New Reporting Requirements for Business

Businesses are now required to report to the IRS whenever there are changes to contact info – responsible party, address etc.

This from the Form 8822-B instructions:

Beginning January 1, 2014, any entity with an EIN must file Form 8822-B to report the latest change to its responsible party. Form 8822-B must be filed within 60 days of the change. If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Complete Form 8822-B as appropriate; use applicable boxes 8a through 9b to report any changes to the identity of your responsible party. 

For more check out the form and instructions here.

How to get your Wage Withholding Tax just right

The IRS recently released a helpful video on their YouTube channel.

This video explains how to use their Withholding calculator to get your withholding just right.

If you are a wage earner this video and the calculator will help you understand how it all works.

The IRS removed this video. It is pretty old after all.

Back to the Ferris Mansion

Recently, Val-U-Corp, a Resident Agent in Carson City Nevada, moved to the Ferris Mansion.  Since we have been happily subletting from them for about the last 10 years and were able to, we moved with them. 

The Ferris Mansion is  a wonderful historic building in Carson City and amazingly it was our business meeting location before we moved to the Evergreen Center to Val-U-Corp. So this is full circle for us and a very happy occurence.

So – we are back at 311 W Third Street Carson City NV 89703.

Business Record-keeping – Everything you ever wanted to know but were afraid to ask

What kind of Bookkeping system do you need?

Do you need to use a Double Entry system?

Is a set of books enough to satisfy the IRS or do you need more?

The answers might surprise you:

You don’t need any specific type of system.  But you do need to be sure to keep supporting documentation. 

Have you always wanted to know what kind of record keeping system the IRS requires? If so Take a look at this guide and for more detailed info this IRS guide to the subject

IRS Small Business and Self Employed Tax Info Page

The IRS has created a page on their web site that has they say is “a one-stop resource for information” for Small Business and Self-Employed.

You can find forms, find out how to apply for an Employer ID number (EIN), and learn about many topics that are relevant to starting and running a small business as a Sole Proprietor.

Hopefully they will keep it current and up to date.

Give us a call if you have any questions about what you read.

Tips – You may want to brush up on the rules

The IRS issued a bulletin and Revenue ruling that might answer many questions you  have on tips.

For example:

Did you know that when a restaruant imposes a minimum tip that technically it is not a tip but a service charge?

That you (the employer) can get stuck if an employee fails to their report tips to you?

If you have a restaurant and want to brush up on the rules rearding tips you definitely want to read this

A slight reduction in Payroll Taxes

It isn’t a lot but every little bit helps.

The Federal Unemployment Tax Act surcharge of 0.2%, which was originally enacted in 1976, expired on June 30, 2011.

This means that the FUTA rate for employers went to 6.0% starting on July 1, 2011.

The IRS says that they are currently working to revise Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates for 2011 and they say that the form will be available before the Jan. 31, 2012, due date.

The expiration of the surcharge will not affect current or future unemployment benefits but slightly reduces what employers have to pay.  That is always good news!