Whether you’re self-employed or your business employs individuals who make a modest income, you’ll still need to withhold a percentage of that income and pay it to the IRS each quarter. Going through your taxes every quarter might not make much sense, though, if you’re only withholding a minimal amount.

In these cases, you might wonder if it’s possible to consolidate your tax payments into one annual payment. For some employers, it is indeed possible—and you’ll do it with IRS Form 944.

What is IRS form 944, you ask? Below, we’ll go over everything you need to know about this form, who needs to file it, and how to get tax help if you’re not sure how to proceed with your business taxes this year.

What Is Form 944?

Form 944 is an IRS tax document designed for small employers or self-employed individuals who want to file their tax withholding annually instead of every quarter. If you’re interested in doing so, you must get in touch with the IRS to request Form 944. If you don’t take this step, you won’t be eligible to use the form—instead, you’ll need to use Form 941.

Who Needs to File a 944 Tax Form?

Most taxpayers that use this form do so for convenience. However, the IRS sometimes will notify an employer to file this form instead of Form 941, 941-SS, or 941-PR.

If the IRS instructs you to fill out Form 944, go ahead and do so. You’ll also only need to pay your tax withholding once a year.

Aside from those who get notified, who should file form 944? You should file this form if your tax withholdings amount to less than $1,000 and you want to pay once a year instead of quarterly. You’ll use this form to report:

• Employee-reported tips.
• All wages you’ve paid.
• All income taxes you’ve withheld.
• Your share and the employee’s share of Medicare and Social Security taxes.
• Payroll tax credits.
• Employee retention credits.
• Family leave or qualified sick leave wages.

Employers Who Aren’t Eligible to Use Form 944

Not all employers who want to pay their tax withholdings annually rather than quarterly will be eligible.

Here are a few types of employers who aren’t able to use Form 944:

• Business owners who employ agricultural workers.
• Employers that weren’t notified by the IRS to use Form 944.
• Businesses that utilize household employees.

If you have more questions about your eligibility, consider reaching out to a tax expert that can help.

How to Fill Out Your Federal 944 Form

Did you request Form 944 from the IRS? If so, your next step will be learning how to complete form 944.

You can fill it out online or by printing the form and mailing it to the IRS.

Here are a few basic instructions to help you process the form:

1. Enter your personal details (EIN, name, address).
2. Be sure to place your EIN at the top of page 2 and 3 as well.
3. Report dollars without dollar signs or decimal points.
4. Leave sections blank when the value is zero.
5. Negative amounts should get reported using a minus sign.

Remember to complete all three pages of Form 944 and sign the last page. From there, you’ll submit the return either digitally or via mail.

What’s the Purpose of Form 944?

The main purpose of Form 944 is to help reduce the burden on small employers and the IRS. Small employers benefit from a simplified process and only having to pay their tax withholdings once a year. The IRS benefits by only having to process one return once a year instead of quarterly taxes.

What’s Better for Your Business: Annual or Quarterly Taxes?

At this point, you should have a better understanding of IRS form 944 and what it’s used for. You might not, however, have a firm understanding of what’s better for your business—filing your tax withholdings annually or quarterly.

To determine the answer, it’s crucial for you to estimate the overall amount of tax withholdings you’ll accumulate over the year (and each quarter). If there’s a chance you’ll go over the $1,000 threshold, it makes more sense to stick with Form 941 instead.

If you need more help determining the answer for your specific situation, consider consulting with business tax preparation services that can help you make an informed decision.

Your Business Taxes in 2022 and Beyond

Determining whether you should file Form 944 or 941 is only one aspect of your business tax situation that you’ll need to figure out. There are plenty of other important business taxes to know about and plenty of other tax laws you’ll need to comply with. If you have questions about your tax situation, consider reaching out to an agent here at Tax Group Center for answers.

Do You Have More Questions About IRS Form 944 or Your Taxes?

In a nutshell, IRS Form 944 can help self-employed individuals or certain types of employers. When the total annual liability for withheld taxes won’t exceed $1,000, form 944 can help you file your taxes once a year rather than every quarter. This simplified process saves your business time and money.

Form 944 can be helpful, but it’s not the only IRS tax form you’ll need to fill out to ensure all your business dealings are squared up with the tax agency. If you have more questions about your business taxes, it might make sense to get in touch with a tax expert who can help you meet your needs.

Consider filling out our tax debt form to get connected with the best tax representative we have here at Tax Group Center. We look forward to hearing from you.

Do you prepare and file your taxes? 

If not, you’re in good company. Recent estimates show that about 56% of Americans have someone else prepare their taxes; only about one in three adults file their own.

If you’re among the majority, then you likely prefer the expertise of a tax professional. These experts not only ensure that you stay on good terms with the IRS, but they also help you maximize your returns! 

