Penalties for Missing the 1099-NEC or 1099-MISC Deadline
Businesses need to report payments to independent contractors and non-incorporated businesses on Form 1099-NEC if those payments totaled $600 or more during 2021. These payments may represent fees, commissions, prizes, awards, or other forms of compensation for services performed for your business.
2021 Tax Year in Review
After another rollercoaster of a year, now is a good time to consider the tax changes affecting 2021. The most significant changes for individuals came from American Rescue Plan Act enacted in March 2021 and the Consolidated Appropriations Act that was passed in December 2020.
PA State Senate Approves Small Business Tax Reform
Senate Bill 349 would increase the state limit for property that may be treated as a deductible expense in calculating personal income tax from $25,000 to $1,050,000. This provision is related to the commonly known Section 179 deduction available for many taxpayers on their federal income tax returns.
Tax Changes for Crypto Investors
In another recent development, the IRS Chief Counsel’s office issued Advice 202124008, which states that exchanges of bitcoin for certain other crypto assets did not qualify for gain nonrecognition as like-kind exchanges under Section 1031.
You’ve Received a Notice From the IRS. Now What?
Getting an IRS notice in the mail can be scary and overwhelming. But, they often aren’t the catastrophe they may initially seem to be, and careful handling can resolve the issue quickly and painlessly.