Category: Business Practices
Lower Form 1099-K threshold delayed again
The IRS again delayed the effective date of the $600 threshold for Form 1099-K reporting for third-party settlement organizations and will treat 2023 as another transition year, the Service said Tuesday in Notice 2023-74. When the IRS starts implementing the...
Using the “Cohan Rule” to take record-less deductions
Most taxpayers understand the importance of maintaining thorough records to substantiate tax deductions and credits. These records are not only essential for tax purposes but also play a critical role in various scenarios such as insurance claims, wage disputes, and...
Understanding and minimizing the chance of employee fraud
Have you ever considered the possibility of one of your employees engaging in fraud? Trusted individuals can betray that trust when three conditions converge, commonly known as the “Fraud Triangle”: Pressure: There exists a hidden need for money, often driven...
ERC withdrawal process initiatied for those who may have been scammed
Internal Revenue Service is allowing small businesses who believe they may have entered the ERC process fraudulently or under incorrect guidance to withdraw without penalty. This new withdrawal option allows certain employers who filed an ERRC claim but have not...
IRS pauses the processing of new Employee Retention Credit (ERC) claims
Internal Revenue Service has placed an immediate moratorium on processing new Employee Retention Credit (ERC) claims following growing concerns that a substantial share of these claims are ineligible and putting businesses at financial risk by being scammed by aggressive promoters....
Insurance proceeds for rent loss are not subject to sales tax in Florida
Due to the numerous hurricane-related loss claims in recent years in Florida, there has been uncertainty regarding whether insurance claim proceeds for lost rent on commercial rental properties should be included in your monthly Sales and Use Tax Return (Form...
Do you have a hobby or a business? The IRS will want to know…
From gardening to crafting and all things in between, people pursue a wide array of hobbies which are unlikely to generate income. However, for those hobbies that do earn money, individuals need to understand their obligation to report it on...
Tax benefits (and pitfalls) of hiring your minor children as a small business owner
School breaks present an opportune time to involve minor children in your small business. As long as they perform legitimate work for your enterprise, hiring your child allows you to pay them up to $12,000 annually tax-free, while also claiming...
Corporate Transparency Act reporting requirements coming in 2024
A new law intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity will affect millions of American businesses when it goes into effect on January 1, 2024. Broadly speaking, new regulations created...
Tax issues when operating a business as a married couple
Operating one's own business offers the advantage of employing family members, but it's important to understand the specific employment tax requirements that apply to family employees, which can differ from those for other employees. Here are key considerations outlined by...