Congratulations to Team Macatax!
Our team was recently awarded an A+ rating with the Better Business Bureau. We thank our wonderful customers for so many kind and glowing reviews that helped us get the award. Our team continues to keep a focus on customer service, the customer experience, education, and personal knowledge in order to provide our customers with only THE BEST!
US Department of Treasury announces BOI registration
A new law went into effect on January 1, 2024. Companies registered with the Secretary of State must now registered with the Federal Government as well. For more information on “FinCEN” (Financial Crimes Enforcement Network) and “BOI” (Beneficial Ownership Information) see below:
IRS announces 2023 Form 1099-K reporting threshold delay
Following feedback from taxpayers, tax professionals, and payment processors and to reduce taxpayer confusion, the Internal Revenue Service delayed the new $600 Form 1099-K reporting threshold requirement for third party payment organizations for tax year 2023 and is planning a threshold of $5,000 for 2024 to phase in the new law.
Third party payment organizations include many popular payment apps and online marketplaces.
The agency is making 2023 another transition year to implement the new requirements under the American Rescue Plan that changed the Form 1099-K reporting threshold for payments taxpayers get selling goods or providing a service over $600. The previous reporting thresholds will remain in place for 2023.
What this means
This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.
This phased-in approach will allow the agency to review its operational processes to better address taxpayer and stakeholder concerns.
Taxpayers should be aware that while the reporting threshold remains over $20,000 and 200 transactions for 2023, companies could still issue the form for any amount.
It’s important to note that the higher threshold does not affect the actual tax law to report income on your tax return. All income, no matter the amount, is taxable unless it’s excluded by law whether a Form 1099-K is sent or not.
State of Texas announces changes to Franchise Tax reporting
In July 2023, the legislature passed Senate Bill 3, which increased the no tax due threshold and eliminated reporting requirements for certain entities. In response, the Comptroller’s office has changed the way some entities have to report for franchise tax purposes.
For reports originally due on or after Jan. 1, 2024, a taxable entity whose annualized total revenue is less than or equal to $2.47 million is no longer required to file a No Tax Due Report. However, the entity is still required to file Form 05-102, Public Information Report or Form 05-167, Ownership Information Report. The report due date remains May 15, 2024.
We have reached QuickBooks ProAdvisor Platinum Level
As of January 1, 2024, our team was awarded with the Platinum level ProAdvisor tier. We are proud of our team for all of their hard work and dedication to our clients. We strive to stay current on all the new features and processes. To learn more about bookkeeping visit our Business Services Page.