Latest news with #taxobligations
Irish Times
05-08-2025
- Business
- Irish Times
Aer Lingus eyes flights to Pittsburg and William Fry hires senior staff from rival
Aer Lingus could begin direct flights to Pittsburgh in the United States from Dublin next year as part of a further expansion of its North American route network. Barry O'Halloran reports. Barry also has the details on how leading Irish law firm William Fry has hired a number of senior Eversheds Sutherland lawyers as the fallout from a failed merger of the two firms continues. In our Your Money feature this week, Siobhán Maguire looks at Revenue's recent guide for influencers and social media personalities, reminding them of their tax obligations on any income they make promoting products or companies. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers. In our Q&A, a reader wonders if they will face a capital gains tax bill on the sale of their home because they have a lodger. Dominic Coyle offers some guidance. READ MORE Irish showjumper Leah Stack will be competing at the Dublin Horse Show this week. In our Me & My Money column she explains to Tony Clayton-Lea how 'horses can be quite unreliable at times ... so I have a few backup investments'. In his media column, Hugh Linehan looks at how photographs can be used to shape the narrative of war , citing a recent pic from Gaza that is now being questioned. Family-owned service station group Maxol operates on both sides of the Border. In an interview with Mark Hennessy, Brian Donaldson outlines the different spending habits of its customers in the North and the Republic and gives his view on the switchover to EVs. Irish group Jones Engineering is eyeing turnover of €1.5 billion for 2025, driven by projects overseas. Eoin Burke-Kennedy has the details. The Competition and Consumer Protection Commission is setting up a new unit to use video and audio surveillance powers given by recent legislation to investigate price fixing and other crimes. Barry O'Halloran reports. When we seek financial advice , we're often just looking for someone to bless the choice we were leaning toward all along, writes Stocktake.
Yahoo
12-07-2025
- Business
- Yahoo
3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
If you're a cryptocurrency investor, you might soon hear from Uncle Sam in the form of an IRS letter detailing your tax obligations. Read Next: Find Out: The letters are designed to warn taxpayers that crypto investments they declared on their most recent tax returns might not be accurate, Fortune reported — and there are a lot more of those letters being issued. In May and June alone, the number of support conversations on crypto tax platform CoinLedger that included the words 'IRS letters' totaled nearly 800. That represented a nine-fold increase compared to the same period in 2024, CoinLedger CEO David Kemmerer told Fortune. 'Thousands of investors are getting these,' Kemmerer said. 'Naturally, when that happens, we get a flood of customers coming to us being like, 'Hey, what do I do?'' The letters come in three basic forms, according to a recent blog from Corrigan Krause, an Ohio-based tax, accounting and consulting firm. One of them, titled letter 6173, is sent when the IRS believes you didn't meet your U.S. tax filing and reporting requirements for virtual currency transactions. The others — letters 6174 and 6174-A — are sent when the IRS believes you have or have had 'one or more accounts containing virtual currency' but might not know the reporting requirements, Corrigan Krause noted. You don't have to respond to a letter 6174 or 6174-A. However, you should check your form 1040 filing to determine if it needs to be amended. You should also keep an eye out for further IRS correspondence. If you receive a letter 6173, you are required to act. Depending on the situation, here are three things you might need to do if you get a letter 6173, according to Corrigan Krause. If you failed to file one or more income tax returns, you'll need to file delinquent returns and report your crypto transactions as soon as possible. If you made a mistake on your income tax return, such as not reporting your crypto transactions or incorrectly calculating your income, gain or loss, then you should file an amended return as soon as possible. If you think you met all your reporting requirements and have received a letter 6173 in error, you'll need to follow certain steps. First, check the top of the letter to find an address and eFax number that you'll need to send the following documentation to: Your contact information. A 'statement of facts' explaining your position. This should include a full history of previously reported income from your crypto transactions as well as an explanation of the actions you took to become compliant with U.S. reporting requirements. Provide copies of previously filed documents that confirm your compliance. Your signed and dated letter 6173 section stating that you, under penalties of perjury, are sending the IRS documents proving you are compliant with U.S. reporting requirements. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
