The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning January 1, 2019. The rates will be: Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage … Read more
Notice 2018-77, 2018-42 IRB: The IRS has issued a new notice carrying the “high-low” simplified per-diem rates for post-Sept. 30, 2018 travel. The high-cost area per-diem increases $3, and the low-cost area per-diem increases $4, from the prior simplified per-diems. Background. An employer may pay a per-diem amount to an employee on business-travel status instead of … Read more
The Internal Revenue Service today urged high-income taxpayers and those with complex tax returns to check their withholding soon to avoid an unexpected tax bill or penalty when they file their 2018 federal income tax return in 2019. The Recently Passed “Tax Cuts and Jobs Act” made major changes to the tax law, including increasing the … Read more
IRS reminder: Deadline Dec. 31 for most retirees who must make required retirement plan distributionsThe Internal Revenue Service reminded retirees born before July 1, 1948, that they usually must take distributions from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31. The payments, called required minimum distributions (RMDs), are normally made by … Read more
Eligible small business startups can now choose to apply part or all of their research credit against their payroll tax liability, instead of their income tax liability, according to the Internal Revenue Service. This new option will be available for the first time to any eligible small business when filing its 2016 federal income tax … Read more
Classifying a worker as an employee or an independent contractor. An employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Employers normally do not have to withhold or pay any taxes on payments to independent contractors. Here are two key points for small business … Read more
If you are due a refund, there is no penalty if you file a late tax return. Taxpayers who owe tax, and failed to file and pay on time, will most likely owe interest and penalties on the tax they pay late. To keep interest and penalties to a minimum, taxpayers should file their tax … Read more