The crescendo of the entire football season is coming up in two weeks, aka the Super Bowl (Sunday, February 11). It’s probably one of the most watched events in America.
This year will be no exception… and not just because Taylor Swift will be there cheering on her man. It’ll be a 2020-rematch, and the Chiefs will be on the hunt to win back-to-back Super Bowls (something only 8 teams in NFL history have accomplished).
Whether you watch to cheer on your favorite team, chuckle at the commercials, or see Usher perform at half-time — or if you decide not to watch it all — you know it’s happening. Everyone’s talking about it.
It’s the same way you know when tax filing season is happening. It’s being talked about everywhere you turn (even Turbo Tax is airing commercials during football games to remind you).
And now that tax season has officially begun, as of Monday, January 29th, let me also deliver this little reminder that your 1099 forms for non-employee compensation — like the 1099-MISC and 1099-NEC — are due to the IRS and form recipients by Wednesday, January 31.
It’s probably too late to avoid penalties if you’re just now getting them out. For the future, make a plan that prevents that from happening for other important deadlines (like getting out the other 1099 forms by February 15th, or waiting too long to get your tax information in order to start the filing process).
The TCG Accounting team is really good at helping our clients stay on top of those deadlines and making sure you get tax filing under way.
Why not set up an appointment to get that process started?
218-623-6050
In other tax news, you’re also now getting access to more online features at IRS.gov. As part of last year’s Inflation Reduction Act (IRA), the IRS has rolled out new online business accounts for business owners. Similar to the existing individual accounts, these accounts are intended to provide businesses with more visibility and ease of communication with the IRS.
What specifically are these IRS business accounts good for? And should you get one? Well, that’s what I’m writing about today…
IRS Business Accounts & Your Business
“Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.” – George Herbert
I’ll start with the first question you’re probably asking:
Should I get one of the new business accounts the IRS is now touting?
Short answer: Yes, if you qualify (of course). Only certain entities are eligible. But it’s a useful, new tool for your business.
The new IRS business accounts are now available to sole proprietors (as of Oct 2023), and S corps and partnerships (as of Dec 2023). These accounts allow owners, partners, and shareholders to view account information, transcripts, notices, and also make payments, among other things.
One big benefit for businesses is the ability to view business tax transcripts directly within the account. This means you can verify tax data for loans and applications, and stop making multiple transcript requests.
For ease of information sharing, you can give your accountant access to the account as well.
To create an IRS business account, you’ll need your employer identification number (EIN). If you don’t have one of those, you can apply for one online. The business account application process also involves answering some security questions and verifying your identity with a photo ID. Set aside 15-20 minutes to complete the application.
Some of the beneficial uses for your business (not comprehensive):
- Verify that the IRS has your proper business name and address
- Make tax payments
- Check to see if an entity issued you a 1099
- Review the status of your quarterly estimated tax payments
- Authorize powers of attorney
- Read your IRS notices
- View tax transcripts
- Set up authorized users, like your accountant
And the word is that more features are still to come, along with access to more types of business entities, assuming IRS funding for these improvements remains available. With Congress you never know, so we’ll keep you posted.
This is just one more tool for your toolbelt as you manage your business taxes and financials in partnership with your accountant. Kudos to the IRS for making this happen. And I’d love to hear your feedback about your experience setting up, and using, this new account.
In your corner,
The TCG Accounting Team
