Super Small Businesses: IRS Form 940 and 941 Now Due

Hey, Super Small Business Owners! I hope all is going well as we finish up January 2018. This is just a reminder—and please note that I will NOT be reminding you of all your tax deadlines!

Wednesday, January 31, 2018 is the due date for Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return, and another quarter of Form 941: Employer’s Quarterly Federal Tax Return.

So, what does this mean for you… If you set up an Employer Identification Number (EIN) with the IRS when you started your business, you are responsible for these forms, unless you are exempt or changed status (such as changed to a yearly filer of Form 941 shortly after creating your biz, terminated business, etc.). If when you filed for an EIN Number you stated that you would not have employees, you need to check your original Letter assigning you your Employer Identification Number: Form SS-4.

Please note, if you are required to file these forms but have nothing to report, you are still responsible for filing the forms.

If you are not sure, check your Letter, Form SS-4 for guidance about what you should file.

If you cannot find this letter or lost track of it, you will want to take the time to call the IRS at 1-800-829-4933 and go to the queue for Employer Forms.

Finally, if when you originally applied for your Employer Identification Number you claimed that you would not have employees and now your business has grown, you need to file the form even if you only have one employee. If you are not sure, contact the IRS at the above number and let them know you now have an employee and they will guide you through what you need to do and what forms you are required to submit.

One last thing, the due date for both forms is January 31, 2018. If you have any questions and need to call the IRS, you will want to do so sooner rather than later. The telephone wait can be 30-45 minutes so plan to do some menial tasks or answer e-mail while you wait.

Resources

Irs.gov

 

Disclaimer: I am an attorney, but I’m NOT your attorney. The information provided on our blog, webinars, books, print and digital materials is for informational purposes only. This in no way creates an attorney/client relationship. If you have a legal concern or issue, please contact an attorney with knowledge on your topic licensed to practice law in your jurisdiction.

Supersmallbiz.com is a division of Liberty-Ellington Law and Mediation, PLLC. Any business information is provided for informational purposes only. The information provided does not guarantee in any way business performance or success.

The IRS Does NOT Call (Usually): Communication Alert

 

 

While doing work at the office today, I happen to answer the phone when a call came in from 1-315-227-2006.

They said, “This is the IRS and a lawsuit has been filed against you.”

I knew about this scam, so I just said, OK.”

The person on the other end of the line stated, “I need the last 4 of your social.”

I said, “I will not give you that over the phone.”

I was expecting an explanation, but they went straight to, “Please provide me with your Attorney’s name and number.”

  • I can see where this would bother someone getting such a strange call! But please note, the IRS does NOT call about a lawsuit.

I then told the caller, “I’d be representing myself.”

They asked,”Are you an attorney?”

I said, “Yes.”

They then asked to verify my Bar information.

When I asked them to clarify, they hung up the phone.

 

At this point, I called back…

I told the caller that I had gotten a call and that we got cut off. The person on the phone started to repeat what the first caller had said, but after about 30-45 seconds, they disconnected.

I attempted to call back, but apparently nobody wanted to play anymore.

 

*Once again, the IRS does not call you to tell you they are filing a lawsuit against you. The first step would be documentation- The IRS wants a paper trail! With that being said, if you are in the midst of a matter with the IRS and you are already working with an agent associated with the Department of the Treasury, then you may get a call. However, this is not the typical first line of communication you will receive when dealing with a financial situation being brought against you from the federal government.

If you get a call like this, do not give any information and call your state’s Attorney General.

 

Supersmallbiz.com is a division of Liberty-Ellington Law and Mediation, PLLC.

 

 

Don’t Make Promises When Hiring

     During the interview and hiring process, managers may have the urge to boast or exaggerate about the opportunities and benefits of being a part of the company. Many business owners and managers “puff up” their company to encourage a great applicant to accept an employment offer. promiseIf you are going to do this, you better be able to deliver what you promised or you may find yourself in hot water. If you tell a potential employee about great stock options or about significant upward mobility and he or she takes the job based on what you said, then they may be able to sue you later on if your statements or promises end up being incorrect. Some courts determine that a contract was formed based on the statements you made if the employee took the job based on your promises. This can get the company into legal trouble if a manager was simply boasting about what he hoped would happen in the future.

     When interviewing and hiring potential employees it is important to stick to the truth and avoid exaggeration about the company or position. Be sure to stay away from predictions about the future, or projected estimates of year-end bonuses. Additionally, be precise about what the job entails. If you are hiring a cashier, but the person ends up doing deliveries as well, you may have a problem. Furthermore, be sure not to tell potential employees that your company “has never done layoffs”, or ”no one has ever been fired for _____.” Statements like these may come back to haunt you in the form of a lawsuit if the individual left another job for more job security at your company due to your comments during the hiring process.

Looking for Law on Twitter

Who doesn’t love Twitter?

Looking for some good resources, or people to connect with on Twitter that tweet about the law and the legal field.

Here is a list of my favorites!

sarah bursteign (@design_law)

carolyn elefant (@carolynelefant)

ross guberman (@legalwritingpro)

rachel gurvich (@rachelgurvich)

keith lee (@associatedmind)

elie mystal (@elieNYC)

kevin o’keefe (@kevinokeefe)

 

Check out ABA Journal for more information on Twitter legal figures.