Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure or recreation.
Either way, if they are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions.
Summertime is common time for wedding bells to ring, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.
Identity thieves can prey on anyone, at any time. Here are some helpful tips for taxpayers to know when it’s really the IRS or not.
Email, text and social media
The IRS doesn’t make initial contact through email or social media channels. Some common electronic scams thieves use are:
Sending phishing emails to taxpayers
Posing as an IRS social media account to contact taxpayers about a fake bill or refund
Texting taxpayers about fake "tax credits" or "stimulus payments"
These messages will often direct taxpayers to click fraudulent links they claim are IRS websites or other online tools.
REMINDER!
If the IRS needs to verify taxpayer identity, they would mail you a 5071C or 4883C letter. Requests to share or verify information over the phone or email are signs of suspicious activity. We advise you against confirming anything over the phone.
RS Tax Tip 2024-79, Oct. 1, 2024
The deadline for taxpayers with an extension to file is around the corner — on Tuesday, Oct. 15. It's important for taxpayers to gather all their records and get copies of any missing documents before they sit down to prepare their return, whether they are filing on their own or working with a professional tax preparer.
Effective January 1, 2024, Maine has mandated a retirement plan opportunity for Maine employees, introduced as the Maine Retirement Investment Trust (MERIT). Employers should expect to receive notification from the program in early 2024 with information on registration and compliance.
The Corporate Transparency Act (CTA), which goes into effect in January 2024, will require your business to report information about ownership to the Government.
The CTA is not a part of the tax code; instead, it is a part of the Bank Secrecy Act, a set of federal laws that require record-keeping and report filing on certain types of financial transactions.
IRS Tax Tip 2022-159, October 18, 2022
An Offer in Compromise can be an effective way individuals and businesses to settle federal tax debt. This federal program allows taxpayers to enter into an agreement, with the IRS, that settles a tax debt for less than the full amount owed.
IRS Tax Tip 2022-158, October 17, 2022
The next tax season seems far away, but this is actually the perfect time for taxpayers to review their withholding and estimated tax payments. Because federal taxes are pay-as-you-go, it’s important for taxpayers to withhold enough from their paychecks or pay enough in estimated tax.
IRS Tax Tip 2022-155, October 11, 2022
October is Cybersecurity Awareness Month. The IRS and the Security Summit partners warn everyone to be on the lookout for scams and schemes that could put sensitive tax data at risk, especially IRS-themed texting scams aimed at stealing personal and financial information.
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