Businesses: Get ready for the new (old?) Form 1099-NEC

What’s old is new again. The IRS has introduced for tax year 2020 Form 1099-NEC for business taxpayers to report nonemployee compensation of $600 or more. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 in a calendar year for services performed in a trade or […]

Steer clear of the Trust Fund Recovery Penalty

If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Because the taxes are considered property of the […]