Tuesday, April 15, 2008

Due Date Reminders

April- 10- Report Tips to Employer

If you an employee who works for tips ans received more than $20 in tips during March, you are required to report them to your employer on IRS From 4070 no later than April 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

April-15 Individual Tax Return Due

File a 2007 income tax return (Form 1040, 1040A or 1040EZ) and pay any tax due. If you want an automatic six-month extension of time to file the return, please call the office. CAUTION: The extension gives until October 15, 2008 to file your 2007 1040 return without being liable for the late filing penalty. However, it does not avoid the late payment penalty;thus if you owe money,the late payment penalty can be severe, so you are encouraged to file as soon as possible to minimize that penalty. If you have a refund, there is no penalty; however you are giving the government a free loan, since they will only pay interest starting 45 days after the return is filed.

If you are looking for for a well trained tax preparer to prepare your returns, even after you are approved for the extension. Look no further, contact Effectur today for all your tax preparer inquiries.

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