Posts Tagged ‘IRS’

Confused about reporting the cost of health insurance coverage for employees? Starting in tax year 2011, the Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Fortunately for many small businesses, employers filing fewer than 250 Forms W-2 are exempt from this requirement.

Be sure to review payments subject to be reported on Form 1099-Misc. Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. (These payments are being reported by the card issuers and third-party payment networks on Form 1099-K.)

The Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

It is important not to disregard a wage levy from the IRS or you may find your company liable for the employee’s delinquent taxes. Recently, a corporation that failed to obey an IRS wage levy on one of its employees was liable for the employee’s delinquent taxes and for a penalty under Code Sec. 6332(c)(2).

The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.