IRS: Reduced Backup Withholding Rate Applies to Small Businesses

The IRS updated Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), last month to reflect a key change as part of the Tax Cuts and Jobs Act (TCJA). Effective January 1, 2018, the backup withholding tax rate dropped from 28 to 24 percent.

Among other circumstances, backup withholding applies when a taxpayer fails to provide their correct taxpayer identification number (TIN) to a payer or when a taxpayer underreports interest or dividend income on their federal tax return. Continue reading IRS: Reduced Backup Withholding Rate Applies to Small Businesses

IMPORTANT – Tax Season 2018 Deadlines are Coming!

If you’ve been keeping up with our blog, you might be starting to think we sound a bit like a broken record with how often we mention deadlines for the upcoming tax season. Listen, we’re only doing it because we care about you.

We cannot stress enough how important it is to know and be aware of your filing deadlines. It will help you avoid last-minute time crunches and potential penalties.  So one more time, here are all your Tax Season 2018 ACA and 1099 deadlines in one convenient blog post! Continue reading IMPORTANT – Tax Season 2018 Deadlines are Coming!

Verifying Employee TIN Information

Once you have determined your common law employees and your total of full-time employees, an important detail in completing your ACA reporting is verifying your employees’ taxpayer identification numbers (TIN).

Failing to include an employee’s TIN, or providing the wrong TIN, could result in having your filing rejected, requiring corrections, re-issuing of employee copies, and potential penalties from the IRS. It is crucial to verify that you have the correct employee TIN information in order to avoid such consequences.

We created TINCorrect in order to help employers accurately file their IRS information returns. Continue reading Verifying Employee TIN Information