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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 […]

QuickBooks: Marking payments for exclusion from Form 1099-MISC

Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. (These payments are being reported by the card issuers and third-party payment networks on Form 1099-K.) When you use check payments (in […]

Affordable Care Act (ACA) Information Center for Tax Professionals

Information for Your Individual Client What is Minimal Essential Coverage (MEC)? Does my client qualify for an exemption from MEC? What is the Premium Tax Credit?/FAQs Why it is important to report life & income changes to the Marketplace (Exchange) When would my client need to make an Individual Shared Responsibility Payment(ISRP)?/FAQs What is a […]

Obamacare – Extra Time to Small and Large Businesses

Treasury and IRS Issue Final Employer Mandate Rules for Obamacare, Giving Extra Time to Small and Large Businesses: http://www.accountingtoday.com/news/Treasury-IRS-Issue-Final-Employer-Mandate-Rules-Obamacare-69572-1.html?utm_campaign=tax%20pro%20today-feb%2012%202014&utm_medium=email&utm_source=newsletter&taxpro=1

IRS Offers Tips for 2013 Year-End Giving

IRS Offers Tips for 2013 Year-End Giving http://www.irs.gov/uac/Newsroom/IRS-Offers-Tips-for-Year-End-Giving-2013

2014 IRS Standard Mileage Rates Announced

The Internal Revenue Service today issued the 2014 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, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile for business […]

Issues with Low S-Corp Shareholder Compensation

There is no black & white, definitive line, and that there are several factors to consider, that may be unique to the particular activity of a tax year when considering reasonable compensation of a s-corp shareholder employee. A previous post helps provide information to consider when setting the amount, this post specifically addresses why one […]

IRS claims it can read your e-mail without a warrant

http://news.cnet.com/8301-13578_3-57578839-38/irs-claims-it-can-read-your-e-mail-without-a-warrant/

Standard Mileage Rates for 2013

Standard Mileage Rates for 2013 Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56.5 cents per mile for business miles driven. 24 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of charitable […]