Category: IRS
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Businesses Must Report Non-employee Compensation and Backup Withholding
Businesses must report nonemployee compensation and backup withholding By law, business taxpayers who pay or receive nonemployee compensation of $600 or more must report these payments to the IRS. They do this using Form 1099-NEC, Nonemployee Compensation. Generally, payers must file Form 1099-NEC by January 31. For 2021 tax returns. There is no automatic 30-day…
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IRS Announces Two New Online Tools to Help Families Manage Child Tax Credit Payments
Child Tax Credit Eligibility Assistant helps families determine whether they qualify for Child Tax Credit payments Update Portal helps families monitor and manage Child Tax Credit payments WASHINGTON — The Internal Revenue Service today launched two new online tools designed to help families manage and monitor the advance monthly payments of Child Tax Credits…
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The First Step of Good Tax Planning is Good Record-keeping
Year-round tax planning is for everyone. An important part of that is recordkeeping (see below). Gathering tax documents throughout the year and having an organized recordkeeping system can make it easier when it comes to filing a tax return or understanding a letter from the IRS. Good records help: Identify sources of income. Taxpayers may…
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Filing Payroll Taxes Electronically
Running a business with employees can be hard work. One way business owners can make things a little easier on themselves is by filing payroll and employment taxes electronically. There are several benefits to filing these forms electronically:• It saves time.• It’s secure and accurate.• The filer gets an email to confirm the IRS received the form within…
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Facts to help taxpayers understand backup withholding
Backup withholding is a federal tax on income that otherwise typically doesn’t require tax withholding, such as 1099 and W2-G income. Taxpayers who receive this type of income may have backup withholding deducted from their payments. Here are some basic facts about backup withholding. Backup withholding is required on certain nonpayroll amounts when certain conditions apply.…
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Tax-exempt organizations: 990s, other forms due on May 17; information and tools available to help
WASHINGTON — The Internal Revenue Service today reminds tax-exempt organizations that operate on a calendar-year (CY) basis that certain annual information and tax returns they file with the IRS are due on May 17, 2021. These returns are: Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL) Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt…
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#Homeless – Economic Impact Payments and other tax benefits
________________________________________ Those experiencing homelessness can get Economic Impact Payments and other tax benefits; permanent address not required WASHINGTON — The Internal Revenue Service today continued an ongoing effort to help those experiencing homelessness during the pandemic by reminding people who don’t have a permanent address or a bank account that they may still qualify for…
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IRS extends additional tax deadlines to May 17
Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date. Here’s what’s affected: Contributions to IRAs and health savings accounts People now automatically have until May 17, 2021, to make 2020 contributions to their: Individual retirement arrangements Health savings accounts…
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IRS Unemployment Benefits
IRS to recalculate taxes on unemployment benefits; refunds to start in May WASHINGTON – To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue…