The Tax Advisor recently published an article about properly reporting partner compensation. Here is an excerpt from the Executive Summary of that article by Noel P. Brock, CPA. As partnerships increasingly offer equity interest to retain valued employees, these employees may be unaware of the employment tax consequences of receiving a partnership interest. Many partnerships [...]
Despite the fact that the IRS initially said they would not attempt revenue matching from Form 1099-K, notices have gone out to some taxpayers assessing thousands of dollars in penalties! Form 1099-K requires credit card processors to report gross receipts to recipients as well as to the IRS. The IRS has begun a matching program [...]
The IRS created Form 8822-B for businesses to inform them of a change of address or change of the identity of a responsible party. This form becomes effective January 1, 2014 and must be filed within 60 days of a change. The updated form can be found on the IRS website at http://www.irs.gov/pub/irs-pdf/f8822b.pdf. Please note that there [...]
This post is directly from the IRS Newwire Service and has not been written by JMF. It is important information for our clients and therefore is reposted for your information. IRS Warns of Pervasive Telephone Scam IRS YouTube Video: Tax Scams: English | Spanish | ASL WASHINGTON — The Internal Revenue Service today warned consumers [...]
The Alabama Department of Labor (formerly the Department of Industrial Relations) posted the following to their website: Effective immediately, Alabama Department of Labor will begin assessing a $25 penalty for each newly hired or rehired employee that is not reported to the New Hire Directory. A newly hired employee is an employee who: 1.) [...]
The IRS has explained the tax treatment of legal fees paid under settlement agreements with employees who brought suit against employers. The fees may be taxable and they may actually be subject to employment taxes. How you report those fees to the employees and to the IRS is determined by a four-step process: 1. [...]
The IRS recently ruled on service charges that restaurnats add to large groups. These are classified as regular wages rather than tips because they are not optional. While this isn't a change from the actual law it is a change for how service changes are handled in practice. What does this mean for you and [...]
Many activities can be scrutinized by the IRS to determine if they are truly a business activity or a hobby. This is important because hobby losses are limited to the amount of income that is generated and are also subject to a floor of 2% of adjusted gross income as a miscellaneous itemized deduction. If [...]
NOTICE To all persons dispensing or transferring ophthalmic materials, to include but not limited to lenses, frames, eyeglasses, contact lenses, and other therapeutic devices to patients: Legislative Act No. 2013-333 amends Section 40-23-1, Code of Alabama 1975, to provide that the dispensing or transferring of ophthalmic materials, including lenses, frames, eyeglasses, contact lenses, and [...]
As schools let out across the country many students are looking for summer work. As their potential employer there are six things the IRS would like you to know to stay compliant with payroll tax laws. 1. You need to have ALL new employees complete a Form W-4. Don't assume that because they are a [...]