When considering what type of tax expert is right for your needs, though, things can get a bit complicated. From a CPA to an enrolled agent, there are many options to consider. Read on to learn more about what an IRS enrolled agent does and how they can help you navigate your tax situation.

What Is an Enrolled Agent?

An IRS enrolled agent is a highly skilled tax professional. These individuals have gone through a rigorous educational and certification process to obtain their professional designation. First, they must pass a three-part exam regarding federal tax law. Next, they must submit to a background check and personal tax audit.

Once they are designated as an enrolled agent by the IRS, they are licensed by the Department of the Treasury to help individuals with their federal taxes.

What Does an Enrolled Agent Do?

So, can an enrolled agent give tax advice? Are there other things they can do?

Enrolled agents are authorized to represent taxpayers when it comes to all kinds of tax problems. An enrolled agent can help you file your federal or state tax returns, consult with you, provide solid tax advice, and represent you fully in front of the IRS. If you do get audited or you struggle with payment issues, your enrolled agent can deal directly with the IRS on your behalf.

Since enrolled agents are the highest designation possible, you can rely on their knowledge of tax laws and codes. And as laws change, they’ll stay on top of them—ongoing education is an important part of being an enrolled agent.

Enrolled Agent vs. CPA: What’s the Difference?

Have you already been researching tax experts to figure out which type of professional can best help you with your tax situation? Then you’ve likely run across the term CPA, or certified public accountant. 

These individuals are highly qualified and licensed to give out tax advice, perform accounting responsibilities and audits, prepare your taxes, and give detailed consultations on complex tax issues. CPAs are often a good choice for taxpayers because they can fully represent you before the IRS when it comes to all your tax issues.

Enrolled agents are similarly skilled tax experts. Enrolled agent is the highest credential given out to tax experts by the IRS. With that in mind, enrolled agents are equipped to handle all the issues a CPA can with the added bonus of being able to represent their clients on a federal level, while CPAs are only certified on a state-by-state basis. 

What’s more, CPAs usually focus on the overall financial picture of a person or business, whereas an enrolled agent will focus exclusively on taxes and tax issues alone.

What You Need to Know About Tax Group Center’s Enrolled Agents

Tax Group Center employs enrolled agents to help answer taxpayers’ questions and find workable solutions for common tax issues. Our team focuses on providing service, solutions, and success to each taxpayer. And while many tax services only operate for a few months, Tax Group Center’s enrolled agents provide tax services throughout the year. 

CPAs and enrolled agents aren’t the only types of tax professionals out there. They’re also not the only individuals we have the honor of partnering with in our Tax Group Center team. Along with CPAs and enrolled agents, our team also includes tax preparers, tax attorneys, and other tax enthusiasts. Tax preparers are a group of tax experts that focus exclusively on preparing and filing an individual’s or business’s taxes. A tax preparer will help ensure that you maximize your return, utilize all relevant deductions and credits, and remain in great standing with the IRS.

Our staff is dedicated to helping each taxpayer find success navigating their taxes. We can help you arrange a payment plan with the IRS, or we can help you seek other forms of relief in the form of CNC status or innocent spouse relief. 

The more we know about your situation, the more we can help. Our office’s lines of communication are open 24/7. If you have a tax question, concern, or general inquiry, you can reach out to our office online or via the phone.

Inventory capital, which includes assets that businesses use to conduct their operations, makes up a whopping 7% of the GDP of the entire United States! As you can imagine, the IRS wants to keep a watchful eye over all these assets, and they also want to tax them when possible.

Of course, it wouldn’t make sense to continue taxing a business at the same rate for an asset that isn’t as valuable as it was when it was purchased years ago. That’s why Form 4562, Depreciation and Amortization, exists. It helps businesses identify cases of depreciation and potential amortization, too.

Are you feeling a bit thrown off by these terms and the form itself? Don’t fret! We’re here to go over everything you need to know about Form 4562. Learn more about this form, who needs to file it, and how to fill it out below.

What Is Depreciation and Amortization?

Before we get started on explaining the ins and outs of Form 4562, we need to clarify what exactly depreciation and amortization are.

Depreciation is what happens when you purchase property to use for your business and you plan on using that asset for more than one year. After the first year, most assets lose some of their original value. Depreciation begins as soon as you start using the property or asset as part of your business operations. Depreciation ends when that property fails, you stop using it, or you’ve deducted all the depreciable cost of the item.

While you can use depreciation on most assets and property, you can’t depreciate land. You can, however, use depreciation on copyrights, computer software, vehicles, buildings, equipment, and more.

Amortization is a strategy that helps you stretch out the cost of an asset over the course of its entire life. You can amortize items like the costs of goodwill, intangible assets, and starting a business.

If you have more questions about how various taxes might apply to your business, check out this guide to small business income tax.

Who Should File Form 4562 Depreciation and Amortization Forms?

