To be qualified for deduction, business meal and entertainment expenses must be directly associated with the active conduct of a trade or business, the production or collection of income. People must be able to prove: The amount of the expenditure The time, date, and place of the expense The purpose of the business discussion The identification of the people who participated It can be challenging; however, to understand which meals and entertainment are a valid deduction

The IRS issued (Rev. Proc. 2019-25) with the calendar-year 2020 inflation-adjusted figures for the annual HSA contribution limits. It includes the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans. For 2019, Maximum HSA Contribution Self-only: $3,500, Family: $7,000. Minimum HDHP Deductible Self-only: $1,350, Family: $2,700. HDHP Out-of-Pocket Maximum Self-only: $6,750, Family: $13,500. For 2020, Maximum HSA Contrib

Taxes are a necessary evil - the price we pay for roads, bridges, schools and law enforcement. Audits, on the other hand, feel just plain evil. In an effort to thwart fraud, the Internal Revenue Service audits about one percent of U.S. taxpayers every year. IRS computers are programmed to catch outliers and oddities on returns; any item that falls outside the norm may be flagged so that an IRS employee can review it to see if there's actually a need for an audit. Common red

Franchise Tax Board Extends Filing and Payment Deadlines to June 15, 2020 The CA FTB has issued a press release extending tax filing and payment deadlines that occur between March 15, 2020 and June 15, 2020. The new filing and payment deadline is June 15, 2020 for taxpayers affected by the COVID-19 pandemic. Partnerships and LLCs ----------------> Now due June 15 2020 (Originally due March 15 2020) S Corps and C Corps -------------------> Now due June 15 2020 (Originall

If you are in business, whether self-employed or running a company, you must send a 1099 form (with copies to the IRS) to anyone that you pay money to, unless the payments meet one or more of the following exceptions: - The recipient is a corporation. - You included the payment in a W-2 form (to an employee). - The payment is for a tangible product (office supplies, computers, etc). - The total payments during the calendar year were less than $600. To make sure that you are

Even though you already passed the tax season, every company and employee should also be aware of the upcoming tax deadline in June. 6/10 - Employees Who Work for Tips – If you received $20 or more in tips during May, report them to your employer. You can use Form 4070 . 6/17 - Individuals If you’re a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties

IRS has published “ Notice 2014-21 ” describing how existing general tax principles apply to transactions using virtual currency. Here are a handful of primary contents of this notice. 1. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. 2. Under currently applicable law, virtual currency is NOT treated as currency that could generate foreign currency g

“Audit-proofing” your return means documenting deductions so that you can prove them if you’re audited. Today’s historically low audit rates make it pay to be aggressive. But you should file your return as if you expect to be audited. That way, if it happens, you can support your deductions and walk away a winner. The IRS generally doesn’t require records in specific forms (except for travel, entertainment, automobiles, and gifts- 1). To verify expenses, you need to show wha

Knowing where you fall matters a lot when it comes to filing your taxes. Specifically, if you’re an employee , the company you’re working for is responsible for withholding taxes throughout the year, as well as costs like the employer’s share of Social Security and unemployment taxes. If you’re an independent contractor , you’ll need to be paying quarterly taxes and will be fully responsible for those additional tax costs. It's not as easy as just looking at how many hours y

Normally, taxes are due by April 15 every year, unless that date falls out on a weekend or holiday, in which case it's pushed back a number of days. However, due to the impact of COVID-19, the White House declared to change the tax deadline and announced some changes based on this global-illness disaster. Your payment to the IRS can defer If you owe a payment to the IRS, you can defer up to $1 million as an individual. adding that the payments would be interest free and pen