MRG & Associates LLP

10/01/2023

- https://www.irs.gov/newsroom/irs-updates-frequently-asked-questions-about-form-1099-k

📌On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of more than $600.

💰If you accept payment cards (for example, credit card or debit cards) as a form of payment for goods you sell or services you provide, you will receive a Form 1099-K for the gross amount of the payments made to you through the use of a payment card during the calendar year.

⌛️This reporting requirement has not changed, and there is no minimum reporting threshold for these payments to trigger a reporting requirement.

⚠️IRS Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. Information on your Form 1099-K may be used to compute your gross receipts or sales. You should follow the return instructions on the form you are completing to report your gross receipts or sales.

✏️Note: The American Rescue Plan Act lowered the threshold to trigger a reporting requirement on a Form 1099-K to from more than $20,000 to more than $600 (regardless of the number of transactions). The IRS issued Notice 2023-10, which temporary delays the enforcement of the lowered reporting requirement. However, you may receive a Form 1099-K in error at the lower threshold, despite Notice 2023-10.

🔌Entities required to file Form 1099-K, Payment Card and Third Party Network Transactions, must also furnish a statement to the payee with the same information reported to the IRS.

⏰Statements may be furnished in paper format (i.e., Copy B of Form 1099-K, Payment Card and Third Party Network Transactions) or electronically with the consent of the payee in accordance with Treas. Reg. 1.6050W-2. The statements must be furnished to the payee by January 31, of the year following the transactions.

14/06/2022

Here’s what businesses need to know about the enhanced business meal deduction.

The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction.

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

To qualify for the enhanced deduction:
The business owner or an employee of the business must be present when food or beverages are provided.

Meals must be from restaurants, which includes businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption.

Payment or billing for the food and beverages occurs after December 31, 2020, and before January 1, 2023.

The expense cannot be lavish or extravagant.
Grocery stores, convenience stores and other businesses that mostly sell pre-packaged goods not for immediate consumption, do not qualify as restaurants.

Employers may not treat certain employer-operated eating facilities as restaurants, even if they operate under contract by a third party.

Here’s what business owners need to know about certain costs:

- The cost of the meal can include taxes and tips.
- The cost of transportation to and from the meal isn’t part of the cost of a business meal.

Entertainment events: Business owners may be able to deduct the costs of meals and beverages provided during an entertainment event if either of these apply:

- The purchase of the food and beverages occurs separately from the entertainment.
- The cost of the food and beverages is separate from the cost of the entertainment on one or more bills, invoices, or receipts.
- Businesses should review the special recordkeeping rules that apply to business meals.

For More information - Please see Publication 463, Travel, Gift, and Car Expenses.

Here’s what businesses need to know about the enhanced business meal deduction - See https://go.usa.gov/xJ5vr

Tax Tip 2022-91, June 14, 2022 — The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction.

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https://www.eventbrite.ca/e/109892086188?aff=efbneb

BFUTR 2020 (Virtual Experience) Tech Summit - Presented by TD

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🆘❌ Systemic Racism ❌🆘

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