Do you currently own a business that uses assets and property as part of its operations? If so, you’ll likely need to fill out Form 4562 at some point. After all, assets and properties rarely maintain the same value year after year.

Here is an overview of situations that might require you to file this important form according to the IRS:

• A deduction for a vehicle you reported
• Depreciation on corporate income tax return
• Amortization of costs that began in the tax year you’re filing for
• Depreciation of property you used in the tax year you’re filing for
• A Section 179 deduction
• Depreciation on any vehicle or listed property

If you fall into one of these categories, you’ll want to fill out a depreciation and amortization form. If you have separate businesses or activities that require Form 4562, you’ll need to fill out a separate form for each one.

Form 4562 Instructions: How to Fill out Form 4562

As anyone knows, tax forms can get complicated pretty quickly, so we’ll provide you with the most detailed and accurate Form 4562 instructions to help you along the way.

Before you get started, you’ll need to gather up a few things, including:

• IRS Form 4562
• Any receipts for the assets
• The price of the asset
• The date your business started to use the asset
• The total income you are reporting in the tax year you’re filing for

Depending on how you fill out your taxes, you can submit the form electronically or print it off and send it via snail mail. Either way is acceptable, but it is much faster, easier, and cheaper to fill out your form online.

Next, you need to fill out the basics. Start with the name you used on your return, the business attached to the return, and your identifying number. From there, you’ll move on to Part 1. You’ll put in the following information on each line:

• Line 1: Maximum amount of all property during tax year
• Line 2: Total cost of all property during the tax year
• Line 3: Maximum cost of property before reduction
• Line 4: Any reductions
• Line 5: Dollar limitation (if line 5 is 0, skip to line 12 where you will also enter 0)

In the next section, you’ll describe the property, cost, and elected cost. If you need help with line 3 or this section, check out this IRS worksheet. For additional one-on-one help, consider speaking with a tax expert.

Do You Have More Questions About Form 4562?

Form 4562 can seem pretty intimidating and confusing at first glance. The good news is that you’ll only have to fill out this important form if you’ve purchased property for your business that you plan on using and writing off on your taxes. Since that valuable piece of property won’t retain the same value forever, Form 4562 will come in handy in the years to come. After all, no one wants to continue paying the tax rate allotted for a $50,000 work vehicle if it’s depreciated to only be worth $20,000!

Do your business a favor and stay on top of your asset’s depreciation and potential amortization—it will keep you from paying too much or not enough on your next business tax return.

Do you have more questions about Form 4562 or where to find depreciation and amortization information about your assets? Do you need additional help with your tax situation in general? Here at Tax Group Center, our agents have extensive experience helping both individuals and businesses solve their tax problems and remain in good standing with the IRS. Reach out to our firm now to learn more about how we can help your business thrive.

 

 

More than half (56%) of Americans own cryptocurrency or have owned it in the past. What’s more, recent surveys suggest that about 46.5 million more Americans will join in on the trend during the next year due to incoming stock market changes and instability.

If you’re currently trading in cryptocurrencies or have in the past, then you need to know about Form 8949 before you file your taxes. This important tax form isn’t exclusively used for cryptocurrency trading, though. It’s also used for reporting all sales and exchanges of capital assets. 

Are you currently wondering if you’ll need to fill out IRS form 8949? Learn everything you need to know below.

What Is Form 8949?

IRS Form 8949 gives taxpayers a space to record the sale and/or exchange of their capital assets. This form should be filed along with a taxpayer’s income taxes. In general, it reports the following types of capital assets or other dispositions:

• Any sales or exchanges of a capital asset that wasn’t reported on another form
• Non-business bad debts
• Any gains from conversions of capital assets
• The disposition of interests in a QOF
• Worthlessness of a security

Depending on your situation, you may need to complete even more than one form. If you have multiple transactions, you will need to fill out multiple forms. 

Who Should Use IRS Form 8949?

Now that you have a basic idea of what form 8949 is used for, you’re likely wondering—do I need to file form 8949? 

In general, you may want to file this form if you received:

• Form 1099-S
• Form 1099-B
• Proceeds from broker and barter exchange transactions
• Proceeds from real estate transactions
• Proceeds from the sale of stock, land, or artwork
• Proceeds or losses from cryptocurrency dealings

Before filing your form, take care to closely analyze your form 1099s. Sometimes, all of your transactions will be reported to the IRS on all the forms. If that’s the case, you won’t need to fill out an additional form 8949. 

You’ll only need to fill out the form if there is a discrepancy between your 1099s and the amount you’ll be reporting to the IRS.

Cryptocurrency and Form 8949

One new area for many taxpayers involves cryptocurrency. If you’ve made the move to start trading, buying, and selling cryptocurrency, then you also need to know the basics of cryptocurrency and bitcoin taxes.

