Reminder: Quarterly payroll tax return due date of October 31st is approaching.
With the October 31st quarterly payroll tax return due date just two days away, the Internal Revenue Service urged business owners to file their returns electronically and take advantage of the speed and convenience of electronic filing.
The IRS recommends electronic filing, or e-filing, of IRS Forms 940, 941, 943, 944, or 945, which are used to report information related to employment taxes.
The IRS acknowledges receipt of e-filed returns within 24 hours. The information on the tax return is retained and stored by the IRS, and is, therefore, accessible to filers and tax professionals 24 hours a day, seven days a week. Unlike filing a paper return, e-filing provides assurance to the filer that the tax return reached its intended destination and is not misplaced or lost in transit through the mail.
Anyone requiring help filing payroll tax returns may call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com for experienced assistance and sound tax advice on this and any tax matter.
IRS issues final regs on reporting requirements for life insurance Ks. . .
On October 25th, the Internal Revenue Service issued final regulations on the new information reporting requirements for certain life insurance contract transactions. The final regulations also include definitions pertinent to reportable policy sales and their exceptions.
New § 6050Y authorizes these new reporting requirements. The provisions were added to the Internal Revenue Code by the Tax Cuts and Jobs Act (TCJA), enacted in 2017. The final regulations generally apply to reportable policy sales and payments of death benefits occurring after December 31, 2018.
The final regulations allow taxpayers additional time to satisfy any reporting obligations for reportable policy sales or death benefit payments made before the final regulations were published.
One intended purpose of the reporting requirements is to assist taxpayers in the business of selling life insurance contracts to report any gain from these transactions properly.
Every individual who acquires a life insurance contract, or any interest in a contract, in a reportable policy sale during the tax year must file a return. These individuals must also furnish written statements to each payment recipient and the issuing party named in the return filed with the IRS. Once the issuing party receives this statement, it must furnish a written statement to the seller and file a return with the IRS.
Additionally, the final regulations provide guidance on the new reporting requirements applicable to anyone who makes a payment of reportable death benefits. The regs also detail how to calculate the amount of death benefits the taxpayer can exclude from gross income.
Any taxpayer seeking guidance on any new IRS regulations, including those relevant to life insurance contracts, may call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. Call 212-490-0704.
