IRS Form 944 vs. Form 941

2024-01-26 Every employer who pays compensation for services performed by employees must report to the IRS the wages paid, and related employment taxes including income tax withholding, social security tax, Medicare tax and, if applicable, Additional Medicare Tax. Generally, employers must report wages, tips and other compensation paid to an employee by filing Form 941, Employer’s Quarterly Federal Tax Return. But, small employers (those with annual employment tax liabilities of…

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Federal payroll tax deposits

2024-01-25 Federal law requires you, as an employer, to withhold, or take out of your employees’ pay, certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. Federal law also requires you to pay the employer’s share of social security tax and Medicare tax; it is not withheld…

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IRS Information Returns Intake System (IRIS)

2024-01-24 All employers are encouraged to file electronically. E-filing not saves time, and is secure and accurate. The Information Returns Intake System (IRIS) Taxpayer Portal provides a no cost online method for taxpayers to electronically file Form 1099-series information returns. This free electronic filing service irequires no special software. IRIS may be especially helpful to any organization that currently sends paper Forms 1099 to the IRS. With IRIS, business taxpayers…

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New 2023 IRS Electronic Filing Requirements

2024-01-24 The Department of the Treasury and the Internal Revenue Service issued final regulations amending the rules for filing 2023 returns and other documents electronically. Starting tax year 2023, if you have 10 or more information returns, you must file them electronically. To determine if returns must be filed electronically, an employer must add together the number of information returns and the number of Forms W-2 required to be filed…

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IRS Provides Relief from Additions to Tax for Certain Taxpayers’ Failure to Timely Pay Income Tax for Taxable Years 2020 and 2021

2024-01-04 IRS Notice 2024-7 provides relief for certain taxpayers from additions to tax for the failure to pay income tax with respect to certain income tax returns for taxable years 2020 and 2021. These additions to tax for the failure to pay income tax will be waived or, to the extent previously assessed or paid, will be abated, refunded, or credited to other outstanding tax liabilities. There are situations in…

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IRS Voluntary Disclosure Program for questionable Employee Retention Credits

2024-01-04 A new IRS Voluntary Disclosure Program lets employers who received questionable Employee Retention Credits pay them back at discounted rate; interested taxpayers must apply by March 22. The IRS also continues to urge employers with pending ERC claims to consider a separate withdrawal program that allows them to remove a pending ERC claim with no interest or penalty. Interested employers must apply to the ERC Voluntary Disclosure Program by…

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Corporate Transparency Act (“CTA”) reporting starting January 1, 2024

2023-11-01 Congress passed the CTA in December 2020, requiring disclosure of extensive information on the owners and persons in control of entities, including most private businesses with less than 20 full-time employees, and less than $5,000,000 annual gross receipts, to the Financial Crimes Enforcement Network (“FINCEN”) beginning on January 1, 2024. The CTA’s reach is very broad and will impact persons who own businesses, LLCs to hold real estate, family…

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Tax professional account

2023-11-01 The IRS continues to provide enhanced capabilities for tax professionals' online accounts, helping practitioners manage their active client authorizations on file with the Centralized Authorization File (CAF) database, which stores the information on individuals authorized to act on a taxpayer's behalf. Other enhancements put into place in September 2023 allow tax professionals to view their client's tax information, including balance due amounts. Tax Pro Account users can now also…

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IRS Individual accounts

2023-11-01 The IRS continues to deploy enhanced capabilities for individual accounts following the May launch of virtual assistance and live chat. Taxpayers can now validate their bank accounts and save multiple accounts, eliminating the need to re-enter bank account information every time they make a payment. This feature launched at the end of September.

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