Tame the Paper Tiger

As your mailbox begins to overflow with numerous “Important Tax Document” envelopes, remember we’re here to take the stress out of tax time!

*~~~~~~~~~~ ~~~~~~~~~~ New Reporting Requirements ~~~~~~~~~~~ ~~~~~~~~~~ *

*Credit Card Transactions and Form 1099-K: *

If you had a side hustle, be aware the threshold for third-party settlement organizations (e.g., PayPal, Venmo, CashApp, etc.) to issue 1099-K forms is $5,000 for 2024. While business income has always been taxable, these lower-threshold 1099-K forms will allow the IRS to be able to track income received by very small businesses. As always, be sure to provide us with any and all tax documents received*.*

Business Clients – New OSHA Posting Requirement

As of February 1, 2025 you may be required to post a summary report of the prior year’s workplace injury report in an area accessible to employees. If you are not already tracking workplace injuries on an OSHA 300 Log, be sure to start doing so. Here is a link on the standard interpretation of this requirement: https://www.osha.gov/laws-regs/standardinterpretations/2003-12-18-0

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According to the MetLife and U.S. Chamber of Commerce Small Business Index for the fourth quarter of 2024, about half of business owners say regulatory compliance costs too much time and money. The vice president of small business policy at the U.S. Chamber of Commerce notes, “Too many regulations cause big headaches for small business.” Whether you own a small business or are simply dealing with a small mountain of papers, below are some tips to help you organize your documents.

· Designate a special folder for your tax documents. This folder can be a physical folder or a folder on your computer. The IRS says you can have any record-keeping system you choose so long as the records are clear, accurate and include all the necessary details. Make sure this folder is readily accessible so it’s easy to use.

· Write notes on your documents. You may not remember in ten months why you kept a receipt. And, receipts for business expenses must include amount, location, date and reason in order to be valid.

· Don’t wait until tax time! Sort mail and email right away when you receive it.

· Use our handy-dandy tax organizer as a reference so you don’t forget any important items! If you’re unsure whether to send in a particular document, err on the side of caution, and send it to us.

~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Dates to Remember ~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~

• BOI reporting – currently still optional – stay tuned!
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• February 10th – Form 4070 due from tipped employees
• March 17th – S-Corp and partnership business tax returns due

“Question everything, be curious forever and never forget that life is about people.” — Frank Gehry, architect