SBS Australia
08-07-2025
- Business
- SBS Australia
How to start your home business in Australia
While most home business owners register as sole traders, a company structure—though more expensive—may be better suited to higher-risk businesses. Check with your local council for any required approvals, and if you're renting, make sure to get your landlord's permission first. Any business that involves children or food is subject to additional licensing requirements and strict safety regulations. Running a business from home comes with plenty of perks—like flexibility and lower overall costs. But whether you operate from home, a shopfront, or another location, every business requires compliance with regulations—some broad, others specific to your industry or local area. 'A home-based business is usually one where you have an area of your home set aside that is used exclusively as a place of business,' Australian Taxation Office (ATO) Assistant Commissioner Angela Allen explains. 'A really good example of a home-based business is running a hair salon in your home.' If you are unsure whether your activities count as business for tax purposes, you can check by visiting ATO's website . Tax and registration obligations Regardless of your industry, a business comes with tax obligations and registrations. Home-based or not, you'll need a Tax File Number (TFN) and an Australian Business Number (ABN). Both are free to obtain and can be applied for online. 'Depending on how much money you make, the size of your small business and if you have employees, you may also need to register for other ATO obligations such as GST, Pay as you go withholding (PAYG), and fringe benefits tax,' Ms Allen says. GST applies to all ride-sharing and taxi businesses from home. Credit: gahsoon/Getty Images Choosing the right structure for your home-based business is important—it impacts your tax obligations and the level of legal risk you're exposed to. Alex Solo is the co-founder of Sprintlaw, an online legal service provider. He says the most common structure for individuals setting up a home-based business is sole proprietorship, also known as sole trader. 'It's the cheapest, quickest option for a one-person business in Australia, you can do it yourself online.' A company on the other hand, can cost at least $600 to set up and has ongoing fees and tax obligations attached. But its biggest advantage is risk-protection. 'If things go wrong in the business, it really is separated from your personal life, your home assets, it's all limited to the company.' Licensing approvals A home business may also require government approvals, at federal, state or local government level. People may not realise that for certain business types you need local council approvals. Alex Solo This includes wellness professionals, personal trainers, beauticians, and virtually any service provider who sees clients at home. Your home business may require government approvals. Credit:Food and catering industry Most food-related businesses will not be reaching out to their state government food safety regulator, but their council instead. 'It is a very important point to raise that the food business must contact their local council initially to seek some advice,' Andrew Davies, Acting CEO of the New South Wales Food Authority, recommends. 'From a food safety perspective, any food business can operate from home as long as the premises, the equipment and food handling practises meet the Food Standards code requirements, which applies across Australia,' Mr Davies says. 'And that will give you information like the minimum requirements when you receive, when you store the food, when you process, display, package, transport or dispose of it.' Home-based food businesses include food trucks, caterers, bed and breakfast accommodation and preparing food for retail sale at markets or school canteens. Credit:Early childhood care at home Early childhood educators can work from home under the Family day care service model, which is part-funded by the Australian government. Typically, a Family Day Care educator will be registered as a sole trader and contracted by an approved service provider. Andrew Paterson, CEO of peak body Family Day Care Australia outlines key prerequisites: Certificate III in early childhood education and care Working with Children Check and Police Check First aid and safety qualifications 'Family Day Care operates under national law, so regulatory quality and safety requirements are consistent across the country,' Mr Paterson says. But educators also need to get council approval, and conditions vary. Once you register with a Family Day Care approved service, they can support you in managing any local government requirements. Andrew Paterson General business obligations still apply, Mr Paterson stresses, like tax registrations and adequate insurance. 'Family Day Care is not a babysitting or a childminding service. 