IRS has doled out two business tax warnings, both about things companies should be doing and things they shouldn’t.
This tax season, IRS is putting businesses on notice with some not-so-subtle reminders about compliance issues.
Take a look at the latest updates to ensure your company steers clear of penalties — or even audits — this year.
Stop taking this deduction
Heads up, if your company is still claiming the Domestic Production Activities Deduction, IRS wants you to stop it.
That tax break ended with the Tax Cuts and Jobs Act for taxable years after Dec. 31, 2017. But many of your peers are still trying to take it, says Doug O’Donnell, commissioner of IRS’s Large Business and International Division, in a recent statement.
Make sure you report this
Be sure your team is familiar with Form 8300, Report of Cash Payments Over $10,000 … and uses it.
IRS issued this requirement reminder on its website recently. And the Taxman wants it filled out properly, so it released videos on how to do so, along with the most common mistakes it sees on the 8300.
Some of you have extra incentive to heed these latest business tax warnings. Remember, IRS plans to increase audits of smaller businesses and their investors by approximately 50% in 2021, according to IRS officials.
No better time than the present to make sure every i is dotted and t crossed. Plus it couldn’t hurt to go over audit etiquette with your finance team members.