Forms 1099 filed on paper should decrease in 2023 thanks to the Information Returns Intake System. The Information Returns Intake System (IRIS), a new online portal that the IRS announced on Wednesday, now allows businesses to submit Form 1099 series
In the U.S., there is no value-added tax (VAT) on the federal or state level. However, most states have a “sales and use” tax system that creates an ultimate liability for the purchaser to pay a tax that can reach
NEXUS Nexus, a connection between a business and the state, must exist for a state to impose income tax. States establish the rules to use when determining how much in-state activity creates a nexus by a business. Often, this tax
When a corporation liquidates, the value of the assets it holds as of the date of liquidation is included in its taxable income for that year. U.S. shareholders then include the value of cash and other assets they receive on
Dividends are payments made by a corporation to its shareholders from current or accumulated earnings. Dividends can be paid in cash, other assets, and even the company’s stock. The corporation does not get a tax deduction for these payments, but
Meals during travel will be reimbursed as travel expenses based either on per diem allowance rates or actual amounts expensed (see Travel Expenses section for the rules on per diem allowance reimbursements). Business meals and entertainment are only reimbursable if
A. EMPLOYEE BENEFITS Employee benefits refer to forms of compensation given to employees that go beyond their usual wages or salaries. These additional benefits encompass a diverse array of advantages, including health insurance, retirement plans, paid leave, disability insurance, and
In addition to cash payments, many of those who work for a technology start-up company receive some form of equity-linked compensation that often has the earnings potential much larger than the actual compensation received. RESTRICTED STOCK. It is the stock
Starting January 1st, 2022, R&E expenses are not deductible in the year incurred. They need to be capitalized and amortized over 5 or 15 years depending on whether research is done inside or outside the U.S. R&E expenditures are research
There are two main ways to compensate service providers in the U.S.: as employees and as independent contractors. The employees receive wages subject to payroll taxes. Employer’s expense on top of the wages is roughly 8%. Employee’s share of payroll