Beware of IRS Penalties related to Form 1099-MISC that are getting larger each year

| Alerding Alerts

Form 1099-MISC is required for payments, during the ordinary course of business for services and rent paid in the amount of $600 or more, to noncorporate payees or any payments to attorneys of $600 or more. Form 1099-INT is required for interest payments of $10 or more. If you paid Alerding CPA Group $600 or more in 2019, you have at least one 1099 to file. This requirement is for all businesses, even sole proprietors, filing Schedule C or reporting rental income Schedule E. Exceptions - If you Read more [...]

Tax Provisions Extended Retroactively

| Alerding Alerts

On Friday, December 20, 2019, the President signed the Further Consolidated Appropriations Act, 2020 which extends several tax provisions related to expiring or expired tax provisions. In addition, the Secure Act, (Setting Every Community Up for Retirement Enhancement) spending package makes major changes to 401(k) plans and IRAs which mostly take effect on January 1, 2020. EXTENDERS Tax extenders are tax provisions that have already expired or were set to expire by year-end.  The Act revives Read more [...]

States may now collect sales tax from out-of-state sellers

| Alerding Alerts, Business Miscellaneous

The U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair overturned the long-standing precedent that prevented states from collecting sales taxes from online and remote sellers unless they had a physical presence in the state. Instead, the court, under Wayfair, introduced an economic nexus test based on the sellers’ sales volume into each state. States may now impose sales-tax collection obligations on online and remote sellers that conduct more than $100,000 in sales or more than Read more [...]

FASB votes to delay effective date for lease standard

| Alerding Alerts, Business Miscellaneous, Financial

The effective date of FASB’s standard on accounting for leases will be delayed for private companies and certain other entities after a unanimous vote Wednesday by FASB. FASB directed its staff to draft an Accounting Standards Update (ASU) that will change the effective date and be issued following a formal written ballot by the board, which is expected to take place in November. Under the ASU, the effective date is delayed one year to fiscal years beginning after Dec. 15, 2020. Early-adoption Read more [...]

New revenue recognition standard

| Alerding Alerts

U.S. GAAP requirements for the new revenue recognition standard (ASC update numbers: 2014-9, 2015-14, 2016-8, 2016-10 and 2016-12; ASC 606) was effective yesterday, January 1, 2019, for non-public business entities (private companies). This new standard applies to private companies with annual reporting periods beginning after December 15, 2018 and interim periods within fiscal years beginning after December 15, 2019. Therefore, it must be adopted and reported on calendar year-end 2019 financial Read more [...]

The IRS Releases Interim Guidance for Business Meals

| Alerding Alerts

Before the Tax Cuts and Jobs Act, taxpayers generally could deduct 50% of expenses for business-related meals and entertainment. But meals provided to an employee for the convenience of the employer on the employer’s business premises were 100% deductible by the employer and tax-free to the recipient employee. Under the new law, for amounts paid or incurred after December 31, 2017, the deduction for business-related entertainment, amusement, or recreation are disallowed completely.  However, Read more [...]

Indiana Identity Protection Program for 2017 tax season

| Alerding Alerts, Tax Briefs

Notice from the Dept. of Revenue The Indiana Department of Revenue again will implement the Identity Protection Program for the 2017 tax season. This program is designed to not only stop fraud, but to deter fraud in the state of Indiana. Since its inception in 2014, the Identity Protection Program has stopped more than $100 million in fraudulent refund attempts. Security Features To prevent taxpayers’ refunds from being stolen, the department will use the automated identity verification Read more [...]

Year-end payroll and information reporting

| Alerding Alerts, Business Miscellaneous

The year is quickly coming to a close and it will soon be time to prepare and file forms W2 and the related payroll tax returns.   We wanted to make you are aware that some fringe benefits provided to employees as well as 2% or greater shareholders are taxable and should be reported on W2 forms in order for them to be deductible business expenses.  Taxable fringe benefits include: Personal use of company vehicle (including shareholders’ use) 2% or greater shareholders’ health insurance Shareholders’ Read more [...]

DOL Final Overtime Rule Temporarily Blocked by Judge

| Alerding Alerts, Business Miscellaneous

A federal judge temporarily blocked implementation of the Final Overtime Rule, scheduled to go into effect tomorrow - December 1, 2016, which doubled the maximum salary a worker could earn and still be eligible for overtime pay. What does this mean for our business-owners and nonprofit clients? 1)    As a result of the ruling, employers currently do not need to comply by the December 1 effective date. 2)    The injunction is temporary pending further review by the court. 3)    Read more [...]

The final rule

| Alerding Alerts

By Mike Staton     The U.S. Department of Labor (“DOL”) has issued the new overtime final regulations (“Final Rule”) which impact nonprofits as well as for profits.  The new rules will go into effect December 1, 2016 and will mean that most employees earning less than $47,476 will be entitled to overtime compensation regardless of their employment classification.  Neither the Federal Labor Standards Act (“FLSA”) nor the DOL’s regulations provide an exemption from overtime requirements Read more [...]