Tax Changes Coming for Property Owners
As we reported a few months ago, businesses will be required to issue 1099s to any single vendor that collects over $600 in aggregate payments from that business. This provision was included in order to offset the costs of health-care reform by closing the “tax gap” created by under-reported income.
The Small Business Jobs Act enacted September 27, 2010 included another provision for 1099s that individual...
As we covered in last month’s newsletter, the IRS is looking for ways to close the multi-billion dollar “tax gap”. As a result of this crackdown, the IRS will now more closely watch the taxes of sole proprietors.
An estimated 20% of the tax gap is attributed by the IRS to underreporting of income by sole proprietors. According to IRS estimates from 2001, 70% of...
The “tax gap”, so-called because the IRS collects about 84 cents on every dollar of tax owed, is a more pressing issue than ever. The difference between what is owed by businesses and consumers and what is actually paid is estimated to be approximately $290 billion per year.
As a result, the IRS and federal government are cracking down in several areas of tax regulations where underreporting...
One of the most common sources of accounting problems for many business owners is inaccurate record keeping. Not only will reliable records help your business operate more efficiently, the stress of tax time can be greatly reduced if you are keeping clean records throughout the year. Should you receive an IRS notice, your good records will be essential to address any questions.
To ensure accurate...
Payroll errors are common and costly. Most errors involve one of the most difficult aspects of payroll processing, improper tax management that results in expensive IRS penalties. Statistics show that roughly 40% of small businesses incur an average of $845 per year in IRS penalties.* But mistakes can also cost you the trust of your valued employees.
Here are 4 of the most common payroll mistakes:
1. Missing Deadlines
Managing payroll...
As a result of the recent credit crunch and ongoing economic difficulties, both businesses and individuals are changing their spending behavior. Some are seeking flexibility and relying more on credit instead of cash or debit cards while others are icing credit cards to curtail debt.
Debit cards operate like cash – and prevailing wisdom is that cash is generally the smartest payment method. However, there...
Welcome to our new monthly e-newsletter from Executive Accounting Services. Each month we will bring you important news, tips and information you should know about your personal and business financials. We’ll have archives of our newsletters on our new website.
Sincerely,
Terri Benforado
President
Changes Coming to 1099 Forms
Starting January 1, 2012, businesses and their accounting departments will be required to issue a 1099 form to any individual...
Executive Accounting Services has done a fine job for my business and for our personal finances. We are very small company with no need for full-time in house accounting, and EAS has supported us with their outsourced accounting services. They make recommendations as to how best manage our overall finances—business and personal. They are a detail oriented group and have a competent, friendly staff. I would recommend them to anyone.
