"NEW 2016"
The new 1099 Penalties
Congress has gotten serious about not issuing 1099’s. In prior years the penalty for not issuing a 1099 was $50 per event. For 2016 in many cases the penalty could be as much as $1,000 per each omitted or incorrect 1099-Misc. A 1099-Misc is required whenever you pay a non-corporate entity $600 or more in one year in business transactions. The 1099-Misc must be provided to the taxpayer by January 31, 2017 and this year the IRS’ copy must also be provided by January 31, 2017 or those penalties will apply. The problem you may encounter is those sub-contractors that don’t want you to issue them one, so make sure you get them to fill out a W-9 form before you issue them a payment. Make sure you issue the 1099’s to every possible supplier, vendor or service provider, including us!
IRS Tax Tip 2012-20 - Six Tips for Charitable Taxpayers
The IRS Assessed Penalty will be issued beginning in late July, 2012: Very important and NEW!!!!
$100 penalty per record for mismatched TIN and names!
Information returns filed after January 1, 2011 could pose a financial risk to your company if those penalties cannot be successfully abated. The new law that raised the penalty structure to double or more will be applied to the IRS 972CG letters issued in July.
The Increase in Information Return Penalties is significant. The bill impacts three areas of the penalty program:
FUTA Tax Rate Decreased July 1, 2011
FUTA Tax Rate Decreased July 1, 2011 Beginning July 1, 2011, the Federal Unemployment Tax Act (FUTA) tax rate is now 6.0% (a decrease from 6.2%). The 0.2% FUTA surtax expired on June 30, 2011.
FUTA Tax Reporting
FUTA Tax Calculations The federal wage base for FUTA tax that is paid by the employer is $7,000, which means the tax applies to the first $7,000 an employer pays to each employee as wages during the year. State wage bases may be different. Generally, employers can take a credit against their FUTA tax for amounts they paid into state unemployment funds. The credit may be as much as 5.4% of FUTA taxable wages. If you are entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.8% (0.6% after June 30, 2011). You are entitled to the maximum credit if you paid your state unemployment taxes in full, on time, and on all the same wages as are subject to FUTA tax, and as long as the state is not determined to be a credit reduction state.
June 23, 2011
Mileage Rates to Increase
Just this morning the IRS issued Announcement 2011-40 releasing news that the business standard mileage rate will increase to 55.5 cents a mile for all business miles from July 1, 2011, through December 31, 2011. This is an increase of 4.5 cents a mile from the 51 cents rate for the first six months of 2011.
The medical and moving mileage rates will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.
The rate for providing services for charitable organizations is set by statute and remains at 14 cents a mile.
June 1st 2011: Maryland
RENEWING DRIVER'S LICENSE AND VEHICLE REGISTRATION
Beginning June 1, 2011, State law requires that individuals and businesses
that have unpaid, undisputed state tax liabilities and/or unpaid
unemployment insurance contributions must satisfy the debt(s) prior to
renewing a Maryland driver's license or vehicle registration.
The new 1099 Penalties
Congress has gotten serious about not issuing 1099’s. In prior years the penalty for not issuing a 1099 was $50 per event. For 2016 in many cases the penalty could be as much as $1,000 per each omitted or incorrect 1099-Misc. A 1099-Misc is required whenever you pay a non-corporate entity $600 or more in one year in business transactions. The 1099-Misc must be provided to the taxpayer by January 31, 2017 and this year the IRS’ copy must also be provided by January 31, 2017 or those penalties will apply. The problem you may encounter is those sub-contractors that don’t want you to issue them one, so make sure you get them to fill out a W-9 form before you issue them a payment. Make sure you issue the 1099’s to every possible supplier, vendor or service provider, including us!
IRS Tax Tip 2012-20 - Six Tips for Charitable Taxpayers
The IRS Assessed Penalty will be issued beginning in late July, 2012: Very important and NEW!!!!
$100 penalty per record for mismatched TIN and names!
Information returns filed after January 1, 2011 could pose a financial risk to your company if those penalties cannot be successfully abated. The new law that raised the penalty structure to double or more will be applied to the IRS 972CG letters issued in July.
The Increase in Information Return Penalties is significant. The bill impacts three areas of the penalty program:
- Missing or Incorrect Names and TINS – increases the current $50 penalty to $100 per record and the calendar year maximum increases from $250,000 to $1,500,000.
- The Three Tiered Penalty Program for returns filed late, incorrectly or filed on incorrect media also generally increases;
- o First Tier increases from $15 to $30 per return and the maximum increases from $75,000 to $250,000
- o Second Tier increases from $30 to $60 and the maximum increases from $150,000 to $500,000
- o Third Tier increases from $50 to $100 and the maximum increases from $250,000 to $1,500,000.
- Intentional Disregard – If the IRS can determine that your company did not comply with the regulations related to any aspect of the regulations regarding payee documentation, withholding, withholding deposits, filing returns and payee statements, the IRS can impose an “Intentional Disregard” Penalty. The intentional disregard penalty increases from $100 to $250 per account and has no maximum limit. Just 100 errors for TIN and Name Mismatches will be a $10,000 penalty!
FUTA Tax Rate Decreased July 1, 2011
FUTA Tax Rate Decreased July 1, 2011 Beginning July 1, 2011, the Federal Unemployment Tax Act (FUTA) tax rate is now 6.0% (a decrease from 6.2%). The 0.2% FUTA surtax expired on June 30, 2011.
FUTA Tax Reporting
FUTA Tax Calculations The federal wage base for FUTA tax that is paid by the employer is $7,000, which means the tax applies to the first $7,000 an employer pays to each employee as wages during the year. State wage bases may be different. Generally, employers can take a credit against their FUTA tax for amounts they paid into state unemployment funds. The credit may be as much as 5.4% of FUTA taxable wages. If you are entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.8% (0.6% after June 30, 2011). You are entitled to the maximum credit if you paid your state unemployment taxes in full, on time, and on all the same wages as are subject to FUTA tax, and as long as the state is not determined to be a credit reduction state.
June 23, 2011
Mileage Rates to Increase
Just this morning the IRS issued Announcement 2011-40 releasing news that the business standard mileage rate will increase to 55.5 cents a mile for all business miles from July 1, 2011, through December 31, 2011. This is an increase of 4.5 cents a mile from the 51 cents rate for the first six months of 2011.
The medical and moving mileage rates will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.
The rate for providing services for charitable organizations is set by statute and remains at 14 cents a mile.
June 1st 2011: Maryland
RENEWING DRIVER'S LICENSE AND VEHICLE REGISTRATION
Beginning June 1, 2011, State law requires that individuals and businesses
that have unpaid, undisputed state tax liabilities and/or unpaid
unemployment insurance contributions must satisfy the debt(s) prior to
renewing a Maryland driver's license or vehicle registration.