In a nutshell, you’ll need to take note of any capital gains or losses throughout the year as you move your cryptocurrency assets around. These movements, gains, or losses will all be reported using Form 8949. Every time you make a cryptocurrency transaction, it’s best to document the fair market value of the currencies at the times of your transactions.

How To Fill Out Form 8949

If you need to fill out Form 8949, then the good news is that our Form 8949 instructions will help simplify the process. To obtain the right document, visit www.irs.gov/form8949. You can download the correct form and either print it off or fill it out on the IRS site.

First, fill out your name and put your Social Security number in the appropriate box.

Next, you’ll want to select only one box for either short-term transactions reported on a form 1099-B that was reported to the IRS, short-term transactions on a Form 1099-B that wasn’t reported to the IRS, or short-term transactions not reported to you on any Form 1099-B. Rather than checking off multiple boxes if they apply, you’ll fill out one Form 8949 for all transactions under each box category.

From there, fill out the chart with the details of each applicable transaction. You’ll list the property, the date you acquired and sold it, the proceeds, costs, amount of adjustment, and gains or losses.

Repeat the process and fill out as many forms as it takes to list out everything.

Remember, if you and your spouse are filing jointly, then you’ll also need to include forms that account for all your spouse’s transactions, too.

Do You Need More Help with Form 8949?

A Form 8949 will help reconcile any differences between the amount of income you end up reporting to the IRS and the amounts reported on Forms 1099-B or 1099-S. Individuals who have sold, exchanged, or traded capital assets would best be served by filling out this important IRS form when filing taxes during the next tax season.

While we’ve provided a short guide on how to fill out your Form 8949, we also understand how challenging taxes and tax forms can be for the average taxpayer. Tax terminology is complex and confusing, and filling out tax forms isn’t a simple process.

If you need more help with Form 8949 or you have specific questions about other tax issues, then we can help. Reach out to us by leaving your information on our contact form or call us at (800) 264-1869. Our tax experts can help you feel confident that you’re filling out the right tax forms with the correct data. We can also help you get back in good standing with the IRS if you’ve recently encountered some tax trouble.

Recent statistics indicate that by 2020, a whopping 78% of brands had already implemented or planned to use AI to serve customers better. One way that businesses are using AI is through over-the-phone customer service. That’s why an AI robot answers the phone for so many companies. 

Sometimes that AI is convenient and helpful…sometimes it’s a nightmare.

When you’re trying to talk to the IRS about a debt you owe or collection efforts against you, for instance, an AI chatbot just can’t provide the help you’ll need. You’ll need to know how to speak to someone at the IRS to get real solutions and answers.

While you might think that such a feat would be straightforward, that’s not always the case. If you need help from a live agent, we’re here to help fast-track the process and get you the help you deserve.

Reaching the IRS Via Telephone

If you’re wondering how to talk to someone at the IRS, your first step will likely be the telephone. Unfortunately, when you do call the IRS, a chatbot AI service will answer. Plus, you’ll only be able to communicate with the agency during support hours, which are Monday through Friday from 7 AM to 7 PM.

If you’re hoping to get in touch with a person, the best time to call is early in the morning. It’s also best to ensure that you have all your documentation, identifying information, and more nearby so you can answer the agent’s questions promptly.

First, you’ll need to dial the IRS customer service line at 1-800-829-1040.

Upon connecting, the system will ask you to choose your language. It will start asking you many questions about why you’re calling. It can be extremely challenging and frustrating to go through these system prompts to get to a live agent, so it might be in your best interests to follow this path forward:

• Choose option 2 for “personal income tax.”
• Choose option 1 for “form, tax history, or payment.”
• Choose option 3 for “all other questions.”
• Choose option 2 for “all other questions.”
• Next, the system will ask you for your SSN or EIN. Do not enter anything. The AI chatbot will attempt to ask you for this information again. Do not enter anything. If you don’t, another menu will come up:
• Choose option 2 for “personal or individual tax questions.”
• Choose option 4 for “all other inquiries.”

This step-by-step process can be extremely frustrating if you attempt to enter the true nature of your call. You might wind up in an endless AI chatbot loop that keeps redirecting you one way or another without ever getting you connected with an actual live agent.

Once you go through this process, though, you’ll finally be able to speak with a human IRS agent who can better handle your inquiries. A good IRS agent will know exactly what tax relief solutions are available in your situation and how you can achieve them.

Can You Chat With the IRS Online?

If you’re experiencing tax problems that you need help with but don’t want to get on the phone, you might wonder how to talk to a person at the IRS via online chat.

Right now, the only type of online assistance available is either AI chatbots or an interactive tax assistant search. You could also take advantage of other online tools like the “Where’s My Refund?” tool, but none of these options will help you get directly in touch with a live IRS agent. As of now, there is no way for you to chat with a live IRS agent online through the IRS portal or otherwise.

