#tax-compliance
Stay compliant with tax regulations and filing requirements
A booth renter is a separate business, not a salon employee — rent is a Schedule C expense, client payments arrive with nothing withheld, and 15.3% self-employment tax plus quarterly 1040-ES estimates are the renter's alone. This guide covers the IRS control tests, which 1099s and W-9s each side owes, and the account structure that keeps a chair rental defensible in an audit.
A 100% Section 232 tariff on patented drugs and APIs hits smaller manufacturers on September 29, 2026; here is how independent pharmacies and specialty clinics should audit country of origin, separate tariff in landed cost, and manage the working-capital lag before the cost passes through.
For wages paid on or after January 1, 2026, employers must report qualified tips in W-2 Box 12 Code TP and the Treasury Tipped Occupation Code in Box 14b, or tipped employees lose a deduction of up to $25,000 under section 224.
For fiscal 2026 the IRS high-low per diem rates are $319/day (high-cost) and $225/day (standard), unchanged from the prior year. Per diem stays tax-free only under an accountable plan's three rules — business connection, substantiation within 60 days, and return of excess within 120 days.
Seventeen states run back-to-school sales tax holidays in summer 2026, from Florida's 32-day window to Iowa's Friday-Saturday weekend, each with its own price caps — $75 clothing in Ohio, $300 in Connecticut, $40 on Maryland backpacks. Participation is mandatory for most registered retailers, and destination sourcing means online sellers with nexus must honor the holiday of the delivery state.
The IRS normally has three years from the filing date to assess additional tax under IRC 6501(a), six years if you omit more than 25% of gross income, and unlimited time if you never filed or filed fraudulently. Parallel clocks run alongside it - 10 years to collect, 3 years to claim a refund, 4 years for employment tax records, and property basis until disposition plus 3 - which is why most CPAs tell small businesses to default financial records to six years.
Paint-and-sip and candle studios ring one ticket that is three revenue types, two tax treatments, and a deferred liability. Here is how to split ticket, beverage, and retail revenue at the POS, book gift cards and deposits as deferred revenue, and track pour cost so month-end takes 30 minutes.
Congress restored the federal 1099-K threshold to $20,000 and 200 transactions in July 2025, but nine states still require a form at $600 and four more sit between $1,000 and $2,500 — so a $650 Etsy sale produces a 1099-K in Massachusetts and nothing in Texas. Includes the state-by-state threshold tiers and how to reconcile a gross form total down to actual taxable profit.
Purchase-based cash back, points, and miles are non-taxable rebates that reduce your deductible expense — but referral bonuses, no-purchase sign-up bonuses, and bank account bonuses are taxable income reported on 1099-MISC, now only when $2,000 or more from one payer in 2026 under the One Big Beautiful Bill Act.
Learn what IRS Publication 15 (Circular E) requires for withholding, deposits, and filing Forms 941 and W-2. A clear, practical breakdown for small employers.
Wind and solar had to begin construction by July 4, 2026 — but a facility placed in service by December 31, 2027 still qualifies for 45Y/48E, a vacated IRS notice restored the 5% safe harbor, and storage, geothermal, and fuel cells remain eligible through 2033.
DAC7 (Council Directive 2021/514) makes marketplaces report seller data to EU tax authorities by January 31 each year. For goods, you stay exempt only if you are under both 30 transactions and €2,000 on that platform for the calendar year — miss either prong and you are reportable, and ignoring the verification request lets the platform withhold payouts after two reminders and 60 days.
