New guidance for information reporting penalties (1099s)

The IRS issued a new notice last week (2017-9). This notice provides guidance on the de minimis safe harbor from information reporting penalties under Secs. 6721 and 6722 and the payee election not to have the safe harbor apply. To keep this clear for everyone….it applies to 1099 reporting. It was established by section 202 …

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Write Off Your Building Improvements under the Safe Harbor for Small Taxpayers

The IRS issued regulations in 2013 & 2014 trying to bring clarity to the many conflicting rules in the area of capitalization vs expensing of business property. These new regulations are commonly called the “tangible property and repair regulations” or TPR regulations. The new regulations, which apply to tax years beginning in 2014, have many …

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How is Compensation Defined?

Compensation in its simplest form is pay in exchange for services rendered, although gross pay includes additional forms of compensation aside from the hourly rate paid to employees. In reference to 401(k) plans, the term “pay” becomes more complex. Under the statutory safe harbor regulations an employer is required to include additional forms of compensation …

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New Reporting for Certain Ponzi Scheme Losses

Financial headlines in the last several years have been filled with stories of investors whose losses have occurred as a result of Ponzi Schemes.  In 2009 the U.S. Securities and Exchange Commission identified 20% of the fraud cases they investigated as Ponzi schemes.  Investment News reported that 9,244 billion in losses from Ponzi schemes were …

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Remitting Contributions Timely

The Department of Labor regulations states that employee contributions should be remitted to the plan as of the earliest date on which such contributions can reasonably be segregated from the employer’s general assets, but no later than the 15th business day after the end of the month from the date on which such amounts are …

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