Category: Small Business
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4 new concerns for small business owners
(The short Facebook Live presentation of this topic is published at https://fb.watch/2Y8-AzhgVE/ ). Here’s where we are in the small business world today based on brand new developments in the past month. It does not inspire confidence for a smooth start to 2021: 1) SBA’s special priority small business PPP application acceptance processing period begins…
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2021 plans
I won’t be saying “Happy New Year” today but I will be sharing my plans to make it a better year ahead. Hoping you do the same. There is strength in community. My plans to make 2021 a better year:1) Focus on improving the level of my personal communications that will lead to deeper relationships…
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Are small Paypal or Venmo payments reported to IRS?
Paypal and Venmo are clear in explaining their legal requirement to report to the IRS amounts over $20,000 or 200 transactions. But what about amounts under $20,000 and less than 200 transactions? The common questions are: “What if I don’t remember? How will the IRS even know?”. The key issue is that business taxpayers who…
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Big tax change for small businesses
The IRS reminds employers that starting in tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. This is likely the biggest change that affects a large number of small businesses this year. Generally, payers must file Form 1099-NEC by January 31.…
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Simple bookkeeping systems for sole proprietors
In general, I try to have a coaching conversation with new clients and prospective clients about the reasonable time and cost allocation for bookkeeping in relation to other business factors. We hope to see this allocation consistent with others who are successful within a business niche and, if a significant difference exists, look more closely…
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TAX ALERT: Non-employee compensation
SIGNIFICANT TAX NEWS CHANGE ABOUT NON-EMPLOYEE COMPENATION: The IRS revived the use of Form 1099-NEC for use in reporting non-employee compensation for 2020. This form was last used in 1982 but now will be used to report 2020 non-employee compensation. Corresponding changes were made to the old 1099-MISC form. The due dates are also changed.…
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2020 IRS Report on its Operations
IRS just released the 195 page “General Report of the 2020 Internal Revenue Service Advisory Council“. I read the applicable sections on small business and nonprofits that affects me and my clients. The key relevant concepts are: 1) IRS currently lacks the funding to operate effectively to collect the taxes necessary to run federal government.…
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Covid small business disaster story update
My list of Covid small business accounting horror stories is down to just three remaining open and unresolved: 1) A bank that extended a PPP loan application to 4 1/2 months and still counting; apparently due solely to lack of internal process control. I follow up with them every two to three days. All involved…
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Update on pandemic payroll tax deferrment
New guidance on the so-called pandemic payroll tax deferment issued by IRS last week does not change previously issued guidance to small business employers. The new IRS guidance strengthens the argument that employers should not make any change in payroll tax practices at this time. Deferent of payroll taxes, if not paid timely in early…