September 1, 2015
The Trade Preferences Extension Act of 2015 was recently signed into law. Part of this new law includes a provision that more than doubles the cap on penalties from $1.5 million to $3 million for 1) failure to file correct tax information returns and 2) failure to provide payee statements. In both cases, fines have been increased from $100 to $250.
These changes are effective for returns and statements required to be filed after December 31, 2015.
The impact of these increased penalties is likely to be significant given that the penalties apply to a wide range of information returns and statements, including W-2s, 1099s, and Forms 1042 and 1042-S (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). In addition, the IRS has formed special units to address information reporting issues both within the Large Business and International (LB&I) Division and within the Office of Associate Chief Counsel (International). These actions may suggest heightened IRS interest in information reporting audits that could lead to adjustments to which the increased penalties would apply.
In light of these changes, it is critical that businesses be vigilant about filing information returns and providing payee statements to all applicable parties. If you have any questions about these requirements related to your business or your personal situation, please contact our firm.
Small business owners in many communities offer downtown trick or treat events. Take advantage of this opportunity to build your business reputation. Involvement in local events goes a long way with both existing and prospective customers—indicating a vested interest in your community. Find creative ways to make your business stand out this trick-or-treat season. We hope the following suggestions will spark fun promotional ideas:
October marks Women’s Small Business Month, and we are happy and proud to recognize women in business both locally and around the world. Successful business women of the past and present continue to forge new paths for female entrepreneurs. We celebrate all those who are breaking the glass ceiling and serving as role models and mentors to women everywhere.
For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.