Have you ever gone online shopping and realized you were never charged sales tax on the items you purchased? To this day states make it so unclear whether or not an online company has a requirement to collect and remit sales tax. However, a recent Supreme Court case has changed online shopping as we know it.
1099s are often viewed as hassle, with the taxpayer loathing to receive them and the business loathing to send them out. However, the IRS does like 1099s and is making more of a concentrated effort to keep track of the process. According to Investopedia, in 2015 the IRS “sent 3.7 million CPA2000 notices to taxpayers saying that, based on those matches they owed more money.” This essentially means the income and/or payment information the IRS has on file does not match the information reported on your tax return, and due to this more money is owed. The IRS is paying attention.
Virtually every business owner will tell you it takes more than one person to build up and maintain a profitable business. In fact, it is likely that several “key employees” have contributed to the success of any given operation. However, while a business owner may be careful to make sure that he or she is adequately insured, the need to protect the business against the loss of key employees is often ignored or disregarded, which is a mistake.
Paying income tax is bad enough, but insult is added to injury if you are assessed any tax penalties. There are numerous no-nos for individuals and small-business owners to avoid, but here are five of the major offenses in the tax code.
Although summer is traditionally the time for rest and relaxation, you can still “work on” your 2016 tax bill. What’s more, special tax incentives for individuals and small-business owners have been restored by the Protecting Americans from Tax Hikes (PATH) Act of 2015. Here are seven popular tax-saving ideas.