What If the IRS Agents Can’t Help Me?

Getting in touch with the IRS isn’t a guarantee that your tax questions and problems will be answered. You may need the help of an experienced tax expert rather than an IRS agent. Tax preparation experts, for instance, can help field any questions you have about filing your taxes, maximizing your return, and remaining in good standing with the IRS. What’s more, a good tax preparation expert can help ensure you remain compliant with the law in your area.

If you really believe you need to speak with an IRS representative and you can’t seem to get in touch, it is possible for you to contact your local IRS office for additional help, too. You can reach these agents over the phone or in person at your local IRS office.

How To Speak to Someone at the IRS

When you have serious tax debt problems or the IRS has started collection efforts against you, the last thing you want to do is repeatedly explain your situation to AI chatbots. Not only will this become frustrating very fast, but it could also leave you confused about your next steps. Even worse, it could give you all the incentive you need to ignore your tax debt completely.

After reading this article, we hope you’ve learned how to speak to someone at the IRS without the confusion and frustration of dealing with chatbots.

Dealing with a live IRS agent might be just as stressful as dealing with a chatbot, though! When that’s the case, you may want to look for other options and other ways of finding the solutions you need. Here at Tax Group Center, we’ve helped countless clients learn how to talk to someone at the IRS and get the solutions they’re after. Reach out to our office now to get in touch with a live representative from Tax Group Center who can help you meet your tax goals this year.

Did you know that over 3.3 million Americans were delinquent on child support payments in mid-2020? Since the economy has been in a nosedive since then, it’s safe to say that even more Americans have fallen behind.

While getting behind on your obligations isn’t the worst offense, it can come with consequences.

Receiving a Tax Topic 151 letter is one of those consequences. Falling behind on your child support payments isn’t the only reason you might receive this important IRS notification, though. If you do get an IRS 151 letter in the mail, you need to understand what it is and what it means for your future. 

Below, learn more about what Tax Topic 151 means and what to do if you get this IRS notification.

What Is a Tax Topic 151 Letter?

Are you still waiting on your tax refund? Did you receive a Tax Topic 151 letter in the mail, or did you receive a Tax Topic 151 alert when you attempted to log into the IRS’s “Where’s My Refund” tool? If so, then you’re likely feeling pretty confused.

In a nutshell, you’ll ific situation.

What Does Tax Topic 151 Mean for Taxpayers?

If you received this notice, then you can expect either a portion or all of your tax refund to get offset. In other words, you won’t be getting your full tax refund.

Why Did I Receive a Tax Topic 151 Letter?

If you received this notice, then you owe a significant debt. For the majority of taxpayers, that means they owe money in the form of:

• Child support payments
• Tax debt from previous years
• Federal student loans you’ve defaulted on

When you owe money for these reasons, the IRS is legally authorized to withhold part or all of your tax return money in order to settle your debts. The letter you receive regarding the situation will explain why you received a notice and what actions the IRS plans to take next.

Identifying the Debt You Owe

Another important detail that will be in your letter is the type of debt and the amount of debt you owe. Identifying this information is crucial. If you disagree with any of the information outlined in the letter, take note of those details for later.

If you do agree with the type of debt and the amount of debt you owe, you’ll still have the opportunity to resolve it. For instance, if you have tax debt, then you might be able to resolve your offset by agreeing to an installment plan with the IRS instead. Getting on a payment plan will not only help you access your tax refund, but it will also help you begin to pay back your tax debt burden.

Is Tax Topic 151 Good or Bad for Your Finances?

When you initially see a Tax Topic 151 error or letter, it’s normal to feel upset and frustrated. After all, it’s like losing money that you were counting on! It’s not all bad news, though, as this letter gives you the opportunity to finally handle debts you’ve been putting off. If you can’t pay the overall debt right away, you’ll still be able to get back in good standing by starting to pay it down.

What Steps Should You Take Next?

If you’ve been notified about your refund offset, then you really only have two options for moving forward. You can resolve the debt with the entity or party you owe the money to or appeal the IRS’s decision.

Where to Find More Tax Topic 151 Refund Information

Are you looking for more Tax Topic 151 refund information? Whether you opt to appeal the IRS offset or you want to resolve the debt with the entity you owe, it’s in your best interests to talk to a tax specialist about how to move forward. A tax expert can help you consider your options moving forward. They can help you decide what course of action to take moving forward.

Your Right to Appeal

Do you disagree with the IRS offset, the debt outlined in your letter, or something else? If so, it’s important to understand your right to appeal. This right, along with the next steps to take to appeal, should be outlined in your IRS letter. Regardless, it’s still in your best interests to consider consulting with a tax attorney about your situation before you move forward with an appeal.

