Tuesday, January 5, 2016

About filing 1099-Misc

1099-Misc Basics

If you are a business owner and hired independent contractors during the year, you may have to issue them form 1099 Misc.

This is a method that the IRS uses to make sure that the income is then reported by the contractor.

You also need to send a copy to the IRS.

The rules boil down to this:

If you own a business and you paid a contractor of $600 or more, you are required to file a 1099 Misc

There is an exception, and that is if the contractor is a Corporation, then you do not need to prepare the form

Also, any payments to an attorney - this would suggest that the IRS officially does not trust attorney's must be reported

Do not include payments for materials, 1099's should be for services provided only.

Filing these forms has become easier over the years.  You can find a firm that prepares these forms for you at:

http://www.efilingplus.com/


By Doug Zandstra CPA EA
Certified Public Accountant
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
email doug@dougzandstra.com

Affordable Care Compliant Health, Dental, Vision Short-Term Disability and Life Insurance Quotes


The Affordable Care Act is now in full effect.  It is complicated.  Now everyone is required to have a minimum amount of health insurance, you need options.

We have a viable option for you to meet the standards and avoid the penalties for not having health care.

Get a quote online by using the ling below

http://drakehealth.com/site/svc/egateway?sid=90224

By Doug Zandstra CPA EA
Certified Public Accountant
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503
616 970 3000
email doug@dougzandstra.com

Sunday, January 3, 2016

If You Owe Back Taxes, Your Passport Can Be Revoked

The Transportation Funding Act of 2015 has a unique provision.

Embedded deep within H.R. 22 is a provision that can cause taxpayers a bit of a headache.  Basically it says that the IRS can notify the Secretary of State if a taxpayer has an outstanding balance of more than $50,000, then the Secretary of State has broad authority to change the status of a taxpayer's passport, including revoking a taxpayer's passport.

There is additional language describing exceptions, which includes a payment agreement, etc..  But if the IRS has filed a lien and you are not making payments, you will probably not be able to travel outside of the US.

This could have some implications for some folks, causing some serious headaches.

By Doug Zandstra CPA EA
Certified Public Accountant
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
email doug@dougzandstra.com