Monthly Archives November 2019

4 Common Tax Errors That Can Be Costly For Small Businesses

IRS TAX TIP 2019-164 Four common tax errors that can be costly for small businesses A small business owner often wears many different hats. They might have to wear their boss hat one day, and the employee hat the next. When tax season comes around, it might be their tax hat. They may think of doing their taxes as just another item to quickly cross off their to-do list. However, this approach could leave taxpayers open to mistakes when filing and paying taxes. Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and

2020 Tax Year Inflation Adjustments

IR-2019-180, November 6, 2019 WASHINGTON — The Internal Revenue Service today announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2019-44 (PDF) provides details about these annual adjustments. The tax law change covered in the revenue procedure was added by the Taxpayer First Act of 2019, which increased the failure to file penalty to $330 for returns due after the end of 2019. The new penalty will be adjusted for inflation beginning with tax year 2021. The tax year 2020 adjustments generally are used on tax

Tax Treatment For Family Members

In October, the IRS posted a new Fact Sheet, FS-2019-14 concerning tax treatment for family members.  You can read the entire tax tip below: One of the advantages of someone running their own business is hiring family members. But when including family members in business operations, certain tax treatments and employment tax rules apply. Here are some facts to know when working with a spouse, parent or child. Both spouses carrying on the trade or business If spouses carry on a business together and share in the profits and losses, they may be partners whether or not they have a