Learning More About Tax Topic 151 and Other Tax Issues

Many Americans rely on their tax refunds to make ends meet, and an unexpected Tax Topic 151 notification can be quite financially unsettling. If you’ve recently received this notification in the mail, there’s a chance that your taxes will end up getting offset. The only things you can do to prevent an offset is to either resolve the debt that’s causing the issue or file an appeal with the IRS.

Do you have more questions about your Tax Topic 151 letter? Do you currently owe a tax debt that you’d like to resolve, or have other important tax questions you need answered? Our team is here for you. Fill out our online form today to get in touch. We look forward to helping you!

The pandemic may have brought about hardship for many, but it also provided a space for some to realize their dreams. A record-setting 4.4 million new businesses opened their doors during the height of the crisis in 2020—if you were one of those amazing entrepreneurs, then congratulations on making your dreams come true!

Owning a business is no easy feat, though. Not only will you be the sole person responsible for your company, but you may also be responsible for multiple employees. What’s more, you’ll need to keep an eye on every financial transaction, payment, expense, and more to ensure that you report everything accurately to the IRS.

If you have employees, you must file Form 941 four times a year. Below, we’ll go over everything you need to know about filling out a 941 tax form to ensure that you remain compliant.

What Is Tax Form 941?

So, what is Form 941? This specific tax form is designed for businesses with employees. The form reports wages and taxes for all your employees each quarter. In other words, you’ll need to report this information and fill out this form four times a year.

You’ll report the amount of money you withheld from your employees. You’ll report the income taxes, Social Security taxes, and/or Medicare taxes that you withheld. Along with filling out the form, your quarterly tax payments will also be due. Your total tax liability will be determined based on the total amount of taxes due in the current quarter you’re reporting and the total deposits you made during the previous quarter.

How to Fill Out Form 941

You can fill out your Form 941 either electronically or on paper. You can download the appropriate forms directly on the IRS website; you can decide whether you want to print out the forms or fill them out on your computer and submit them directly to the IRS website.

Are you struggling to identify the right forms? Do you need a little extra help? Check out our tax help resources or contact one of our agents for more assistance.

Who Should Use Tax Form 941?

You need to file Form 941 each quarter if you own a business and pay wages to an employee. It’s your responsibility as an employer to provide the IRS with accurate information about the employee’s wages and withholdings. Failing to do so means you’ll face financial penalties and a possible tax audit.

When to Use Tax Form 941

You need to use this tax form when you’ve paid employees, withheld taxes, and need to make your employer contribution to those tax liabilities. 

If your total yearly withholding taxes will come to less than $1,000, then you might not need to file a Form 941—you might be able to file a Form 944 instead. Otherwise, you’ll need to use tax Form 941 each quarter.

Form 941 Deadlines

Form 941 is typically due on the last day of the month following the end of each quarter. In other words, the due dates for 2022 are as follows:

• First quarter: April 30, 2022
• Second quarter: July 31st, 2022
• Third quarter: October 31st, 2022
• Fourth quarter: January 31st, 2023

If the filing due date falls on a weekend or holiday, you should file the forms on the next possible business day.

One of the biggest tax problems faced by taxpayers is failing to meet IRS deadlines, especially for forms that are due quarterly. If you don’t file the right forms on time, then the IRS is authorized to levy financial penalties against you. In the beginning, you could face fines of up to 5%. If you continue to fail to file, then that rate could go up as high as 25% of your total tax liability.

If you file the right forms but fail to pay in time, then you’ll get fined about .05% each month—up to 25% of all the taxes you owe. On top of these fines, you’ll also face ever-increasing interest payments.

Form 941 Instructions

Your tax form will include information about your employees, the total wages you’ve paid out, the taxes you’ve withheld, payroll records, tips, and more. Since so much gets covered, Form 941 instructions can get complicated fast. 

Here’s a brief overview of how to fill out the form:

• Put your EIN, name, and address in the first box
• Check off the quarter you are reporting in the second box
• In part 1, box 1, enter the wages you’re paying
• Put the total amount of employee compensation in box 2
• Put the total amount of taxes you withheld in box 3
• Next, you’ll go through a series of questions where you’ll need to input the proper taxable amounts collected from employees
• Complete the details about your business in part 3
• Sign the form and print your name on part 5

Are you worried that you can’t meet your tax obligations? Don’t let that fact discourage you from filing your paperwork. There are many tax relief solutions that can help you work out an arrangement with the IRS.

Do You Need Help With IRS Form 941 or Other Tax Issues?

Now that you’ve read through this article, you should feel more confident when it comes to filling out Form 941 and ensuring you’re compliant. Despite that, Form 941 won’t be your only concern. There are several other tax codes, forms, and nuances you’ll need to remain compliant with to ensure your business runs smoothly.

Do you have more questions about tax Form 941? Do you have other questions about other tax requirements you might face in 2022? The good news is that you won’t have to go far to find the answers you seek. For more free resources, keep browsing our blog.

