Glossary

Form 1099-K – Payment Card and Third Party Network Transactions (also noted under gig workers)

What is Form 1099-K, and How Does it Affect Your Taxes?

Form 1099-K, “Payment Card and Third-Party Network Transactions,” is an IRS information return that reports the gross amount of payments you received from payment card transactions or through a third-party payment network. Payment processors like PayPal, Venmo, or Stripe are required to send you this form and the IRS if you meet certain transaction volume and payment thresholds.

  1. Glossary Article

Recommended for You

CP523X Notice

The CP523X Notice from the IRS serves to inform taxpayers about specifics of their installment agreement and any changes or potential default actions. Understanding its components is crucial for compliance.

Failure-to-File Penalty

The Failure-to-File Penalty is imposed by the IRS on taxpayers who do not file their tax returns by the deadline. It is essential to understand this penalty to avoid additional financial burdens.

Public Notice of Tax Lien Sale

A Public Notice of Tax Lien Sale is an announcement typically issued by a taxing authority to inform the public about the impending sale of property due to unpaid taxes.

Mobile App Data Security Tools Deduction

Mobile app data security tools tax deduction refers to the eligibility of deducting expenses incurred for cybersecurity measures from taxable income. This not only ensures digital protection but also offers financial relief for businesses.

Disaster-Resilient Office Setup Costs Deduction

The Disaster-Resilient Office Setup Costs Deduction allows businesses to deduct expenses related to making their office space more resilient to disasters. This deduction helps businesses mitigate risk and promote safety by encouraging investment in robust infrastructure.

Trust Fund Recovery Penalty (TFRP)

The Trust Fund Recovery Penalty (TFRP) is a penalty the IRS may impose on individuals responsible for a business's unpaid payroll taxes. It's important to understand how this penalty works to avoid potentially serious financial consequences.

Estate Heirship and Liens

Estate heirship and liens are critical in understanding financial obligations and tax implications for heirs, ensuring compliance with estate taxation laws.

Community Policing Tax Credit

The Community Policing Tax Credit is designed to support communities in funding local policing initiatives. This credit aids in offsetting costs related to community safety improvements.

Business Circular Economy Tax Credit

The Business Circular Economy Tax Credit is a governmental incentive designed to encourage businesses to adopt sustainable and circular economic practices, promoting environmental responsibility and economic efficiency.