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As we quickly approach the deadline for filing 1099-MISC, it is time to consider whether your business is ready to file.
 
The due date for furnishing 1099-MISC statements to recipients and to the IRS for the 2019 tax year is January 31, 2020. Form 1099-MISC, Miscellaneous Income, is an informational return used by the Internal Revenue Service (IRS) to report payments made to non-employee individuals or unincorporated businesses during the calendar year. As the filing of Form 1099 remains a hot topic with the IRS, it is more important than ever to consider whether you are required to file Form 1099 in the course of your trade or business. 
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Do you have a spouse, child, or a parent working for you? If so, did you know you could be paying more Federal payroll taxes than required? No one wants to pay more taxes than they are required to pay! There are a few different taxes on payroll; Social Security tax (SS), Medicare tax (Medi), and Federal Unemployment Tax (FUTA). Some of these taxes might not apply to you, depending on your relationship type with the employee.

Travis O'Hara •

​There are three main questions that business owners ask me about Adjusting Journal Entries (AJE’s):

• What are these?
• Why do I need them?
• How do I post them?

Adding these entries doesn’t make you more profitable, but they still have an impact on your business, so let’s answer these questions now!
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Lena Rozzi, CPA •

Most sole proprietors are aware that their business activities are reported to the Internal Revenue Service (IRS) on Schedule C, Profit and Loss from Business, of Form 1040, U.S. Individual Income Tax Return, on an annual basis. And while Schedule C businesses get most of the same tax deductions as incorporated businesses, Schedule C business owners (sole proprietors) do not get the benefit of getting a tax deduction on “salaries” paid to themselves. Read on for some common questions sole proprietors have when it comes time to “pay” themselves from their business.

New legislation is impacting New Hampshire business tax rates beginning in 2021. Rate reductions had originally been set to reduce at least bi-annually until 2021 when the New Hampshire Business Profits Tax (BPT) rate would have been 7.5% and the Business Enterprise Tax (BET) rate would have been 0.5%.
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Lena Rozzi, CPA •

If driving a vehicle is part of your trade or business, whether it’s a car, truck, or van, you can deduct the vehicle expenses to lower the taxable income you report on your business tax return. While the costs of operating your vehicle can seem pretty straightforward, there are several considerations you should understand to optimize your deduction depending on your particular situation.

Massachusetts has implemented two new laws in 2019 that could have significant impacts on employees, employers and/or those who rent out short-term property. Massachusetts recently sent out an email detailing who might be impacted by the new laws and included links to learn more about them.

​As hurricane season begins, the IRS is encouraging preparation. Beyond stocking up on food and water you also want to prepare to have your documents safe and your valuables documented in case of disaster.
 

The IRS recently released new draft tax forms for 2019 and 2020. New for 2019 are Form 8995, Form 8995-A, and corresponding schedules. These forms are used for the Qualified Business Income Deduction which was new in 2018. New in 2020 is Form 1099-NEC which will be used instead of 1099-MISC to report nonemployee compensation.
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Alyssa Hodges, CPA •

The IRS requires “contemporaneous” documentation for certain types of activities and tax deductions. Some of the areas this covers include mileage, meals, and support for the new 250 hour requirement for the rental real estate safe harbor. “Contemporaneous” means that you should be recording the necessary information at the same time you are doing the activity.
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