If you’d prefer to speak with a highly qualified and skilled tax expert, then we welcome you to reach out to our office. Our team is made up of tax attorneys, certified CPAs, enrolled agents, and CTEC certified tax consultants. Contact us directly at (800) 264-1869 to learn more about how we can help you solve all your tax problems in 2022 and beyond.

The IRS has been under a lot of strain since the pandemic. Not only has the agency been tasked with keeping up with every citizen’s tax return situation, but they’ve handled each and every stimulus payment.

The IRS isn’t the only one suffering, though. 2021 has been labeled the most challenging year for taxpayers. That’s because they’ve had to keep up with stimulus payments, advanced tax credits, new streams of side income, self-employment taxes, unemployment benefits taxes, and even new rule changes.

If you have a business or received a lump sum payment, then you’ll also need to make sure you report that income accurately. That means you need to know about Form 8300 and what cash transactions are reported to the IRS. 

Keep reading to find out everything necessary about reporting big sums of money and filing a Form 8300.

What Is Form 8300?

At the most basic level, Form 8300 is an official report to the IRS stating that you received $10,000 in cash or more as a payment. While this amount may seem excessive at first glance, there are a lot of reasons why you might get such a high cash payment. Those reasons might be:

• The sale of real property
• Pre-existing debt payments
• Rental of real or personal property
• Making or repaying a loan
• Reimbursement of expenses
• Sale of goods or services

Form 8300 rules dictate that you must also report multiple payments within a single year that amount to more than $10,000. While the Form 8300 instructions mention cash payments, it’s important to understand that “cash” also includes bank drafts, traveler’s checks, money orders, and cashier’s checks.

IRS Form 8300 Requirements

Per federal law, your business is required to file Form 8300 within 15 days of receiving any cash payment over $10,000. Filing this information with the IRS helps the agency track cash transactions. 

If you’re wondering what cash transactions are reported to the IRS, then it’s important to understand a new law that went into effect on January 1, 2022. Now, bank transactions reported to the IRS will include everything over $600!

With that in mind, it’s more vital than ever to keep a cash transaction report that monitors every cent of your business’s cash flow. That way, any questions that come up from the IRS can get answered quickly and accurately.

What Happens If a Form 8300 is Filed on You?

One of the most common tax problems happens when a taxpayer is uninformed or misinformed about how to file or report certain types of income. If you’ve paid a substantial amount of cash and didn’t report it, then you might be wondering—what happens if a Form 8300 is filed on you?

First, don’t panic! You should be notified about the filing—the business is required by law to notify you. Plus, you’ll likely know about the situation in advance because you’ll need to provide your TIN to the other party when they file a Form 8300. The other business will be penalized if they don’t attempt to get your TIN when they report the transaction.

How to File Tax Form 8300

A proper IRS Form 8300 reference guide wouldn’t be complete without explaining how to file a Form 8300. Since many Americans do their taxes online, it is possible for businesses to file a Form 3800 completely electronically. Doing so is free; all you have to do is visit the BSA E-Filing system and complete the proper forms. If you’d prefer, then you can print it out and mail it directly to the IRS.

Do you need more detailed information about how to fill out Form 8300 or another tax form? Check out our tax help resources section for more information. If you still can’t find what you’re looking for, then it might be best to reach out directly to a tax expert who can take a look at your personal tax situation and help.

Consequences of Failing to File a Form 8300

If you fail to file a Form 8300 within a timely manner, then you’ll face specific consequences. First, you’ll get fined $100 for each occurrence of failing to file a Form 8300. You could also face additional financial penalties if an investigation reveals that you deliberately attempted not to file a Form 8300 in order to defraud, mislead, or omit information from the IRS. Intentional disregard can lead to fines of up to $250 per violation.

Further, if the IRS determines that you are intentionally being noncompliant and willfully refusing to file a Form 8300 or committing fraud, then they have the legal authority to levy criminal consequences against you, too. You could get charged with a felony offense! Not only does that likely mean you’ll spend time imprisoned, but you could also get fined upwards of $25,000!

Tips to Help You File an IRS Form 8300 Like a Pro

So, how can you remain compliant with the IRS’s many tax laws? One of the best tips we can give is to keep detailed records of all your business transactions. Flag any ones that exceed $10,000, and be sure to note that you filed a Form 8300, too.

If you’ve been slammed with penalty after penalty, then don’t feel like your situation is hopeless. There are plenty of tax relief solutions to explore that could help you reduce or potentially eliminate some of your tax debt. Speak with an expert if you’re interested in learning more about these potential solutions.

Do You Have More Tax Questions?

Do you believe you’ll need to fill out a Form 8300 this year? Are you still unclear on the process, or do you have additional tax questions that weren’t addressed in this article? If so, then it’s important to reach out to a tax expert that can answer your questions one on one.

