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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 […]
Questions and Answers for the Additional Medicare Tax
Questions and Answers for the Additional Medicare Tax: Source: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax The following questions and answers provide employers and payroll service providers information that will help them as they prepare to implement the Additional Medicare Tax which goes into effect in 2013. The Additional Medicare Tax applies to individuals’ wages, other compensation, and self-employment income over […]
Payments made with a credit card are not subject to reporting on Form 1099-MISC
An excerpt from IRS Form 1099-MISC instructions: Payments made with a credit card or payment card and certain other types of payments, including third party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for […]
2013 IRS Retirement Contribution Limits
2013 IRS Retirement Contribution Limits http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-SIMPLE-IRA-Contribution-Limits
Before you donate, check the organization’s tax exempt status
Want to know if the the exempt organization that you are planning to donate to is elgible to receive charitble contributions or had their exempt status revoked? Go here: http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check Tip: If you do not know the organization’s EIN, just leave it blank. Churchs may not be required to file IRS Form 990 in many cases. See IRS Publication […]
Per diem limitations for business owners and >10% shareholders
If all of the actual travel costs are being put on the company credit card, then there is no per diem to pay, the company has paid the actual expenses because they are charged to the company’s credit card and paid by the company. If owner uses his personal credit card or personal cash for […]
Business Gifts – tax deduction limitations
The IRS allows you to $25 or less for business gifts you give to any one person during your tax year, whether directly or indirectly. Any amount in excess is non-deductable. Gifts your spouse gives to the same person or gifts given to someone who you reasonally expect will give it to the same person combine […]
C corp converted to S corp results in B.I.G. tax.
This excerp is from the executive summary of an article cited below. When a C corporation converts to an S corporation or an S corporation acquires assets from a C corporation in a tax-free transaction, it may be subject to a corporate-level “built-in gains” tax in addition to the tax imposed on its shareholders. The […]
The basics of S corporation stock basis
This is a great article about the basics of S-Corporation shareholder stock basis. http://www.journalofaccountancy.com/issues/2012/jan/20114319.htm
Tax Court: Itemized receipts required to substantiate deductions.
A recent court case (Gorokhovsky v. Commissioner, T.C. Memo. 2012-206) disallowed deductions because the taxpayer lacked itemized receipts necessary to substatiate deductions. Main Issue: Credit card statements and cancelled checks while are important to prove payment, do not contain the detail and itemization necessary to substantiate a deductable business expense, nor do self-generated expense records. […]
Partners are not employees and should not be issued a W-2
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, […]
2012 SIMPLE IRA Contribution Limits
SIMPLE IRA contributions include: salary reduction contributions and employer contributions: a. matching contributions or b. nonelective contributions. No other contributions can be made to a SIMPLE IRA plan. Salary reduction contributions. The amount the employee contributes to a SIMPLE IRA cannot exceed $11,500 for 2011 and 2012. If an employee participates in any other employer plan […]
IRS Personal Tax Return Refund Status
IRS Personal Tax Return Refund Status: http://www.irs.gov/individuals/article/0,,id=96596,00.html
Corporate tax return due date is today, need an extention?
The due date for corporations whose tax year ends on December 31st is March 15. If you are unable to file by then, most domestic corporations can apply for an automatic 6 month extention using IRS Form 7004. IRS Form 7004: http://www.irs.gov/pub/irs-pdf/f7004.pdf Intructions for IRS Form 7004: http://www.irs.gov/pub/irs-pdf/i7004.pdf A corporation with any other fiscal year-end has […]
Employer-Provided Health Coverage Reporting Requirements on W-2 (2011 and 2012)
Employer-Provided Health Coverage Reporting Requirements on W-2. Source: http://www.irs.gov/newsroom/article/0,,id=237894,00.html QuickBooks “Health Coverage Cost” set-up for reporting code DD in Box 12 Source: http://payroll.intuit.com/support/kb/2001263.html and http://www.payroll.com/healthcoverage
What is Form 1099-K and why should I care?
You may receive for the first time for tax year 2011 Form 1099-K from your merchant account provider or other third party payment processors such as Paypal for amounts customers paid to you through their network. You should add up all Form Form 1099-MISC and Form 1099-K amounts and make sure that total amount is equal […]
2012 IRS Standard Mileage Rates
IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July IR-2011-116, Dec. 9, 2011WASHINGTON — The Internal Revenue Service today issued the 2012 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, 2012, the […]
How To Find A Merchant’s MCC Code
How to find a MCC (Merchant Classification Code) http://visa.via.infonow.net/locator/usa/supplier/NewSearch.do