Tag Archives: Small Business Tax Preparation

There has been some confusion with the what is included on the new Form 1099-K form and what belongs elsewhere. Here is an update for clarification on credit card payments that may be useful in your business tax preparation. On the directions to Form 1099-MISC, the IRS has made it clear that payments made with a credit card or through any third-party payer, are not reported on Form 1099-MISC. The indicated amounts are now reported on Form 1099-K. As a result, if a business pays a service provider with a credit card, debit card, gift card, or electronically via a service, the … Click to Read More

While taxes for 2011 are due in April, it is important to take care of any IRS notices and bills from past years that were not paid when due, called back taxes. Here are some frequently asked questions about back taxes in relation to business tax preparation. What back tax issues are commonly encountered by small businesses? · Due to the complexity of tax law, many small business owners do not know how to use available deductions to reduce their lax liability and therefore end up with tax balances that are more than the business can afford to pay. · With the current … Click to Read More

There’s a new IRS 1099 form issued in 2012: Form 1099-K, Merchant Card and Third Party Network Payments. The 1099 is a series of IRS documents used to report non-wage income from a variety of sources like contract work, dividends, earned interest, and pension distributions. The IRS tax Form 1099-K was created as part of the Housing and Economic Recovery Act of 2008, but it did not go into effect until January 1, 2011. The idea of the law was to “improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.” There is a … Click to Read More