Leave your tax worries behind with expert guidance from a team that has 30 years of experience working with the IRS. Contact us today to get more information about how we can help you face any tax challenge like a boss!

Did you miss out on the special COVID-19 tax-deductible donations credit in 2021? Thanks to the CARES Act, Americans could deduct a whopping $300 for cash contributions they made to qualifying public charities in 2020.

The bad news is that that special credit won’t be available for 2022 and beyond unless Congress decides to extend it. The good news is that there are other tax-deductible donations you can make regardless of the year.

If you want your donation to have the maximum impact and help you along with your taxes, you’ll need to make sure that you donate to a qualified organization. Next, you’ll need to document your contributions and note them when you file your taxes. 

Do you need more information about which donations are tax deductible? Follow along below; we’ll show you everything you need to know.

Are Donations Tax Deductible?

If you’ve never made a donation before, you may have more questions about why and how these charitable contributions are tax deductible. So, before we go further and discuss the topic, we need to answer the question: Are donations tax deductible?

In a nutshell, yes, many donations are tax deductible if they are made to qualified organizations. There is also a charitable donations tax deduction limit that businesses and individuals need to be aware of. The reason why the IRS decided to make charitable contributions tax deductible is because it subsidizes giving. This provides benefits to those who need it and lowers the cost of making donations. Tax deductions, in theory, would increase giving, which would allow charities to help even more people.

Qualified Organizations: An Overview

Not all donations are tax deductible, though. According to IRS tax code section 170(c), only contributions to qualified organizations will count. The timing of your donation also makes a difference; to be tax deductible, you’ll need to make that donation within the tax year you’re filing for. 

For instance, if you made a donation in 2020, then you’d need to file that donation on your 2020 tax return when you file it in 2021. If you don’t or you forget to note the donation, then you won’t be able to get the deduction on future returns.

So, what types of organizations are covered under the IRS codes? Let’s go over a few of the most commonly asked about organizations below:

Are Political Donations Tax Deductible?

One common question that taxpayers often ask is, whether political donations are deductible. Deductible political contributions are largely a myth. The truth is that political donations aren’t tax deductible at all.

Citizens and businesses are welcome to make political donations, but they won’t qualify as tax deductible no matter who you donate to. Similarly, any volunteer time or supplies you provide to a political organization cannot be deducted from your taxes, either.

Are Church Donations Tax Deductible?

The short answer is yes. Per IRS regulations, all churches, synagogues, and religious organizations are considered “qualified organizations.” Of course, these organizations must operate solely for religious and educational purposes to be considered a church, synagogue, or religious organization.

To deduct these donations, you’ll need to itemize the contribution on your IRS Schedule A form. This is important to know, though, because many taxpayers opt not to go through and itemize all their deductions. Instead, the common taxpayer will simply take the standard deduction set by the IRS. If you take the standard deduction, you won’t be able to deduct the donation.

Are GoFundMe Donations Tax Deductible?

In 2022, donating to those who need it is as simple as making a few clicks on the Internet. GoFundMe is one of the most popular internet donation sites where people can share their stories and ask for help. While similar platforms have helped countless citizens get back up on their feet, GoFundMe is not one of the qualified organizations listed by the IRS. Donations made to GoFundMe campaigns are considered “personal gifts,” rather than charitable donations. In other words, they are not tax deductible.

Limitations on Deductions

You won’t be able to deduct 100% of your charitable contributions. According to the IRS, charitable donations can be deducted up to 50% of your AGI without regard to net operating loss. AGI stands for adjusted gross income.

The 50% threshold applies to:

• Public charities
• Private operating foundations
• Certain private foundations that distribute the contributions to charities and private foundations within 2 ½ months of receiving it
• Certain private foundations that use the money and put it into a common fund

Charitable contributions to certain organizations, like fraternities, veterans groups, and cemetery organizations, are limited to deductions up to 30% of your AGI.

Tips to Ensure You Can Deduct Your Contribution on Your Taxes

To ensure that you can deduct your contributions, always make sure you’re donating to a qualifying organization first. Another important tip is to always keep track of your donations. After all, if you ever get audited, you’ll want that documentation to back up your claims. Finally, don’t forget to include volunteering or buying supplies for these qualifying organizations, too.

How to Make Tax-Deductible Donations

There’s a big reason why so many corporations make tax-deductible donations. These donations not only provide much-needed help to citizens and organizations in need, but they also provide some benefits to the organization making the donation.

If you’re hoping to make such a donation this year, then it’s important to understand what organizations qualify for the tax deduction. Next, you’ll need to make sure that you document the donation and make a note of it when you file your taxes.

Do you have more tax questions? Would you prefer to discuss your potential tax-deductible donations with a tax expert? If so, then our team of tax professionals can help. Fill out our online submission form or call us directly at (800) 264-1869 to discuss your situation in more detail with our experts.