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SUMMER 2022

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Distributor's Link Magazine Summer 2022 / Vol 45 No 3

56 THE DISTRIBUTOR’S

56 THE DISTRIBUTOR’S LINK Roman Basi Roman Basi is the President of The Center for Financial, Legal & Tax Planning, Inc. Roman graduated from Milliken University obtaining a Bachelor’s of Science Degree with a minor in Psychology. He earned an MBA from Southern Illinois University with an emphasis in Accounting and recevied his JD degree from Southern Illinois University. Roman is a licensed CPA as well as being a licensed attorney in Illinois, Missouri and Florida and is in high demand for his expertise in financial, legal and tax matters. His areas of expertise include mergers and acquisitions, contracts, real estate law, tax and estate planning. Visit online at www.taxplanning.com. CHANGES FOR SMALL BUSINESSES THAT USE DIGITAL PAYMENT SERVICES IN 2022 Due to a change promulgated by the American Rescue Plan of 2021, small businesses that are utilizing digital payment services such as PayPal, Venmo, Cash App, etc. will notice a change. Any third-party settlement provider accepting credit cards on behalf of the business and putting money into the business’ bank account will have to be reported to the IRS. If payments received from digital payment services were for goods and services that were sold to customers, it was previously up to you to make sure you were reporting that income on your tax return. But now, beginning in 2022, if you receive more than 0 in total in the year – regardless of how many customers are paying – your payment service is required to report that amount to the IRS. In full disclosure, those amounts should have already been reported as income anyway. But in reality, most small business owners just forget. Never fear, because now the digital payment service companies have the burden to submit the required information to the IRS (and they’ll send you a 1099-K) for your tax return. The new tax rule is separate from a proposed IRS reporting requirement that originally would have handed over transaction data on accounts with more than 0 aggregate inflow and outflow. That proposal, originally part of President Biden’s Build Back Better plan, was raised to a ,000 threshold after much pushback and has not yet been acted on by Congress. Whether you are selling products or services on Amazon, Etsy, eBay, even technically at craft shows and face-to-face, you can now expect to receive a 1099-K form sometime around January 31, 2023, from the payment services that you’re using of the revenue they reported on your behalf to the IRS for the purchases of goods and services made in 2022. CONTRIBUTOR ARTICLE Keen readers will notice that the new laws only affect goods and services. How do the services keep track of payments from friends or family members? Great question and most digital payment services had these in place before January 1, 2022. A lot of digital payment services now provide you with options regarding your payment details. It often boils down to two questions: 1) Is this a payment between family members/friends? or 2) Is this a payment for goods and/or services? If the person sending the payment’s answer to the first question is “Yes”, then nothing further needs to be done. However, if the payment is for goods and/or services, the response will be noted to the digital payment service company and the receiving entity will receive the appropriate tax forms. Some services are taking an even larger step towards compiling information related to their customers. Via its official blog, PayPal recently announced that “You may notice that in the coming months we will ask you for your tax information, like a social security number or tax ID, if you haven’t provided it to us already, to continue using your account to accept payments for the sale of goods and services transactions and to ensure there aren’t any issues when these changes take effect in 2022. This helps us meet our obligations to the IRS and ensures that you will be able to continue using your account and access PayPal and Venmo features and services”. This is just a very small example of how the tax laws are set to change for 2022 and beyond. There are numerous other important laws that businesses should be aware of such as the usual updates to individual income tax rates and other aspects of the United States tax code to utilize! ROMAN BASI

THE DISTRIBUTOR’S LINK 57 Würth Revcar Fasteners, a Würth Industry North America company, is pleased to announce that it has fully leased the building at 1 Avery Row in Roanoke, Virginia. The distribution warehouse building, consisting of 387,558 square feet, had been occupied by the Home Shopping Network for the past 30 years. The building will be the single largest Würth facility in North America and serve as the new headquarters and primary distribution center for Würth Revcar – Industrial Division. The renovated space is expected to open in the third quarter of 2022. Revcar Fasteners was founded in Roanoke in 1969 and has been headquartered in the Roanoke Valley since. The Würth Group, the world’s largest industrial distributor and leader of innovative supply chain solutions, acquired the company in 1996 as part of the Würth Industry North America network of companies. The company is a full-line/ full-service assembly component supplier and an approved Level One Fastener Distributor to many US Navy and military accounts worldwide. Würth Revcar’s deep ties to the region guided the company as they conducted a thorough location search. Their initial investment is expected to be in excess of million in office renovations, sustainable energy solutions, and warehouse infrastructure, with subsequent investments in warehouse automation and equipment to exceed the first phase of investment. “We are thrilled to relocate Würth Revcar to a new, larger headquarters in Roanoke,” shared Dan Hill, chief executive officer of Würth Industry North America, “This move represents another significant milestone for our fast-growing organization. The new facility supports our customer-centric distribution strategy in North America while accommodating our growing team. As a family-owned company with a 75-year history, we are honored to play a role in the growth of the Roanoke area through our new building.” “We are excited about the opportunity for a world-class headquarters that will allow us to attract, retain, and develop top talent in the same location as a highly efficient, large-scale distribution facility,” said Chapman Revercomb, managing director of Würth Revcar Fasteners. “We expect to add 50 office and warehousing positions as we ramp up operations in the new facility,” he added. The parties to the transaction express their appreciation to the Roanoke Regional Partnership and Roanoke County Economic Development for their role in this transaction and fostering a business environment that attracts new development and retention of Roanoke-based businesses. Würth Industry North America (WINA) is a + billion division of the Würth Group, the world’s largest industrial distributor. Within the Würth Group, founded in 1945, WINA is a privately held, family-owned business that believes satisfying customers is not enough. With more than 420,000 parts in their international supply chain, WINA provides each customer with extensive global reach and local knowledge from deep investment in its network of distribution centers across the United States, Canada, Mexico, and Brazil. For more information on Würth Industry of North America and the Würth Group, please visit the website www.wurthindustry.com.

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