1099s Repealed for Corporations! So Do You Need to File Them at All?

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By Stacey Gorowitz, CPA, MBA Although the IRS officially repealed the onerous expanded information reporting requirements for payments made to corporations, the stakes are higher with enhanced penalties for failing to file 1099s when required. Here’s a brief summary explaining when and to whom you do need to file Form 1099 for 2013: When: 1099s are required to be sent to vendors by January 31, 2014 and the corresponding 1099s and summary form 1096 are required to be sent to the IRS by February 28, 2014. Who: All individuals and partnerships including certain corporations to whom you’ve paid $600 or more during the year must be issued a 1099. Individuals would include nonemployees (EX:  Day laborers or subcontractors), etc. Additionally, 1099 reporting is also required for: Rental payments for office space, as well as equipment and machinery. Royalties paid of $10 or more are also included in the 1099 reporting requirement. There are a few exceptions to the general … [Read more...]

2014 – IRS Standard Mileage Rates Announced

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By Stacey Gorowitz, CPA, MBA It’s time to reveal the long-awaited IRS standard mileage rates for 2014. And they are (drumroll, please): 56 cents per mile for the optional business standard mileage rate 23.5 cents per mile for qualified medical and moving expenses 14 cents per each mile driven for charitable purposes Let the celebrations begin! But wait – aren’t some of those numbers lower than last year’s rates? Yes, your memory does not deceive you. The IRS has reduced the optional business standard and medical/moving expense rates from their 2013 levels of 56.5 and 24 cents per mile, respectively. (The charitable miles rate remains the same.) With gas prices generally trending lower than they have been in recent years, the IRS thought it prudent to reduce mileage cost deduction rates to reflect the change. … [Read more...]

If You Fail to Plan…Plan to Pay Taxes!

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By Candace Spencer, CPA, MAFM and Certified QuickBooks ProAdvisor Have you ever been surprised with a large tax bill? When is the last time you received tax planning and/or projections and knew where you stood before year-end? Do you realize that those two questions are closely related? By getting solid financial information and acting on it in a timely fashion, you can prevent unpleasant surprises come filing season. With December right around the corner, time is running out. The good news is that it’s not too late; however, it’s now a race against the clock. If you need more motivation to start thinking about such annoyances as taxes this far before April 15, here are three reasons why you may want to consider tax planning. First, if you haven’t already heard, there have been major changes in the tax law for 2013. Therefore, you can expect the 2013 tax year will NOT be like last tax year. Here are just a few changes you need to be aware of: In 2012 100% of itemized deductions … [Read more...]

2012 IRS Tax Season Fun Facts

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By Stacey Gorowitz, CPA, MBA It’s tax time again, so why not get to know the IRS on a personal basis? Well…maybe that’s too big a step, but we might as well learn a little more about this fixture in our lives, because it’s not going away. On March 25, the IRS announced the release of its 2012 Internal Revenue Service Data Book which includes information about returns filed, taxes collected, enforcement actions, taxpayer assistance and more, from October 1, 2011 to September 30, 2012. Highlights of this treasure trove of data include: Out of the 146 million individual income tax returns filed, almost 81 percent were e-filed. E-filing is so popular because not only does it remove the need to deal with stamps and minimize the risk of your return being lost, it gets your refund into your bank account within just a few days. More than 120 million individual income tax return filers received a tax refund, which totaled almost $322.7 billion. Of course, this is money that already … [Read more...]