Posts tagged IRS
Small and Mid-Size Business Owners: Do Not Run Afoul of the IRS’s New (and constantly changing) Rules for 1099-K Forms.
Small and Mid-Size Business Owners: Do Not Run Afoul of the IRS’s New (and constantly changing) Rules for 1099-K Forms.

With taxes on the minds of many business owners, here is a gentle reminder for next year: for the 2024 tax year, the Form 1099-K could be sent to anyone who used payment services, apps, and online marketplaces to accept payment (such as CashApp, Zelle, Venmo, etc). In addition, the reporting threshold lowers dramatically. For the 2024 tax year, the IRS threshold for reporting will drop down to $5,000. Eventually, the IRS will drop the threshold down to $60 which was set by the American Rescue Plan passed in March of 2021. Although the IRS is taking steps to lower the threshold in phases, it is important for business owners to be aware of these changing reporting requirements and threshold amounts.

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Employers, EmploymentKathleenEtsy, small business, shop local, 1099-K, 1099-K form, Mid-size business, CashApp, Zelle, PayPal, Venmo, IRS, IRS Reporting
IRS Proposes New Program that will Disproportionately Crackdown on Small Business and the Working Class, i.e. the “Small Guys.”
IRS Proposes New Program that will Disproportionately Crackdown on Small Business and the Working Class, i.e. the “Small Guys.”

This past Monday, February 6, 2023, the IRS announced that it is proposing a new program that would allow digital tracking of all service employees’ tips. The new program is called The Service Industry Tip Compliance Agreement (SITCA), which will require more stringent monitoring and reporting of all tips. The SITCA program is the beginning of a new era: one where transactions, even the smallest transactions for a cup of coffee, can trigger tax liability

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Employers, EmploymentKathleenSITCA, IRS, Taxes, Tips, The Internal Revenue Service, Service Industry, The Service Industry Tip Compliance Agreement (SITCA), Tip Rate Determination Agreement (TRDA), Tip Reporting Alternative Commitment (TRAC), Employer signed TRAC (EmTRAC)., 26 C.F.R. §31.3121(q)