If your business paid $600 or more in 2011 to a landlord, accountant, lawyer or any other entity that requires a Form 1099 , you should be aware of an important change in the 2011 individual and corporate business tax returns. The IRS has added two questions to the business income tax returns (both to the Schedule C on the 1040 and the Forms 1120 and 1065): [Read more…] about New In 2011: IRS Adds 1099 Questions
Taxes
S-Corp Owners- Take a Raise to Keep the IRS Away
Owe NJ or NY taxes? ? It Could Cost You Your Driving Privileges
Ignoring a tax debt could cost you more than you might think. Traditionally, states have made use of liens and wage garnishments as the primary method for collecting delinquent taxes. However, the reeling nature of the economy has emboldened states to employ a much more aggressive tactic. On October 4, California passed a law mandating that state’s motor vehicle department to suspend the driver licenses of the top 1,000 tax debtors. Moreover, all their names are to be published online. At least 19 states, including New Jersey and New York, have followed California’s lead and are likewise listing the names of tax delinquents online. While they have not yet suspended driver licenses, these states are desperate for additional tax revenue. It would be wise to take care of your tax liability to ensure not having to move over to the passenger’s side.
IRS INTRODUCES COMPLIANCE PROGRAM FOR EMPLOYEE CLASSIFICATION
As part of the “Fresh start” initiative by the IRS to encourage more corporate and individual tax compliance, a new voluntary program has been announced to encourage employers to properly classify employees as such, rather than as independent contractors. Under the program, employers can obtain substantial relief from federal payroll taxes they would have owed in the past, if they prospectively classify their hires as employees. To be eligible, an applicant must: [Read more…] about IRS INTRODUCES COMPLIANCE PROGRAM FOR EMPLOYEE CLASSIFICATION
Reduce your NJ Unemployment Rates!
All New Jersey employers received this week a Notice of Employer Contribution Rates. It clearly states, “This is not a bill”, but rather a summary of the manner in which the NJ Department of Labor calculates your employer contribution rate for unemployment and disability. Furthermore, this form enables you to determine whether a voluntary contribution would save you, or your clients, money in the subsequent year. A voluntary contribution increases the reserve balance and may reduce your contribution rate. [Read more…] about Reduce your NJ Unemployment Rates!