'It's important to come into the sector with an understanding that you are an early childhood education professional, but you're also running a business and working in a highly regulated environment.' If your home-based business involves collecting health information from your clients, make sure you comply with privacy laws. Credit: FrazaoSeek support before you start If you're new to business, it's a good idea to seek professional support. You can also contact the relevant government agency in your state or territory for advice and information about any government-subsidised workshops available. Chris O'Hare, senior business adviser at the Western Australia's Small Business Development Corporation, encourages new business owners to invest in learning the basics of financial management and legal compliance. 'Because in the end, even if you go to a lawyer or an accountant and they recommend something to you, as a business owner, it is ultimately your decision.' Many start a business motivated to put their skills to good use, but understanding your finances is essential, not optional, Mr O'Hare says. 'Money is almost like a taboo subject for some. But if you run out of money and your business closes, how many people are you going to be able to help?' And if you're setting up a home-based business while renting, don't forget to seek landlord approval early on. 'Because they may choose not to allow you to do that. 'Imagine starting a home business and then having your residential lease cancelled because you're breaking the terms. It would be quite a horrifying experience.' For business advice and assistance in your state or territory visit the government websites listed below : Australian Capital Territory Subscribe to or follow the Australia Explained podcast for more valuable information and tips about settling into your new life in Australia. Do you have any questions or topic ideas? Send us an email to australiaexplained@
Yahoo
20-06-2025
- Business
- Yahoo
Sussex companies and businesspeople named and shamed for not paying their taxes
Seven firms and individuals operating in Sussex have been named and shamed for deliberately not paying their taxes. HM Revenue and Customs (HMRC) updated its list of deliberate tax defaulters on June 18, revealing businesses and individuals who have received penalties for deliberately defaulting on their tax obligations, where the tax lost exceeds £25,000. The list includes those who made deliberate errors in their tax returns or deliberately failed to comply with their tax obligations. READ MORE: Businesses in Sussex named and shamed for failing to pay minimum wage Among the defaulters is BKE N.E. Ltd, a management consultancy business with offices in Newcastle and at 7–9 The Avenue, Eastbourne. The company was in default between April 18, 2019, and April 30, 2023, and accumulated a tax liability of £144,027, resulting in a penalty of £70,573.21, according to HMRC. Golden City 54 Limited, trading as Golden City, a takeaway on Ewhurst Road, Crawley, defaulted between October 1, 2017, and October 31, 2021, owing £88,549.86 in tax and resulting in a penalty of £61,984.88. Jakub Krzysztof Ciok, formerly trading as J C Tyres on Longford Road, Bognor Regis, was in default from April 6, 2016, until March 31, 2022, accumulating a tax bill of £64,960.43 and a penalty of £26,002.21. Golden City takeaway in Crawley was included on the list (Image: Google)READ NEXT: 50% increase in dangerous dog incidents with 1,063 involving children aged under 10 Msteamstelephony Ltd, a telephony installation company on The Drive, Iford, had two default periods between June 15, 2021, and September 30, 2023, resulting in a total tax liability of £36,579 and penalties amounting to £19,203.96. Heman Aziz Ahmad, involved in tobacco importation at Hughenden Road, Hastings, was in default on May 2, 2023, incurring a tax obligation of £37,441 and a penalty of £15,725.22. Property income earner, Peter Ernest Michael Shade, was in default from April 6, 2010, through to April 5, 2020, owing £63,470.16 in tax and was fined £34,725.03. His principal address was Sunnymead Drive, Selsey. Pest controller Malcolm Paradine, based on Crossbush Lane, Arundel, was in default from April 6, 2017, to April 5, 2022, during which he accumulated a tax liability of £52,540.13 and a penalty of £22,690.16. The details of these tax defaulters will remain published for 12 months. However, this list only includes those penalised under civil procedures and does not include criminal convictions for tax fraud. READ NEXT: Heat alert upgraded and deaths 'likely' as temperatures continue to soar Kevin Hubbard, HMRC's director of individuals and small business compliance, said: "The overwhelming majority pay the tax they owe, but for those who refuse, we use a range of tools to take firm action. "This includes publishing the names of those penalised for deliberate defaults to influence taxpayer behaviour and encourage defaulters to engage with HMRC."
Forbes
06-06-2025
- Business
- Forbes
Employees Or Independent Contractors? How To Classify Workers
A business' tax and benefit obligations are limited when a worker is a contractor. But misclassification can be costly. getty When you're a small business, you may not have the resources (nor the need) for a full-time staff. You might choose to have one or two employees who work part-time, one or two who work full-time, or, depending on your circumstances, you might fill in the gaps seasonally by hiring temporary employees. From a tax and employment law perspective, all of them could potentially be your employees. Sometimes employers assume that only full-time, permanent workers are employees. This is not true. Employees can be full-time or part-time, seasonal or year-round, temporary or permanent. The question of how to classify workers as employees versus independent contractors depends on many factors, but the length of employment is not one of them. What distinguishes an employee from an independent contractor? If a worker is an employee, the employer has certain tax obligations on behalf of the worker. In contrast, an employer does not withhold any payroll taxes, including Social Security and Medicare taxes, nor does it pay the employer portion of those taxes for an independent contractor. The Internal Revenue Service (IRS) says that the general rule is that an individual is considered an independent contractor if the person paying for the work has the right to control or direct only the result of the work, not the manner in which it is done. Or, to put it simply, it's a question of control: The more you control the terms of the employment, the more likely it is that you are an employer. Obviously, control is relevant and cases are fact-specific. In an effort to clarify this, in 1987, the IRS developed a list of 20 factors to be considered. Those were memorialized in Revenue Ruling 87-41. (A revenue ruling is an official interpretation by the IRS of the Internal Revenue Code, related statutes, tax treaties, and regulations, and indicates how the IRS believes the law should be applied to a specific set of facts.) The 20 factors identified by the IRS in Revenue Ruling 87-41 are listed below. The more the answer to each question is yes, the more likely it is that the worker is an employee and not an independent contractor. Of course, that list isn't written in stone, just in a Revenue Ruling. Some of this is subjective, and there's no magic number of times you can answer yes that conclusively determines the outcome. Since that time, the IRS has updated its checklist to three categories of factors to be used alongside the 20 questions. For IRS purposes, as an employer, you must weigh all these factors to determine whether a worker is an employee or an independent contractor. The IRS also has a helpful section on its website that provides examples and definitions. So is this just about a paycheck? Not at all. Employers have different obligations towards employees than they do towards independent contractors—and that extends beyond tax obligations. For example, an employer is not responsible for providing the same benefits and tax-favored opportunities, such as health care insurance and retirement plans, to an independent contractor that they provide to those workers who are considered employees. An employer is not required to offer stock options or other incentive plans to an independent contractor. And when an independent contractor leaves, for whatever reason, there is generally no severance or unemployment compensation payable. In short, an independent contractor is, well, independent. Worker classification can also impact wages and overtime pay. That's why, as part of its efforts to address worker misclassification, the Wage and Hour Division of the Department of Labor (DOL) published a final rule, effective March 11, 2024, revising its guidance on how to analyze whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). Additional information is available on the DOL website. Worker misclassification issues aren't limited to small businesses. Several high-profile companies, including Microsoft, Time Warner, and Lyft, have faced court cases over allegations of worker misclassification. Perhaps the most famous case involved FedEx, which was accused of classifying and paying its drivers as independent contractors for years (when they should have been classified as employees). After extensive litigation in multiple states, FedEx paid nearly half a billion dollars in settlement payments for misclassification. What happens if you do it wrong? As court cases around the country have demonstrated, if you erroneously classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Depending on circumstances, you may be required to retroactively apply benefits. If you have concerns, you can get out in front of the problem. If you want the IRS to make a determination, you can file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. (The form may be filed by either the business or the worker.) The IRS will review the facts and circumstances and officially determine the worker's status. But it's not quick: it can take at least six months to get a determination. If you've misclassified a worker as an independent contractor, but you have a reasonable basis for doing so, you may qualify under a safe harbor for tax relief. The relief, sometimes referred to as section 530 relief, requires you to meet certain criteria, including treating the worker consistently for filing obligations (for example, you filed Form 1099-NEC for a worker you considered an independent contractor). You must also have treated similar workers as independent contractors. The IRS also offers a Voluntary Classification Settlement Program (VCSP) that allows employers to reclassify workers as employees for future tax periods and obtain some tax relief. To participate, a business owner must meet certain eligibility requirements (similar to those for section 530 relief).
