National Small Business Week will take place May 3-9, 2020. Nominations are now open for SBA's Small Business Week Awards! In addition to the typical national awards - Small Business Person of the Year, Exporter of the Year, 8(a) Graduate of the Year - the SBA Illinois District has also added some new categories this year, including Young Entrepreneur of the Year, an Encore Entrepreneur of the Year, a Rural Small Business of the Year, and a Family-Owned Business of the Year. Nomination forms and guidelines are available at www.sba.gov/IL and www.sba.gov/NSBW . The deadline to apply is January 7, 2020.

Answers to 5 Questions About Overtime Rules

There's no law-federal or state-that caps the number of hours a person can work (other than for minors). But if you are an employer, be sure to understand that working past 40 hours triggers overtime rules for certain employees. Some of these rules have been around for years, while others are new. Here's what you need to know for 2020 and beyond.  Read more.  

The Internal Revenue Service today issued guidance for business travelers, updated to include changes resulting from the Tax Cuts and Jobs Act (TCJA). 

Revenue Procedure 2019-48, posted on IRS.gov, updates the rules for using per diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home.  Taxpayers are not required to use a method described in this revenue procedure and may instead substantiate actual allowable expenses provided they maintain adequate records.

Although TCJA suspended the miscellaneous itemized deduction that employees could take for non-reimbursed business expenses, self-employed individuals and certain employees, such as Armed Forces reservists, fee-basis state or local government officials, eligible educators, and qualified performing artists, that deduct unreimbursed expenses for travel away from home may still use per diem rates for meals and incidental expenses, or incidental expenses only.

The revenue procedure makes clear that TCJA amended prior rules to disallow a deduction for expenses for entertainment, amusement, or recreation paid or incurred after Dec. 31, 2017.  Otherwise allowable meal expenses remain deductible if the food and beverages are purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment.

The IRS annually issues guidance providing updated per diem rates; Notice 2019-55 provides the rates that have been in effect since Oct. 1, 2019.

IRS Launches Taxpayer First Act Webpage

The Taxpayer First Act of 2019 expands and strengthens taxpayer rights. The Act also requires the agency to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security.

The IRS is requesting commentary from taxpayers, including those in the small business and self-employed industries. Those interested in providing feedback on reorganization or other components of the TFA are encouraged to send it to [email protected].

The Internal Revenue Service today reminded employers and other businesses that wage statements and independent contractor forms still have a Jan. 31 filing deadline.

 

Before the Protecting Americans from Tax Hikes (PATH) Act, employers generally had a longer period of time to file these forms. But the 2015 law made a permanent requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31.

 

Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.

 

The early filing date means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can avoid penalties by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.

 

Get a jump on the due date

Employers should verify employees' information. This includes names, addresses, and Social Security or individual taxpayer identification numbers. They should also ensure their company's account information is current and active with the Social Security Administration before January.  If paper Forms W-2 are needed, they should be ordered early.

 

Automatic extensions of time to file Forms W-2 are not available. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809, Application for Time to File Information Returns.

 

For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.