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Flat Rate Bookkeeping and Taxes, Inc.
20812 Ventura Blvd. Suite 200
Woodland Hills, CA 91364
747.263.9016 flatratebook@gmail.com
I got hired to help out a company after the bookkeeper and one of their colleagues pulled a fast one on the owner, swiping six figures over a three-year stretch.
Once I started poking around their bank accounts and credit cards, it became clear that the owner was perhaps a bit too trusting.
You see, the bookkeeper had all the passwords, and the owner didn't know any of them. That raised some red flags right there.
Yep, the IRS has decided to pause the implementation of Form 1099-K for 2023.
What this means is that, for 2023, the IRS is reverting to the previous threshold. Anyone earning $20,000 or more and conducting 200 or more transactions will receive a 1099-K in January 2024.
This older requirement is now back in effect for 2023.
If the IRS had implemented the new law, starting in January 2024, most businesses and individuals would likely have received a 1099-K.
A similar delay occurred last year, but it was on December 22, 2022, just before Christmas, when the IRS quietly announced the delay of the 1099-K for 2022.
Now, beginning in 2024, the threshold will be set at $5,000. This means that in 2024 if you were paid through a third party like Venmo, Paypal, Square, Cash App, or numerous others, you will receive one or more 1099-K forms in 2025.
I have a strong feeling that the $5,000 threshold will remain in place for 2024 and beyond, rather than the $600 threshold that the IRS had originally intended to implement.
So, let's rejoice and be happy!
For more information directly from the IRS visit their website.
- Steph
The IRS has withdrawn from processing Employee Retention Credit (ERC) claims due to numerous scams.
I first learned about the ERC in 2021 after a few of my clients received PPP loans. Soon after that, the IRS began discussing the ERC.
I spent a lot of time researching and came to the conclusion that my clients did not qualify.
Fast forward to 2023, and according to the IRS, scammers are now in full swing! Some of their snail mail correspondence looks quite official.
But don't let a scammer convince you that you're going to get $10,000 per employee! Those days are over!
If someone has persuaded you to claim the credit, and your claim hasn't been processed yet, I strongly recommend you discontinue the process while you still can.
What's particularly concerning about the ERC claim is that it may require you to alter your payroll records (specifically, the 941 forms), which are crucial for payroll. If you start tampering with your 941 forms, you're likely to encounter problems!
I repeat, DO NOT APPLY FOR OR RESPOND TO ANY LETTERS OR EMAILS REGARDING THE ERC!
The scammers cannot assist you!
Consider yourself warned!
-Steph
Recently, I met a business owner who handles everything himself, much like I do (ugh).
I could see that he could benefit from my assistance.
He has about 10 vehicles and 20 employees and does everything himself, even payroll. It's a recipe for burnout in his case.
Although he appears to be a young guy, the stress of managing his business around the clock is clearly taking its toll on his aging face.
He mentioned that he needs a tax person and that his accountant isn't providing him with what he needs.
This is what makes me shudder because what he really needs is a bookkeepeer.
Most business people may not realize that bookkeepers assist accountants like nurses who assist doctors.
Bookkeepers handle the groundwork, preparing everything for the accountant to file your taxes.
But here's the kicker—if you have a knowledgeable bookkeeper, that person can handle your taxes too!
Listen up! A bookkeeper doesn't require a four-year degree to prepare taxes.
The IRS even allows sixteen-year-olds to prepare taxes, so all I'm saying is, get your bookkeeping in order, and the tax process will become a breeze!
If not, you might find yourself shelling out $2,500 to a CPA or accountant for your business taxes!
Just sayin',
-Steph
What's worse than owing personal federal taxes to the IRS?
IRS Payroll taxes! If you're behind on your payroll taxes, do whatever you can to get back on track!
The IRS can seize your checking account, and if you don't have any money, don't worry — they'll go after your house.
Don't own a house? No worries, they'll target your business building.
Oh, you don't have one? Well, then they'll go after your car. Don't have one?
No worries, they'll wait until you do!
If you owe payroll taxes, you'll find yourself dodging the IRS, but you won't get away with it!
They will track you indefinitely and eventually put you in jail!
Payroll taxes are serious because they involve employees' Social Security and federal taxes.
Consider this a reminder.
Don't handle your payroll in-house; just use ADP, Paychex, or Gusto to process it. It's much easier!
Just sayin',
-Steph
I did some auditing for a 3rd party workers compensation company.
About 200 audits.
Some of the workers comp audits are pure BS!
I recall this one woman who really didn't do anything much in the office she worked in.
She called in sick one day and said her elbow was hurting. The next thing the owner knows is the employee is filing a WC claim and she won!
I saw all types of tactics to get workers comp. Phoney slip and falls, hurt wrist (carpal tunnel), back hurts from irregular chair etc.
So what can small business owners do to protect themselves?
Nothing! Yep that's right nothing! I guess make sure you have some good people.
If you find out through the grapevine somebody is unhappy it's best to give them their walking papers especially if they are not important to your company.
My two cents!
-Steph
Don't mess with the IRS or Lady Liberty!
"Part of the purpose of bookkeeping is to get you ready for taxes."
Business owners know your passwords!
Sorry, but just because you might not get a 1099-K doesn't mean you don't report the money you made to the IRS!
Get them before they get you!
It's ok to delegate! Get some help!
If you just can't take it anymore, call or text Steph
(747) 263-9016
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The bookkeeper had been dipping into the company's funds for her own expenses - car payments, utility bills, cell phone charges, you name it.
She even had an extra credit card in her name, which she used for personal stuff like gas, movies, concerts, and ATM withdrawals.
The deeper I dug, the more I just shook my head. She was sly and clever, but not quite good enough to cover her tracks.
The owner only found out because one of the associates got jealous and dropped an anonymous tip. The bookkeeper got the boot, but charges weren't pressed.
It's a costly lesson learned - never hand out your passwords, because that's like giving someone the combination to your safe full of cash!
- Steph
March 2024
Nobody Should Know Your Company Passwords (but you)
I Cringe When A Business Owner Says "I Need Tax Help"
The 1099-K rules have been delayed. Again!
Don't Get Behind on Your Payroll Taxes!
Don't Believe the Hype! The IRS Cancelled The ERC due to scams!
Workers Compensation Scammers - Yep Old Employees!
