The most frequently asked tax questions related to Tax Forms
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Form 2553Asked Friday, September 17, 2021 by Tiffani Y.
You’re on the right track, but you need to do a little more. Please be sure to read the instructions for Form 2553.
If you are filing the Form 2553 now (not as an attachment to the Form 1120S), you must write “FILED PURSUANT TO REV. PROC. 2013-30” in the top margin of the first page of Form 2553.
For your explanation, I would not plead ignorance. IRS doesn’t take that well, as they say that everyone should read the law and be aware of the requirements. Instead, it’s better to give them a tangible reason or reasons why you did not timely file. If COVID played a role, explain that. Or, if you or someone in your family had medical issues, death, etc., explain that. I think even the narrative you explain (finding employees, finding a building, build-out, etc.) could be part of an explanation.
Also, you should mail the form certified mail with return receipt requested, to have proof that you mailed the form and that the Internal Revenue Service received it. IRS still has a backlog of several months. Plus, they are losing things. So you need to protect yourself.
Trying to think outside the box, you may ask yourself if filing the S election with an effective date back to 09/15/2020 is the best thing to do. For example, did you timely file an extension back on 03/15/21? Also, the deadline for the 2020 Form 1120S just passed on September 15, 2021. You may wish the effective date to be 01/01/21. Just something to consider – not trying to add to your stress.
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Employer Reimbursements - Accountable PlanAsked Tuesday, February 28, 2012 by an anonymous user
To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules.
Your expenses must have a business connection—that is, your expenses must be deductible under the rules for qualifying work-related education.
You must adequately account to your employer for your expenses within a reasonable period of time.
You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time.
If your expenses are more than your reimbursement, you can deduct your excess expenses on Form 2106.
Employer Reimbursements - Nonaccountable PlanAsked Tuesday, February 28, 2012 by an anonymous user
You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement.
Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. You must include them in your income.
You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
1099 - Reporting RequirementsAsked Tuesday, January 31, 2012 by an anonymous user
As a self-employed 1099 income earner, you are responsible for the self-employment tax on top of your regular tax on your net profits. The 2013 SE tax is 15.3%.
You can deduct ordinary and reasonable business expenses against your 1099 income. So you are only taxed on your Net Profit, not your total 1099 income.
1099-MISC - OverviewAsked Thursday, January 26, 2012 by an anonymous user
There are more than 15 different types of Forms 1099, each for reporting different kinds of income.
These are forms used by the Internal Revenue Service to track individual income that isn't reported on a W-2 as wages.
Contract workers and investors usually have more income on Forms 1099s than on a W-2.
The business and entities that make these payments have the obligation to prepare and file Form 1099.
1099-MISC - Recipients Required InformationAsked Thursday, January 26, 2012 by an anonymous user
The IRS recommends the employer request the taxpayer complete Form W-9, W-9S, or W-8 (if a foreign person) to request his taxpayer identification number.
1099-MISC - Filing RequirementsAsked Thursday, January 26, 2012 by an anonymous user
Gross proceeds of $600 or more paid to an Attorney.
Any recipient with federal or state withholding regardless of amount.
At least $10 paid for Royalties or Broker payments in lieu of dividends or tax-exempt interest
Any fishing boat proceeds.
Generally, payments to corporations (except of Legal Services) are exempt from the filing requirements.
1099-MISC - Mailing Address - Austin TexasAsked Thursday, January 26, 2012 by an anonymous user
Dept of the Treasury
Austin, TX 73301
1099-MISC - Mailing Address - Kansas City MissouriAsked Thursday, January 26, 2012 by an anonymous user
Dept of the Treasury
Kansas City, MO 64999