Today TaxMama® wants to remind you of some things you should get done in January that you may not have realized.
We’ve been answering a LOT of questions this month. You can look at information in the TaxQuips Forum to see what people have been concerned about – you may have the same concerns – http://iTaxMama.com/AskQuestion .
Employees are facing tax balance shock, finding that they owe money, instead of getting a refund. Do come re-computations about your 2019 tax liability expectations and change your withholding to cover all your taxes. See the notes here – http://taxmama.invisionzone.com/topic/9814-w4-allownces-0-still-owe-taxes/
Employers, do file your W-2s and 1099s by January 31st.
File ALL your payroll tax forms with the IRS, even if you only had a payroll for part of the year. You must still file your Form 940 and 941 or 944 or the appropriate alternative.
Regarding 1099s – if you have rental property, you may not have
been issuing 1099s to your service providers who receive $600 or more. We didn’t
The new Qualified Business Income deduction provisions in the Tax Cuts and Jobs Act say that rentals can qualify as businesses for this special deduction. Although the IRS doesn’t specifically say this in so many words, the feeling in the tax pro community is that if you want the rental to be a business, you should treat it like one. So be sure to issue 1099s to all those service providers this year.
Please make sure to get all your service providers (for all businesses, not just rentals) to give you a signed W-9 form in the beginning of the year, when you contract with them, or before you issue their next check. https://www.irs.gov/pub/irs-pdf/fw9.pdf
People who have changed your entity’s structure due to the new laws – be sure that you have opened a new bank account for that business – and that you closed the bank account for the prior business. And that you have started a new set of books for your new business structure, if applicable.
Please remember to ask questions BEFORE doing things you don’t totally understand – http://iTaxMama.com/AskQuestion
And remember, you can find answers to all kinds of questions about taxes and business issues, free. Where? Where else? At www.TaxMama.com.