In November, the IRS announced this it was pushing back the changes to Form 1099-K reporting rules again. Let’s examine. What is Form 1099-K? Form 1099-K is issued by third-party settlement organizations and third-party network transactions for business transactions. A third-party settlement organization is sometimes called a merchant processor. Whatever you call them, they are […]
Let’s talk about beneficial owner reporting. This is a tricky subject for any tax pro to talk about. We are the ones who are on the front lines of telling clients about this, yet we cannot actually do the filing.* *-I know some tax pros are doing the filing, but the continuing education I have […]
It’s that time of year when people will start receiving 1099s and W-2s. I received one on January 4th, so the season really has begun. If you’re an employer wanting to send a 1099 or W-2 electronically to the recipient … did you know that there are hoops you must jump through? Many Hoops Providing […]
On Friday, July 21, the IRS release a Chief Council Memorandum on the subject of whether or not a business qualifies for the employee retention credit (ERC) based on supply chain disruptions. Here is a link to the memorandum: https://www.irs.gov/pub/lanoa/am-2023-005.pdf The short answer is, no, a supply chain disruption does not qualify a business for […]
The decision to be an S-corporation might be a bad thing for the overall tax picture of a small business right now, in light of the qualified business income deduction. Like everything with taxes, “it depends.” I am not a huge fan of S-corps, and quite frankly there’s nothing wrong with being a sole proprietor. […]
Taxpayers who sell their home don’t need to pay taxes on the sale — “in general.” “In general” is famous last words of the tax code. What if you’ve claimed a home-office deduction relating to your house? In that situation, it’s likely that some of your sale IS taxable. Let’s discuss. Review Let’s use an […]
If you are a business and you pay contract labor, you must issue the contractor a Form 1099-NEC if: The amount you paid to the contractor is $600 or more for the year, and The contractor isn’t taxed as a corporation. If you pay with a credit or debit card, or via a third-party processor […]
This blog post is specific to Iowa. SUTA = state unemployment tax. In Iowa, when a 1-person LLC makes an election to be taxed as an S-corporation and pay the owner a salary, the salary is NOT automatically subject to state unemployment tax. Instead, the owner has the option of making themselves subject to unemployment tax. […]
I wanted to revisit the subject of 1-person LLCs and employer identification numbers. Here are the basics, when a 1-person LLC is taxed as a sole proprietorship: The IRS says to put the proprietor’s name and SSN* on the W-9 The IRS says to use the proprietor’s SSN* on the Schedule C The IRS says […]
(NOTE: I have been terrible about writing posts this year; I am finally back at a point of being able to blog again, so you’ll see posts more often from me. And if this post is any indication, I have my flair back that so many people liked, of writing with humor and going on […]