Tax payers are alarmed when they receive a notice and rightly so! These notices should be addressed immediately because there is a deadline for the response. CPA’s are used to the notices and understand the urgency.
Franchise Tax Returns
If a company is incorporated in the state of Texas, they must file a franchise tax return. A CPA will determine what type of franchise tax return needs to be filed. Unfiled tax returns create a status of “Not in good standing”. It is public information and can affect whether a customer will give you their business.
- IRS has tightened their requirements for filing 1099’s
- There are specific questions on the tax returns related to 1099’s
- If you pay an individual non-employee compensation > $600, you must issue a 1099 in order to take the deduction
- Penalty of $500 per person