Author: Frank Carnahan

2024-02-09 IR-2024-33, Feb. 6, 2024 The Internal Revenue Service today revised frequently asked questions (FAQs) for Form 1099-K, Payment Card and Third Party Network Transactions, in Fact Sheet 2024-03. The revised FAQs provide more general information for taxpayers, including common situations, along with more clarity for industry and what organizations should send Forms 1099-K. The FAQs are in addition to a recently updated Understanding your Form 1099-K on IRS.gov page…

2024-02-06 Employee Retention Credit (ERC) page at IRS.gov. Businesses that meet certain requirements may be able to participate in the IRS Voluntary Disclosure Program. The deadline is March 22, 2024. The IRS is having a Free VDP webinar - Thursday, Feb. 8 at 2 p.m. EST. It’s primarily aimed at tax professionals, however; the webinar may also be useful to others interested in this topic. Those who want to attend…

2024-01-31 IR-2024-12, Jan. 16, 2024 The Treasury Department and Internal Revenue Service announced that businesses that they do not have to report the receipt of digital assets the same way as they must report the receipt of cash until Treasury and IRS issue regulations. The Infrastructure Investment and Jobs Act revised the rules that require taxpayers that are engaged in a trade or business to report receiving cash of more…

2024-01-31 IR-2023-230, Dec. 6, 2023 The IRS warns taxpayers to use extreme caution before applying for the ERC as aggressive maneuvers continue by marketers and scammers, and urges taxpayers who submitted claims to review the ERC requirements and talk to a trusted tax professional about their eligibility amid misleading marketing around the credit. When properly claimed, the ERC is a refundable tax credit designed for businesses that continued paying employees…

2024-01-31 The Internal Revenue Service has taken the first step to initiating its Direct File pilot, and on January 29, 2024, launched the Direct File landing page (https://directfile.irs.gov), providing taxpayers a resource to learn more about the program, assess their eligibility to participate in the Direct File pilot, and to receive notification when the pilot goes live. The site indicates that if you lived in a state that is not…

2024-01-30 IR-2023-244, Dec. 19, 2023 In January 2024, the IRS will begin sending automated collection notices and letters to individuals with tax debts prior to tax year 2022, and businesses, tax exempt organizations, trusts and estates with tax debts prior to 2023, with exceptions for those with existing debt in multiple years. These notices and letters were previously paused due to the pandemic and high inventories at the IRS, but…

2024-01-26 Every employer who pays compensation for services performed by employees must report to the IRS the wages paid, and related employment taxes including income tax withholding, social security tax, Medicare tax and, if applicable, Additional Medicare Tax. Generally, employers must report wages, tips and other compensation paid to an employee by filing Form 941, Employer’s Quarterly Federal Tax Return. But, small employers (those with annual employment tax liabilities of…

2024-01-25 Federal law requires you, as an employer, to withhold, or take out of your employees’ pay, certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. Federal law also requires you to pay the employer’s share of social security tax and Medicare tax; it is not withheld…

2024-01-24 All employers are encouraged to file electronically. E-filing not saves time, and is secure and accurate. The Information Returns Intake System (IRIS) Taxpayer Portal provides a no cost online method for taxpayers to electronically file Form 1099-series information returns. This free electronic filing service irequires no special software. IRIS may be especially helpful to any organization that currently sends paper Forms 1099 to the IRS. With IRIS, business taxpayers…