In the Black: February 2024
The Great 1099 Fake Out of 2023 (and 2022)
So first, let’s talk about things you may or may not know about 1099-k’s. A 1099-K is a tax form that an electronic payment processor sends to you and the IRS at the end of the year to report how much money you made. Think credit card processors, paypal, vemo, you get the idea. Historically, these are only sent out when you make $20,000 or more. So if you have a little Etsy shop, or you sell on The Real Real, or maybe you rent out your place on AirBNB every now and then- you likely haven’t ever gotten one of these.
Cue the drama. The IRS is BIG MAD that people haven’t been reporting this taxable income so they planned in 2023 to issue these for people making $600 or more PER YEAR in any of these platforms. Which would mean that LOTS of people would be getting these unexpected tax forms. You won’t be surprised to know that people lost their minds- and got the IRS to delay rolling this out by a year. For fun, the exact same thing happened in 2022. They got everyone all freaked out and then at the last minute- said never mind.
Why should you care? Because the IRS swears that 2024 is the year and that they are doing to require these processors to report total yearly payments over $5,000 (they upped it). So you should be thinking about how you are going to report payments.
FinCen: Why many small businesses have file with the Financial Crimes Enforcement Agency starting in 2024
This is for all you LLC’s, S Corps, C Corps and PC’s out there. There’s a new filing we’ll be doing for you this year with FinCen. Why, you might ask, are they having small guys report up to the Financial Crimes Unit?
We’ll be taking care of this for our clients with 2023 taxes, so nothing to worry about if you aren’t money laundering or evading taxes. When you register your business on the state level- the Feds don’t necessarily have access to who OWNS the company. Is another filing annoying? Sure, but you know what’s more annoying? The $600 Billion that goes uncollected every year- and you guessed it- ups the taxes on those of us who pay our taxes!
When you are ready to get mad: Read This. Then join me in advocating for the IRS to get fully funded and catch these dummies.
Dates to know:
If your business was created or registered before 1/1/2024:
you have until 1/1/2025 to do this filing.
If your business is created or registered between 1/1/2024 - 1/1/2025:
you have until 90 days from the creation notice date to do this filing.
Tax Deadlines: Public Service Announcement
Partnerships and S Corps: due March 15th DEADLINES:
February 23rd to ensure call availability
March 1st to ensure filing by deadline (reviews will be over email)
Individual returns, SMLLC's, Sole Props and C Corps: due April 15th DEADLINES:
March 22nd to ensure call availability
March 29th to ensure filing by deadline (reviews will be over email)
Unrelated PSA: Please draft Gen X women, we are ready
Aysha Returns!
If you’d been with us for a while , then you remember Aysha- she was the original office manager, billing department and head accountant wrangler for many years here at Liz Is All Biz. Since she left she’s gone on to study accounting. So when we needed to cover Justine’s maternity leave- (yup- tax baby 2024 is expected this summer )- we knew exactly who to call.
In the words of the immortal Tag Team: I'm takin' it back to the old school. You’ll see her in the Tax Desk email this year- keep it all running!