How to Get a Federal Employer Identification Number | businessnewsdaily.com

September 1, 2023August 31, 2023 ~ knjohn ~ Leave a comment

A federal employer identification number (FEIN), also known as a tax identification number, is issued to entities that do business in the United States. The FEIN is a unique nine-digit corporate ID number that works the same way a Social Security number does for individuals. A FEIN is required for businesses to get a business license.

Read on to learn what a FEIN is and how to get one.

What is the purpose of a FEIN?

A FEIN is a way for the IRS and other government entities to identify and track business entities’ tax and financial activities. It’s required to file tax returns, as well as to set up retirement accounts and health accounts to offer medical and dental benefits to employees, among other uses.

IRS to End Unannounced Visits to Taxpayers | Small Biz Trends

August 1, 2023July 31, 2023 ~ knjohn ~ Leave a comment

The Internal Revenue Service (IRS) announced it will cease the majority of unannounced visits to taxpayers. This move aims to decrease public confusion and improve safety for taxpayers and IRS employees alike.

The change, which takes immediate effect, will replace spontaneous visits by IRS revenue officers with scheduled meetings organized via mailed letters, marking a significant break from the IRS’s decades-long practice. Revenue officers, who are tasked with visiting homes and businesses to aid in resolving account balances, often through the collection of unpaid taxes and unfiled tax returns, will now be armed with prior appointments instead of surprise visits.

The adjustment comes as part of a larger effort to revamp IRS operations following the implementation of the Inflation Reduction Act last year and the introduction of the new IRS Strategic Operating Plan in April.

IRS Updates Dirty Dozen Tax Scams List | Small Biz Trends

March 24, 2023March 23, 2023 ~ knjohn ~ Leave a comment

Beware Phishing and Smishing

Phishing is a term coined over a quarter of a century ago and is a play on the spelling of fishing, and the similarity of using lures to fish for sensitive information that can be used to commit fraud. Such phishing scams usually occur via email, with a typical tactic being to bulk-send spam emails in the hopes of finding an unsuspecting victim.

Smishing is an amalgamation of phishing and SMS, as it relates directly to phishing attacks that happen via text message.

Scammers ‘Pose as the IRS’ During Tax Season

The IRS Commissioner, Danny Werfel, further explained the dangers of phishing and smishing scams, saying: “Email and text scams are relentless, and scammers frequently use tax season as a way of tricking people. With people anxious to receive the latest information about a refund or other tax issue, scammers will regularly pose as the IRS, a state tax agency or others in the tax industry in emails and texts. People should be incredibly wary about unexpected messages like this that can be a trap, especially during filing season.”

Unlike last year, this tax season has been going smoothly | CNN Business

March 17, 2023March 16, 2023 ~ knjohn ~ Leave a comment

The past two tax-filing seasons were fraught with aggravations, delays, last-minute changes and huge backlogs at the IRS. But by comparison, this year’s tax-filing season has been going relatively smoothly, tax preparers say.

“After a few years of pandemic-related updates, mid-tax season IRS guidance, last-minute tax law changes and more, the ‘quiet’ is a welcome change to many,” the National Association of Tax Preparers said in a statement

Indeed, the most recent filing season statistics from the IRS indicate more returns are being processed and more refunds are being issued than at the same point last year.

For example, the IRS reports that as of the week ending March 3 it had sent out 11% more refunds than it had during the same week a year ago. Even though the IRS has processed more refunds at t

Can I file my taxes now? IRS gives guidance on state refunds, payments| Fast company

February 15, 2023February 14, 2023 ~ knjohn ~ Leave a comment

Earlier this month, the Internal Revenue Service (IRS) abruptly advised millions of taxpayers to hold off on filing their 2022 tax return. The reason? A number of states had issued one-time tax rebates, refunds, and other special payments last year, but the IRS was not sure if some or any of these payments were taxable at the federal level.

Now the agency has clarified the situation by issuing updated guidance on the matter, stating that “taxpayers in many states will not need to report these payments on their 2022 tax returns.”

This will no doubt come as a relief to millions of taxpayers, especially those who had filed their returns before the IRS said to hold off. At the same time, the IRS guidance contains some caveats. If you received one of these state-level payments in 2022, here’s what to know:

Estimated Tax Payments: What to Pay and When | Small Biz Trends

February 15, 2023February 13, 2023 ~ knjohn ~ Leave a comment

Estimated tax payments can be confusing, but they don’t have to be. Understanding the basics of estimated taxes and what you need to pay is key to making sure you stay in compliance with the IRS. Keeping up with estimated taxes throughout the year will help you avoid paying too much (or too little) come tax day. In this article, we’ll discuss when estimated taxes are due as well as how much you’re required to pay.

What are estimated tax payments?

Estimated tax payments are periodic payments made to the government by individuals or businesses during the year, in order to pay their expected tax liability. These payments are typically made quarterly in four equal installments and are estimated based on an individual’s or business’s expected income not subject to federal tax withholding minus deductions for the current year. The purpose of estimated tax payments is to ensure that the tax owed is paid in a timely manner, rather than as a lump sum at the end of the year, avoiding underpayment penalties.

IRS Announces 2023 Mileage Reimbursement Rate | Small Biz Trends

January 3, 2023January 2, 2023 ~ knjohn ~ Leave a comment

2023 IRS Mileage Reimbursement Rate

For 2023 the IRS mileage reimbursement rates for businesses, individuals, and other organizations are as follows:

65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022. 1
4 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022

12 red flags that your new job offer may be a scam | Fast Company

June 8, 2022June 7, 2022 ~ knjohn ~ Leave a comment

Between the Great Resignation and the layoffs of the pandemic, there are a lot of people looking for new jobs these days. And that’s presenting a ripe opportunity for scam artists.

The Internal Revenue Service (IRS), on Monday, issued a warning to Americans about bad actors who use fake job offers to steal money and personal information, a continuation of a heart-of-the-pandemic scam. By gathering that information, the scam artists are able to file fraudulent unemployment claims in their name, which not only costs the government, but also could significantly impact the victim’s tax bill and eligibility for future benefits.

“They promise you a job, but what they want is your money and your personal information,” says the FBI.

5 Last-minute (No Judgement) Tax Tips | Entrepreneur

April 12, 2022April 9, 2022 ~ knjohn ~ Leave a comment

If you haven’t finished your taxes yet, don’t panic.

You’re much more likely to make mistakes if you’re under stress and feeling rushed. Take a deep breath and set aside some time to tackle your taxes with a clear mind.

We’ve put together five last-minute tax tips to help you avoid common mistakes, save money, and set yourself up for greater financial success.

1. Know the facts

In the U.S., personal tax returns are due April 18, 2022. Unlike in 2020 and 2021, the IRS is sticking to its deadline this year.

But there are still pandemic-related complexities to consider. Work with your tax advisor to review any stimulus payments or Advance Child Tax Credits you received to ensure you received the appropriate amounts.

IRS tax refund update: Recovery rebate error notices sent | Fast Company

August 12, 2021August 9, 2021 ~ knjohn ~ Leave a comment

Remember what it felt like when your teacher marked something as “incorrect” on your homework, but then the correction itself turned out to be incorrect? Well, millions of American taxpayers may feel like they’re in that very situation right now.

The Internal Revenue Service (IRS) has issued some 5 million “math error notices” that neglected to inform people of their full legal rights, according to an update from the Taxpayer Advocate Service this week. The letters, sent as a result of corrections the IRS made to people’s tax returns, made no mention of a key detail: that taxpayers only have 60 days to dispute the error in question.