Thursday, January 31, 2008

Business Tax Returns

There are several common mistakes concerning business income taxes, and how they file. I think it is almost imperative that business's whether they are Incorported, C-Corp, S-Corp,Sole Prop;an accountant or a accreditted tax firm needs to file their returns.This is especially important when you owe back taxes or you are tax delinquant on any of your 941 payroll taxes,940, or 1099-C Miscellaneous taxes (Estimated Tax Payments).

I am amazed of the number of business's that don't see the need to pay their quarterly payroll roll taxes or estimated taxes if they receive a 1099 -C. I can assure you that you need to refrain from tax debt and find some one who will help see that you remain compliant onal of your 940 and 941 tax returns. There are companies out there that will see you towards your complaincy requirements.

I can assure you that you don't want to be held personally liable for this tax debt. Did you know that this very thing could happen if withhold tax from the government? Unfortunatelly, they will sieze your financial accounts whether you own the company or sign the checks. Anyone who is authorized to sign checks could also be held liable. The IRS is only interested in confiscating what they are rightfully due.

If you need IRS help and are concerned that you may be in trouble for tax evasion, don't hesitate to see help.

Monday, January 28, 2008

OIC- Offer In Compromise

Did you know that there are companies out there that can help achieve an Offer In Compromise

Well those that need this type of IRS Help, can find an tax consultant close to you. I wanted to spend a little time talking about Offer In Compromise and some of the details that go into achieving one as a resolution. Did you know that the IRS will investigate the following in order to evaluate whether or not you qualify for an Offer In Compromise:

They will review prior tax returns

*Pay Stubs

*Future Income Resources (SSA,Pension income,inheritance, receivables,)

* How do you calculate your future income? Using 3 offers and Monthly Disposable *Income,Short Deferred Payment Offer (24 months) for 60 months. A deferred payment offer is over the life of the collection status.

*Credit Application (Income declarations)

*Documents of Income (Commission Reports,pay stubs,etc.)

Stay tuned for more information concerning Offer In Compromise from a tax consultant !

Saturday, January 26, 2008

Top 10 Tax Return Gaffes/Errors on taxes

As a general rule, taxpayer's should never prepare their own taxes. If you need IRS Help, there are companies out there that can ensure you that your returns will be processed in a timely fashion. Bare in mine that there are several commone mistakes that one could make when attempting to file their own tax returns:

What is a gaffe?
-A clumsy error
-A faux pas
-A blatant mistake or misjudgement
-Something that should not have been done

A Gaffe is a large hook with a sharp point used to grab large fish. I listed a couple of so called excuses or reason why taxpayer's forget to include mandatory information their tax returns.

#1-The Undereported Stock Sale-

In a case like this, you may hear where a client may say "I lost money on the stock". They become under the impression that it does not matter because the IRS does not physically see it reported. Therefore, it would be no way for them to get caught. In a case like this, a taxpayer may not realize that they need to allow for this cost basis in stock. Bare in mind there are two things that the taxpayer would need to provide: one being the purchase and the other being the price. Note, that the IRS would need to fix the IRP to show stock bases.

#2 The Omitted 1099-Misc

Client may say to the IRS that "they forgit to report their business income". Secondly they say that they thought it was in cash and not reportable.Lastly, the IRS may refute any change newly added expenses when its already reported as other earnings on Sch. C. Stay tuned for more information to come on Gaffes and Errors in tax reporting.

Not all tax attorney's and tax lawyer's can solve your needs for a tax resolution. There are licensed tax consultants out there that can provide information and resolutions because they deal with the IRS on a daily basis to provide the best outcome for you !

Second Part of Gaffes/Errors on Tax Returns

I wanted to continue my posting about Gaffe's and Errors in regards to tax returns. There were a couple more examples I wanted to share; they are listed below:

#3 Reporting Business Income as Wages

Reported 1099 Misc as W-2 wages, is a common mistake that Taxpayers make in regards to their business returns. Secondly, they may fail to report Self-Employment Tax of 3% on their returns. Therefore the IRS will reassess the 1099 Form income and tax an additional SE tax to their return.
Taxpayers tend to fail to file an SS-8 for the IRS when they classify themselves as an Independent Contractor. Providing this form will help the IRS determine whether or not you should be treated a wage earner or an independent contractor.

#4 The Invalid Department and its aftermath:

Lastly, taxpayers misuse exemptions such as dependants on their tax returns. The IRS will disallow a dependant due to the following reasons.
*Duplicate deductions
*Incorrect or missing SSN
*Incorrect last name and SSN

However there are several adjustments that are made when taxpayers legitimately/unknowingly fail to report dependant information on their returns. Those adjustments are as followed:
*Dependant and filing status
*Child Tax Credit
*Earned Income Credit
*Child & Dependant Care Credit. i.e taken car of an elderly person (inside or outside the home) and paying their expenses.

Listed above are examples of common mistakes people make on their tax returns, willingly or unwillingly. If you have tax needs and need IRS Help,or a tax consultant there are licensed enrolled agents out there to find a resolutions such as a Offer In Compromise or an Installment Agreement to help you today!