An Employer Identification Number (EIN) is a 9-digit number issued by the IRS for the purposes of identifying a particular business’ tax account. The EIN format is XX-XXXXXXX..
EINs are used by employers, sole proprietors, corporations, partnerships, non-profits, trusts, estates of decedents, government agencies, certain individuals, and other business entities. These entities must provide their EIN on every form/communication that is sent to the Internal Revenue Service (IRS) or the Social Security Administration (SSA).
Note that you should have only 1 (one) EIN for the same business entity. If you do not have an EIN by the time your tax return is due, enter “Applied For” (and the date that you applied) wherever an EIN is requested. Do not use your Social Security Number (SSN) in lieu of an EIN.
The form of business you operate determines what taxes you must pay and how you pay them. There is a lot of tax information to know and understanding all of the details can get tricky so we suggest you let PK Tax Services help you. The following are the five general types of business taxes.
During National Small Business Week, the IRS focuses on educating employers about the employer credit for paid family and medical leave created by the Tax Cuts and Jobs Act passed last year. Employers may claim the credit based on wages paid to qualifying employees while they are on family and medical leave.
Do you have an idea and a small business but need money to move forward? There are many avenues to go down to find funding but often government grants go untapped. Here's what you should know...
Federal government grants are created through legislation that is passed by the U.S. House of Representatives (a.k.a. Congress) and signed into law by the President. These grants are financed with taxpayer dollars and are available for a variety of purposes, depending on the type of applicant and the government agency. Currently, there are 26 Federal agencies that provide government grants.
Millions of people enjoy having hobbies — whether it’s photography, antiquing, craft making, collecting coins, or breeding horses. It usually costs money to support a hobby, but in some cases, your hobby can also make you money.
If you have a hobby that is also a source of income, you’re required to report the income on your Federal tax return. In order to properly report your income and expenses to the IRS, you must ascertain whether the activity is classified as a hobby or a business.
This article explains the IRS rules for determining if an activity qualifies as a business, and what restrictions apply if the activity is not a business.
What you need to know about accountable and nonaccountable plans
If you have employees, you can reimburse or give them an advance or allowance for business expenses, including but not limited to ordinary and necessary transportation, business entertainment, travel, meals and lodging expenses. These types of payments can either be treated under an accountable or nonaccountable plan. Below, are the requirements for both types of plans.
The holiday season is upon us. Even if we aren't following traditions of the season, giving gifts to clients and employees makes everyone involved feel good. Gifts that range from flower arrangements to gift cards to personalized trinkets will all leave a lasting impression on the receiver and as well as the giver. But with each gift comes a hidden cost - the IRS's rules for what is deductible and how to list it on your tax return.
If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Following are the limits and rules for deducting the cost of these gifts.