Tax Information For Small Businesses And Self-Employed Individuals

The 2011 Tax season is quickly approaching, and many people are busy getting all of their tax information together so they can file their taxes on time. Business owners face many more challenges at tax time than employees. It is crucial for business owners to have all of the information they need in order to file their taxes, which can be quite a grueling process. In most cases, the law does not require businesses to keep detailed records, but they must be able to supply evidence of all earnings related transactions. Small business owners should keep a record of their sales slips, purchases, receipts, payrolls, paid bills, invoices and any other financial documents. All businesses should employ a qualified bookkeeper or accountant who is able to keep accurate business records throughout the year.

Self-employed individuals must also prepare themselves accordingly before filing their taxes. Most people who work as freelancers do not bother to hire a bookkeeper or accountant. Unless someone knows the ins and outs of taxes, they will need to conduct plenty of research before filing their tax return. For example, there are many tax write offs that need to be considered. A local income tax agency can help a self-employed individual file their income tax return, but the person filing is responsible for providing them with all of the required information. Just like small business owners, self-employed individuals should save all of their financial documents throughout the year.

There is plenty of information for Small Business and Self-Employed Individuals available online. Small business owners and self-employed individuals can find out more information online at the IRS government website. The official IRS website offers information on forms for small businesses, employer ID number applications, social security, Medicare, income tax and more. The IRS website offers helpful articles, videos, virtual workshops and a printable tax calendar. They also offer information on small business tax audits.

Do You Know Your Options For the Tax Season?

Preparing and filing your federal tax return is quite simple with the IRS e-file free tax filing program. The Internal Revenue Service provides this program to help ensure that you can get your taxes done fast and easy. In addition, the IRS E-File is safe, free and ensures that you get the highest refund amount entitled to you.

There are two ways to take advantage of free 2011 tax return filing from the IRS. You can choose to use easy tax software or file electronically online. If you earn less than $58k per year, you are eligible to take advantage of Free File Software.

If you are one of nearly 100 million who are eligible for free 2011 tax filing, you can access the IRS e-file online forms by visiting the government IRS website. Once you begin, you will be assisted in finding free software and after choosing the right one for you, you will then be instructed through the filing process for your 2011 tax forms. The best thing about e-file is that it eliminates the high costs of having a professional complete your tax return and most anyone can successfully file their return online for free without prior tax knowledge. If the government owes you money, such as the EIC, the software will automatically apply your earned income credit to your refund.

Of course, safety and security is always a concern when filling out private information online and the IRS takes this into consideration with Free File. To date, the software has been used both securely and safely by millions of people since the year 2003.

If you are not comfortable doing your 2011 tax return online, there are still options that allow you to mail your tax forms. Although it takes longer to receive a refund when you file by mail, it is still preferred among some tax payers and will likely remain an option when 2012 tax time rolls around as well.

File Back Taxes

There is no way to avoid death or taxes. Postponing either may be possible, but in the case of taxes, the longer the postponement, the more painful the possible outcome. There are some completely legitimate reasons that a tax return does not get filed, but estimated taxes must be paid even if the actual return submission will be delayed. If there are back taxes owed, postponing the inevitable will only make a bad situation worse. Taking action to file returns, regardless of what the delay to date, will not only reduce interest and penalties, but may keep the Internal Revenue Service from wanting to prosecute you. If the IRS must come after you to get their taxes, the enforced tax collection process can be very unpleasant.

If your records have been lost or destroyed by natural disasters such as floods or fires, or perhaps your house was burglarized and papers stolen along with belongings, then you particularly need the assistance of a tax attorney or accountant. These professionals are accustomed to dealing with such situations. There are many ways to reconstruct records. An experienced and knowledgeable tax accountant or attorney will have the skills and tools to locate duplicates of record, and they will know what tolerances IRS has for proofs when there is a legitimate reason why original records are unavailable. Although difficult, recreating information for up to 15 or 20 years has been done, and the tax returns successfully filed and accepted by IRS.

Many taxpayers are honest people who have always paid their taxes until some unexpected situation made paying impossible. The family may have had a medical emergency or recent job loss. Money to pay taxes owed for the previous year may have evaporated. Since they do not have the funds to pay the taxes, they fear the repercussions if they file a return. What they need to know is that there are provisions for filing a return without payment of the taxes, so that they have at least complied with the law. They can save additional tax penalties of 25 percent for failing to timely file a return. Some states will impose hefty penalties even if no taxes are owed, on those who failed to file.

Obviously it would be a great time saver if you still had the information on all returns from previous years. But the only solution to your stress and worry is to bite the bullet, start the process and get the returns filed. You need the assistance of a professional because the delays have complicated the filing process. An experienced tax attorney or accountant has guided many other clients through the same legal maze with success. They understand your fears and concerns, and they also understand how to help you through the process and assist you in dealing with the IRS.

IRS does not allow taxpayers to file their tax returns online if they are filing to pay back taxes owed. These returns must be submitted on paper as the IRS will take an extra-hard look at them and will not deal with electronic returns. A wise move is to send the returns certified mail, and have the post office return proof the filing was received, in order to have proof that IRS did receive the returns and to document the dates mailed and received.

