, the individuals decided how to allocate the tip box.  Here, the there was no evidence that the Taxpayer knew the actual amounts received, nor did it issue Forms W-2 or include those amounts on Forms 941. During an audit, the IRS determined that the volunteers should be treated […]

Updated Withholding Calculator on IRS.gov and a new version of Form W-4

The Internal Revenue Service today released an updated Withholding Calculator on IRS.gov and a new version of Form W-4 to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act in December. The IRS urges taxpayers to use these tools to make sure they have the right amount of […]

IRS safe harbor from penalties for failure to file correct information returns

IRS Notice 2017-09 provides the requirements for making an election related to information returns and seeks comment on the matters discussed in the notice. Section 202 of the Protecting Americans from Tax Hikes Act of 2015 (P.L. 114-113) amended sections 6721 and 6722 to provide that an error on an information return or payee statement […]

SIMPLE IRA Plan FAQs – Contributions

SIMPLE IRA Plan FAQs – Contributions Copied from https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions What types of contributions may be made to a SIMPLE IRA plan? Each eligible employee may make a salary reduction contribution and the employer must make either a: matching contribution or nonelective contribution. No other contributions may be made under a SIMPLE IRA plan. Can contributions made […]

S Corporation Compensation and Medical Insurance Issues (Updated 8/3/16)

S Corporation Compensation and Medical Insurance Issues When computing compensation for employees and shareholders, S corporations may run into a variety of issues. The information below may help to clarify some of these concerns. Reasonable Compensation S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation […]

IRS Tests W-2 Verification Code for Filing Season 2016

For filing season 2016, the Internal Revenue Service will test a capability to verify the authenticity of Form W-2 data. This test is one in a series of steps to combat tax-related identity theft and refund fraud. The objective is to verify Form W-2 data submitted by taxpayers on e-filed individual tax returns. The IRS […]

2015 SIMPLE IRA Plan FAQs – Contributions

SIMPLE IRA Plan FAQs – Contributions What types of contributions may be made to a SIMPLE IRA plan? Each eligible employee may make a salary reduction contribution and the employer must make either a: matching contribution or nonelective contribution. No other contributions may be made under a SIMPLE IRA plan. Can contributions made under a […]

IRS Mobile App for making tax payments and refund status

IRS Mobile App for making tax payments, checking refund status, and more… http://www.irs.gov/uac/IRS2GoApp

IRS Direct Pay is a free way to make Form 1040-ES payments

IRS Direct Pay is a free way to make Form 1040-ES, Estimated Tax payments. To meet the Tues., Sept. 15, 2015 deadline, a payment scheduled for Sept. 15, 2015, entered into Direct Pay before 8 p.m. EST on Mon., Sept. 14, 2015 will meet the Sept. 15, 2015 deadline if it successfully processes. Source: http://www.irs.gov/Payments/Direct-Pay

FAQs about Affordable Care Act Implementation (Part XXII)

FAQs about Affordable Care Act Implementation (Part XXII) Source: http://www.dol.gov/ebsa/faqs/faq-aca22.html Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of the Affordable Care Act. These FAQs have been prepared jointly by the Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (collectively, the Departments). Like previously issued FAQs (available at http://www.dol.gov/ebsa/healthreform/ […]

Advantages and Disadvantages of Different Business Entity Types

Advantages and Disadvantages of Different Business Entity Types Source: http://blog.accountants.intuit.com/from-the-experts/above-the-forms-advising-clients-on-type-of-entity/ Sole Proprietorships A sole proprietorship is the simplest and most common business structure. This is an unincorporated business with one owner. There is no legal distinction between the business and the owner. Here are some advantages and disadvantages of sole proprietorships: Resources: IRS Schedule C Profit […]

Use Online Tools for Tax Help

Get a tax transcript. You may need a tax transcript for a variety of reasons including if you apply for a loan or student financial aid, information needed for state or local tax filing purposes, or even for medical, housing or utility social services. Visit IRS.gov and use the Get Transcript tool. Try IRS Direct […]

How to handle reimbursements to Independent Contractors

This is an excerpt from IRS Publication 463, “Travel, Entertainment, Gift, and Car Expenses”, Chapter 6: Rules for Independent Contractors and Clients This section provides rules for independent contractors who incur expenses on behalf of a client or customer. The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they […]

Payroll taxes and rates: wage bases and limits-Multiple Years

Taxes and rates: wage bases and limits Article ID: 2000093  Source: http://payroll.intuit.com/support/kb/2000093.html Overview This article is about the rates and limits for Social Security, Medicare, federal income tax (FIT), state income tax (SIT), and state unemployment income (SUI). Assumptions You have employees subject to federal taxes. Details Wage base limits for DIY and Assisted payroll are […]

IRS Announces 2015 Pension Plan Limitations

WASHINGTON — The Internal Revenue Service today announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because […]

Accountable Plan Expense Reimbursements

From IRS Publication 15 (2014) http://www.irs.gov/pub/irs-pdf/p15.pdf Employee business expense reimbursements. A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees’ business expenses. How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. If a single payment includes […]

QuickBooks Payroll: FAQs for 2014 FUTA Credit Reduction States

This article explains how the Federal Unemployment Tax Act (FUTA) credit reduction affects your FUTA taxes, Form 940, and Schedule A for 2014. http://payroll.intuit.com/support/kb/1000921.html

IRS Announces 2015 Standard Mileage Rate

IR-2014-114, Dec. 10, 2014 WASHINGTON — The Internal Revenue Service today issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck […]

Paypal issues Form 1099-K to sellers

Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive […]