The Tax Return Deadline for 2011 Has Passed. What Now? 0
The passing of April 17th has marked the end of this year’s tax deadline for most, but that does not mean that steps should not be taken to ease next year’s tax season as well. For those that have missed this year’s deadline and have fallen behind, there are some measures you can take. The rest can focus on smoothing out their tax preparation process for this current year.
If you have not filed your taxes, are not on extension, or have simply missed the deadline, then the first thing you should do is to reach out to the tax company who is handling your taxes and to check to see if they did file an extension without sending you a copy. If there’s no extension, you still should file a return, even if it’s past the deadline, you will still want to go ahead and file one in order to reduce the potential financial penalty for being late. Different penalties will be applied for late filing and late payments, but it all depends on the how long it takes you to file or pay what you owe. If you wait to file more than two years past the deadline, the IRS is not required to pay you a single cent if you had a refund, so that should help you get motivated!
If you are on extension, do not procrastinate. The added time you were given was to help you prepare an accurate tax return. Use this time wisely to continue to gather the info you needed rather than waiting to the last possible minute.
And finally, if you turned in your taxes without a hitch, enjoy the coming summer months. If your tax filing process did not go so well, find out what caused the problems and iron them out for next year. Was there a death in the family? Did your employment status suddenly change? Was there a divorce that changed your marital status?
There can be many unexpected hiccups in life that can affect your tax return. That is why it is recommended to start early and talk to your tax preparer throughout the year to check in on events current, planned and unplanned. It’s better to tell your tax preparer well in advance of that impending marriage or baby on the way. Even a divorce—if you started divorce proceedings now, it’s likely you’ll have a “single” status by next year’s tax return.
So if you are looking for help with bookkeeping or tax consulting for next year, then give us a call. We can help design a plan that will ensure you stay on track and accountable for the calendar year of 2012. Call Simons Accountancy now to make an appointment—we’ll do a review of your taxes and get you on track for next year: (714) 637-4552
How and Why to File an Extension on your Taxes 0
April 17th is almost upon us. Yes, that’s right. We said April SEVENTEENTH. It’s not a typo—this year April 15th, the usual tax-return deadline, is on a Sunday, and there’s a holiday in the District of Columbia on Monday the 16th. You can thank Emancipation Day for your extra few days to file your taxes.
But no matter if it’s the 15th or the 17th, this deadline is the day that many dread, but most are relieved to find that they come out unscathed. The truth is, if you need to file a tax extension then there is no shame in doing so—in fact, statistics show that 30-40% of Americans file for a tax extension every year.
Read MoreDoes Alternative Minimum Tax Apply to Everyone? 0
When it comes to tax laws, it is very important that you remain up to date on all changes and modifications. If left unchecked, you could end up owing the Internal Revenue Service more than you thought by simply overlooking a recent update.
In 2011, the IRS reworked what is known as the Alternative Minimum Tax. These rules were established so that anyone who has certain tax advantages must meet the required minimum tax.
Read MoreIs Obama’s Tax Proposal Good for Small Businesses? 0
A few weeks ago, President Obama released a proposal to lower the corporate tax rate, but we noticed it wasn’t getting rave reviews from either the left or the right.
At first, many people thought that this proposal would be good news for small businesses, yet small-business advocates say that Obama’s plan will benefit only a low number of small companies. As if that wasn’t bad enough, these advocates also point out that it will leave many business owners with higher tax bills.
Read MoreAre You Confused By Vehicle Tax Deductions? 0
Many business owners are stumped by the question of how and when to deduct vehicle use from their yearly income, and we know this because it’s one of the questions we hear most. The answer can be quite convoluted and vague when trying to research a solution from the IRS website and forums. The truth is that the rules set in place about automobiles are less than perfect, which is why we have broken down the rules into different procedures to help simplify the matter.
Read MoreTax Scam Warning from the IRS Newswire! 0
Tax Scam Warning: Beware of Phony Refund Scheme Abusing Popular College Tax Credit; Senior Citizens, Working Families and Church Members Are Targets
**We have copied and pasted this directly from the email from the Internal Revenue Service.
WASHINGTON – The Internal Revenue Service today warned senior citizens and other taxpayers to beware of an emerging scheme tempting them to file tax returns claiming fraudulent refunds.
The scheme carries a common theme of promising refunds to people who have little or no income and normally don’t have a tax filing requirement. Under the scheme, promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.
Read MoreShould I Use a Certified Public Accountant or a Tax Preparation Firm? 1
We’ve already talked about how using tax preparation software can lead to all sorts of problems on your tax return, including a potential audit. Even though the software might be helping you along, it does not have an actual brain to advise you on deductions or expenses.
In which case you may be thinking—“You’re right! I need an actual person helping me with my tax return!” And you write down the number of that well-known tax preparation service that has been running ads on television for years. They must be good, right?
Not necessarily. Let’s explain a few things about these tax preparation firms that are commonly seen in television ads around tax time.
Read MoreHow Do I File My Taxes with a Short Sale or Foreclosure 0
Many people have asked me recently: How do I report my property when I’ve had a short sale or foreclosure? There’s no easy answer, even though there’s a lot of information out there, for sure. But even true professionals don’t know how to handle foreclosures in a tax-return situation correctly.
For example: I told a client to go to someone else this year, because they said that they had sought a second opinion and believed that I was wrong. I had gone to a seminar prior to this incident, along with one of my staff bookkeepers, and we heard this client’s exact example, almost verbatim, spelled out. And the answer? We were right, according to the expert teaching the course.
Read MoreIndependent Contractor or Employee: How Do You Know? 0
Last week we discussed how important it is for a business owner to be classifying their workers appropriately or risk increased penalties from the IRS. But how do you know how the IRS classifies an individual working for you? How can a business owner determine the business relationship between themselves and an individual, and how do they classify them as an independent contractor, an employee, a statutory employee or statutory nonemployee?
Read MoreHow To Classify Your Employees and Why: SB 459 0
Many business owners have a lot to deal with on a day-to-day basis, whether it is managing staff, dealing with clients, working through administrative paperwork—there are few California business owners who have the time to look at every Senate Bill that gets passed.
Here’s one that we think you should all know about: California Senate Bill 459. Do you have any independent contractors working for your company? How many? Did you send them all a 1099 form? And, most importantly, do they all legally qualify as independent contractors?
If you are surprised by any of the questions above, it’s a good thing you’re reading this.
Read More