McCullough & Associates Blog

Feb 01, 2013

IRS Provides “Where’s My Refund” Tool

After taxpayers file a return, they can track the status of the refund with the “Where’s My Refund?” tool available on the website. New this year, instead of an estimated date, Where’s My Refund? will give people an actual personalized refund date after the IRS processes the tax return and approves the refund.


Jan 22, 2013

What To Keep?

Don't be too aggressive when removing clutter from your desk or office. The IRS insists records of employment taxes be kept for at least FOUR YEARS, and files should include:

  1. Amounts and dates of all wage, annuity and pension payments.
  2. Names, addresses, Social Security numbers and occupations of employees, as well as their dates of employment.
  3. Employee…

Jan 18, 2013

FUTA Credit Reduction

For a second year, Missouri is classified as a credit reduction state for FUTA. A credit reduction state has taken loans from the federal government to meet its state unemployment benefits liability and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate means that employers paying wages subject to UI tax in…

Jan 17, 2013

Missouri Use Tax - Are You at Risk?

The State of Missouri imposes a use tax on Missouri businesses and individuals for the privilege of storing, using, or consuming tangible personal property in Missouri. While Missouri has imposed the use tax since the late 1950s, many purchasers are not aware of their responsibilities to report transactions and remit the appropriate tax. The purpose of this letter is to make you aware of your responsibilities…

Jan 16, 2013

Auto Mileage Expense Deduction

If you use your vehicle for business use, or your business owns its own vehicle, you are allowed to deduct some of the costs for up keep of the vehicle. You can either use the actual expense method or the standard mileage rate method. 

Under the actual method, you must keep track of all of your actual business related expenses related to the vehicle. 

Under the standard mileage rate,…

Jan 15, 2013

IRS Requirements Regarding Forms W-9 and 1099-MISC

To avoid penalties, make sure you have a Form W-9 on file for any non-employees prior to issuing them a payment. Failure to do so will be considered by the IRS as an unlawful disregard to commit a fraudulent act. This can result in the payor being subject to backup withholding tax which must be reported on Form 945, Annual Return of Withheld Federal Income Tax, and the payor is subject…

Jan 14, 2013

Important 2013 Payroll Updates

As we begin 2013 and deal with the aftermath of the Fiscal Cliff, there are a few very important payroll tax updates that need to be explained:  

  • Medicare: In 2013 taxable Medicare wages paid in excess of $200,000 are subject to an additional 0.9% Medicare tax that will only be withheld from employees' wages. Employers will not pay the extra tax.
  • Expired…

Jan 11, 2013

Automated IRS System Helps College-Bound Students With Financial Aid Application Process

College-bound students and their parents typically want to make every dollar and every minute of the college experience count including money spent on tuition and time spent on the college financial aid application process.

The Internal Revenue Service is helping minimize the time spent on the completion of the Free Application for Federal Student Aid (FAFSA) form by automating access to…

Jan 02, 2013

US Tax Code Changes that May Affect You

With the passing of the Affordable Care Act in July of 2012, a number of modifications were brought about to US tax codes. Many of these changes could potentially affect you and your business. Listed below are the most prominent changes:

  • Starting in 2014, U.S. citizens and legal residents are required to obtain minimum health care coverage for themselves and their dependents. This…

Sep 04, 2012

Form 1099-MISC

Are you required to file a 1099?  Form 1099-MISC is used to report payments to a non-employee for services rendered.  This form should only be filed when payments are made in the course of trade or business by corporations, LLCs, sole proprietors, and farmers.  One exception to this rule is rental businesses, which are not required to file a 1099.  If you have used the services of an LLC, you will…