Estimated tax penalties a nuisance and sometimes unwelcome surprise.

Predicting what we will owe each year before the year is complete can be complicated, and sometimes it can seem unfair to owe penalty on taxes that are not really due yet, however the authority has been granted to to the IRS to make sure we are paying tax obligations throughout the year, which is basically a normal process for most employed individuals.

The estimated tax process is designed to have the same "throughout the year" effect.

Beneficial Ownership Information - New Reporting Requirements

The Department of Treasury is requiring Beneficial Ownership Information reports to be filed beginning January 1, 2024.  This requirement is born out of the Corporate Transparency Act of 2021 to bulwark against financial crimes.

We advise every statutory entity evaluate its compliance requirements with respect to this Act and related rules to avoid potential criminal and civil penalties for violations can be up to $500 per day not filed and/or $10,000 and two years imprisonment.

Executive Summary

• Aggressive marketing and direct solicitations of third party companies are using the “suspension” test to qualify for the Employee Retention Credit.
• Taxpayers may make improper evaluations, where guidance is complex and unclear.
• Contingent fees from certain companies are generally due before the credit is received, which may take six to eighteen months or longer.
• Amending prior year returns and/or filing Administrative Adjustment Requests (AARs) is required.
• Cumulative costs of ERC credit claims are not fully considered with respect to (1)claiming the credit (2) audit representation (3) audit failure.

Ensure a much smoother year-end close by focusing on your closing steps prior to year end.

The most coommon 1099 filing requirements are businesses service purchases and must be filed by January 31st following year of payment.  The IRS and many states can subject you to civil penalties per missed filing.

Changes in recent years with 1099K, 1099-NEC, and 1099-MISC along with many misconceptions tend to lead to confusion most of which can easily be avoided.

In this issue, you will learn:

• 1099-Misc, 1099-NEC and 1099-K
• Common misunderstandings when issuing a 1099
• How to collecting the proper information to file 1099s
• Make things easire for the upcoming year
• Recommended methods of filing 1099s

Within many business components of business activity may include a personal benefit.  When these benefits are more than deminims, specialized reporting and tax treatment is generally warranted.  In these cases, the IRS regards fringe benefits as a form of compensation or a reduced deduction.

Some examples of fringe benefits are:

• Company paid group health and dental premiums for certain self-employed individuals
• Certain non-qualified and non-cafeteria plan expenses
• Company paid disability insurance premiums
• Daycare expenses directly or indirectly provided by an employer
• Personal use of a company car

We'll help you navigate reporting requirements and methods for some of the more common fringe benefit most businesses face.

+K2N Advisors & CPAs , means “Adding Knowledge to Numbers”.

Growth is one of the primary objectives of every business, and businesses can grow through mergers or acquisitions.

Estate planning is not just for people who are retiring or the very wealthy. If you have anything of value, whether it be a car, a home, or a sentimental possession, you will want to ensure they are passed down to your loved ones.

It can feel like every possibility is on the table when starting a business, which is an overwhelming thought. That is why vision is key. By envisioning the costs and profits associated with a venture, entrepreneurs can set themselves up for success. The following tips for business budgeting can help make the difference between great beginnings and humble resets.

OSGroup (Windham, NH) seeking professionals w/ 3+ yrs direct CPA Firm competencies seeking professional life balance and growth.