The IRS has been pushing for many years to capture cash income of small businesses and force him to pay taxes. That is one of the reasons that the IRS is requiring credit card merchant service companies to report a 1099-K for businesses to the IRS.
TaxConnections
Online Sales and Physical Presence Nexus
All of the energy and focus on the Marketplace Fairness Act (MFA) has lulled many online sellers into a false belief that they do not need to collect retail sales tax on their online sales until Congress takes action on the MFA. What many online sellers forget is that states can still require online sellers to collect retail sales tax if the online sellers have physical presence nexus in a state.
The Independent Contractor Ranks Are Growing
The number of workers identifying themselves as “independent contractors” is growing in the United States. In 2005 the U.S. Bureau of Labor Statistics determined that the number of independent contractors rose from 6.4% of the workforce in 2001 to 27.4% of the workforce by 2005. In 2010, Navigant Economics claimed the following:
Employers Face Stiff Affordable Health Care Act Excise Taxes
The Affordable Health Care Act (ACA) (“Obama Care”) may lead to stiff excise taxes for larger and midsize employers that misclassify employees as independent contractors.
S Corp vs. LLC: Simple as Choosing Salt or Pepper?
When choosing an operating entity for a company, it is very important that we thoroughly research the options available. Your business can be a sole proprietorship, a partnership with someone else, a single member LLC, a pass-through entity like an S Corporation or it can be a C corporation.
Small Business Payroll: Mistakes and How to Avoid Them
Payroll Compliance is a challenge that many small businesses struggle with. Payroll done by business owners themselves mean that they need to have the know-how to comply with the Internal Revenue Service’s strict rules regarding accurate reporting & deposits.
Year End Planning: Payroll
Doing your last payroll for the year is an important time to make sure you have a tax plan in place. That payroll is often the last cash transaction for the year; your last chance for tax deductions.
Business vs. Hobby
Many taxpayers engage in activities they enjoy and do it for a business purpose. Whether the IRS considers it as a business or hobby has important income tax implications.
Tax Tips If You Are Starting a Business
If you plan to start a new business, or you’ve just opened your doors, it is important for you to know your federal tax responsibilities. Here are five basic tips the IRS provides that can help you get started.
Independent Contractor Versus Employee?
Is it better to be an independent contractor or an employee? For a small business owner (SBO), the question mostly is how to determine what business relationship exists between the person providing the services & the SBO, and if that relationship is that of an independent contractor or an employee.
