The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued final rules on Form TD-F 90-22.1, Report of Foreign Bank and Financial Accounts (known as the “FBAR”). Generally, United States persons are required to file an FBAR if the United States person had a financial interest in or signature authority over at least one financial account [...]
Read More Foreign Bank Account, Income Tax Planning, Income Tax Preparation, Tallahassee Tax Service, TallyTaxManIf you take credit cards in your business, you will be issued a form 1099-K by your merchant services company. IRC Code Sec. 6050W imposes information reporting requirements on payments made in settlement of payment card and third-party network transactions. The reporting requirement applies to payments made after December 31, 2011. The IRS finalized Form [...]
Read More 1099-k, Income Tax Planning, Income Tax Preparation, Merchant Payment Card Reporting, Small Business Tax, Tallahassee Tax Service, TallyTaxManStarting with securities purchased in 2011, brokers are required to file information returns that not only provide the IRS and customers with details on the sales proceeds from each trade executed during the year but also the customer’s adjusted basis in the security and whether any gain or loss is long- or short-term. The basis [...]
Read More bonds, Broker, debentures, Income Tax Planning, Income Tax Preparation, notes, securities purchased, stock in c corporation, Tallahassee Tax Service, TallyTaxManThe IRS announced a new program to enable employers to voluntarily reclassify their workers for federal employment tax purposes (IR-2011-95; Ann. 2011-64). The Voluntary Classification Settlement Program (VCSP) is open to employers that currently treat their workers as independent contractors and want to prospectively reclassify the workers as employees. In exchange for prospective treatment of [...]
Read More Income Tax Planning, Income Tax Preparation, Small Business, Tallahassee Tax Service, TallyTaxMan, Worker Classification ProgramThe IRS audit rate for individual returns filed in fiscal year 2010 was 1.1 percent, according to statistics released by the agency in 2011 (IR-2011-27). This represented approximately 1.6 million returns out of the approximately 143 million returns filed by individuals. The audit rate for individual returns with positive income of $1 million or more [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS requirements, Tallahassee Tax Service, TallyTaxManThe New Year will bring the biggest unemployment tax increase in state history for Florida’s businesses already struggling from the recession. Right now the minimum unemployment tax is 72 dollars per employee. Starting next year the minimum rate rises to 171 dollars. At Helen’s Uniform Shop in Tallahassee the increase comes as new rules and [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Small Business, Small Business Tax, Tallahassee Tax Service, TallyTaxMan, Unemployment Tax IncreaseA corporation that failed to obey an IRS wage levy on one of its employees was liable for the employee’s delinquent taxes and for a penalty under Code Sec. 6332(c)(2) (United States v. Heli USA Airways, Inc., DC Nev., 2011-2 ustc ¶50,728). The corporation’s argument that it’s Chief Financial Officer, who was responsible for responding [...]
Read More Employer Liable for Employee's Delinquent Taxes, Employer Responsible for Penalties, Income Tax Planning, Income Tax Preparation, Tallahassee Tax Service, TallyTaxMan