By Jim Chaston
1. Congress has gotten serious about correct Employee vs. Independent Contractors classification and increased penalties drastically. Penalties can be more than 100 percent of payments for misclassified employees. Listen to a tax professional, not other business associates and friends. Classification is based on behavioral control, financial control and a relationship test; NOT a written contract.
2. Identity Theft is a huge issue. Congress changed the deadlines for filing W-2s and 1099s up to Jan. 31 instead of Feb. 28. This is so the IRS can match W-2s and 1099s to tax returns before they issue refunds. Refunds were delayed until Feb. 15 this year because of fraudulent returns and identity theft.
3. The annual required election to expense repairs and small equipment – Repairs and Small Equipment Regulation – has increased from $500 to $2,500 with election on tax return.
4. Section 179 Depreciation is $500,000 for 2016.
5. You can still get a tax credit for implementing a retirement plan in your company for up to 50 percent of the cost of implementation.
James A. Chaston CPA
This column appears in the March issue of InMaricopa.
![Phoenix police stop a stolen vehicle on April 20, 2024. [Facebook]](https://www.inmaricopa.com/wp-content/uploads/2024/04/IMG_5040-218x150.jpg "Alleged car thief released without charges")
