Jim Payne's Tax Blog in Gainesville, FL

The IRS’s Form 1099-K reporting requirements continue to evolve, with important changes for 2024. In IRS News Release IR-2023-221, the agency delayed the implementation of the controversial $600 reporting threshold for third-party payment platforms. Instead, a $5,000 threshold will apply for the ...

As an S Corp owner-employee, understanding how the IRS views money taken out of your business is crucial. The IRS considers all withdrawals as wages first, until they exceed “reasonable compensation” for your role. This ensures payroll taxes are paid on earnings tied to your labor.Wages vs. Distr...

The IRS is sharpening its focus on specific areas of tax compliance for 2025, particularly addressing significant non-compliance issues. Recent announcements reveal the agency’s commitment to using enhanced resources and data analytics to ensure fair enforcement. Here's a look at some key areas w...

Let’s talk about one of the toughest challenges you can face as a business owner: falling behind on payroll taxes. When cash is tight, and the bills keep coming, it’s easy to feel trapped in a deep hole. The worst thing you can do? Keep digging. If you can’t pay your payroll taxes, you may have t...

If you're a shareholder in an S Corporation, ensuring that your compensation is reasonable is crucial to avoid IRS scrutiny. But how do you calculate and document reasonable compensation? Follow this straightforward process to establish a well-supported, defensible compensation figure using publi...

For S Corporation owners, balancing compensation can be a tightrope walk. Unlike other business structures, S Corporations offer a unique tax advantage: distributions to shareholders are not subject to payroll taxes. But here’s the catch—if you’re actively working in your S Corporation, the IRS r...

If you’re running a business, you know how important it is to stay on top of your finances. But when it comes to payroll taxes, things can get incredibly stressful. Payroll taxes aren’t just another line item—they’re trust fund taxes that the IRS expects you to handle carefully. Falling behind on...