Author: stonesbookkeeping1

The IRS is launching a program to allow taxpayers to file directly through the IRS and this coming tax year it will be piloted in 13 states. I am interested to see how this goes as there are already numerous filing solutions for the taxpayer and why does the IRS need or want to get into the middle of this fray. It can be really difficult to get help from the IRS on most tax issues so how will this work if you are filing through them. Will the clients be able to get help when they need it and who do they call for assistance? Here is the article if you want to read some more:

https://content.govdelivery.com/accounts/USIRS/bulletins/37641eb?reqfrom=share

The IRS extended the period of time for replacement of livestock sold off due to drought. For most of us this has no effect as we don’t raise cows or chickens. For our brothers and sisters that raise livestock this could be huge as the drought wains and they replenish their herds. Here is the IRS guidance on this issue:

https://content.govdelivery.com/accounts/USIRS/bulletins/372cd61?reqfrom=share

Much of what we learn about starting a business we learn as we go. There are numerous services out there trying to charge you to get some items set up as you begin. Keep in mind that much of what you need you can do by yourself, and this will save you significantly on your start up costs. One example of this is companies offering to get you the Employer Identification Number that you need. They try to charge hundreds of dollars to get this accomplished, when you can do this yourself for free right here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online . When I tried to gather this there were pages of ads before I could get to the actual link. The major thing you need to do before getting the EIN is to determine your business entity type or structure. Here is a brief description and several of the types:

• Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more members.
• Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders.
• S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: A business structure allowed by state statute. If a single-member LLC does not elect to be treated as a corporation, the LLC is a “disregarded entity,” and the LLC’s activities should be reflected on its owner’s federal tax return as a sole proprietorship.

Once you have settled these two items taxes will be your next project. Here is some great direction for the tax compliance from the IRS: https://content.govdelivery.com/accounts/USIRS/bulletins/36e086e?reqfrom=share

Form 8300 changes as of 1/1/2024. Those required to file this form will have to start filing it electronically as of the beginning of the new year. This form is used to report cash receipts of 10000$ or more. Traditionally this form was filed by mail on a paper form. There are exceptions and exemptions to this new rule and you can check those out here: https://content.govdelivery.com/accounts/USIRS/bulletins/36d99c6?reqfrom=share

There are numerous rules regarding self employment, this can be really complicated when the business owner is in the military or a military spouse. It is important to know how to report your earnings correctly, and how and where to report income earned from the business. This is further complicated by the proliferation of the gig economy. The IRS provides some great information on how tax homes effect these calculations here: https://content.govdelivery.com/accounts/USIRS/bulletins/36d61f0?reqfrom=share

Remember that you can prepare your own tax returns with a bit of research and diligence, but sometimes it is better to utilize a professional and focus on your own business.