Filers who end up owing taxes will incur some interest and possibly penalties. The IRS will work with taxpayers who want to pay their taxes and who may need to make payment arrangements.

IRS wants people to file their tax returns. Taxpayers who want to be totally up front and get back on track will find the process fairly quick and simple. The mistake that will cause the biggest problem is to take no action at all. Ongoing failure to take action and file returns, with or without payment of taxes, is hard to justify in the opinion of the IRS. Honest efforts to do the correct action as soon as possible will usually prevent the most severe consequences. Putting off the obligation will only increase the costs and penalties.

Get the Biggest Refund with QuickTax

QuickTax has been around for more than 11 years, so of course they are very experienced in maximizing tax returns. They are so confident, that they even offer a full money back guarantee if anyone else can get you a larger refund. This guarantee combined with all the other tools QuickTax uses will ensure you the maximum refund while allowing you to rest assured you get the maximum refund.

turbotax

QuickTax takes advantage of an easy to understand software interface for users which has been designed with the expertise of tax analysts and experts to cover every possible angle on your refund without becoming too complicated in the process. By using the A-to-Z List of Deductions to go through every single one of the 400 deductions available to Canadians, the QuickTax program exhaustively covers all possible methods to gain as much money that you qualify for as possible. If any deductions are possibly missed, QuickTax will also run a check to catch it.

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Even the more complicated tax returns such as those involving marriage, divorce, the purchase or sale of a house, and mutual fund shares can be taken care of by QuickTax. By using QuickTax’s comprehensive programs you can be sure that every potential aspect of your tax situation will be taken full advantage of.

QuickTax is so sure that no other company will be able to get you a larger rebate, and you will get 100% of your money refunded to you if it happens. This is a guarantee that has made QuickTax the #1 selling tax program in Canada.

By combining the expertise of tax analysts with the simple interface of QuickTax’s software, QuickTax has provided the ideal setting for getting you the most for your money this tax season. QuickTax is the best choice for your taxes if you want the largest refund possible.

What Time Is Suitable To File A Return For You?

What Time Is Suitable To File A Return For You?

The first legal tax payment for the Americans was enforced in the 1860s when Abraham Lincoln was the president. As the civil war proved to be very expensive, the government decided to impose a legal requirement upon the citizens for paying income taxes.

At the beginning, 15 April was not the deadline for filing your returns. At the time it was set for 1 March. In 1918, the date was changed to 15 March. Finally in 1954, the date was fixed at 15 April, and since then it … Read more at 2011 Tax.

What Time Is Suitable To File A Return For You?

The first legal tax payment for the Americans was enforced in the 1860s when Abraham Lincoln was the president. As the civil war proved to be very expensive, the government decided to impose a legal requirement upon the citizens for paying income taxes.

At the beginning, 15 April was not the deadline for filing your returns. At the time it was set for 1 March. In 1918, the date was changed to 15 March. Finally in 1954, the date was fixed at 15 April, and since then it has been in force. Now, it’s been just over a 50 years and this date has not been changed again. But the possibility of revising this date again cannot be ruled out.

It’s a requirement for every individual taxpayer to file tax returns by 15 April or at least Form 4868 must be filled to take an extension. Legal as well as corporate firms are expected to file tax returns by 15 March, or at least they have to file for a date extension. This extension provides an extended amount of time to pay the taxes and file your returns but you have to pay some interest. Therefore, failing to prepare your taxes on time means that you will have to pay a penalty for your untimely behavior.

After World War 2, the individual taxpayer and the corporate world used to share the tax burden equally. But now, the individual taxpayer is more heavily burdened. Due to public outcry and general protests by the common people, the American government officially cancelled the income tax law in 1867, and during the period from 1868 to 1913, most of the government revenue was generated through selling of wine, beer, tobacco, and liquor.

It was an interesting period around 1918 when eventual taxation rules were formulated in America. Till then, it was the sale of alcoholic beverages which brought in the maximum government revenue. After the new constitutional amendment of 1919 passed by the Congress which made selling and manufacturing alcohol and alcoholic product in the country illegal, revenue generation became a major concern. They then came up with the idea of income tax. During Prohibition, the revenue agents worked hard to track down the bootleggers rather than tax evaders; the tax load started becoming heavier over time for the individual taxpayers.

“New Deal” era began with the passing of the “1942 Revenue Act”. Since then there have been phenomenal increases in the government expenses, power, and control; and now the big-budget American government is supported by the individual taxpayers. More then 10 per cent of the earnings of every individual is consumed by it and through the Social Security Administration, it can consume even more. There is no other relief mechanism in view at present.

With 4 main divisions, namely, the Wage and Investment, the Large and Mid-size Business, the Small Business Self-Employed, and the Government Entities and Tax Exempt, the IRS takes the responsibility of all tax regulations in the country. Each division has well-defined responsibilities as per their own specialty.

Tax and Your Well-Being

Tax and Your Well-Being

Tax issues and tax problems are some of the very threatening things to your well- being. There are three common mistakes many people make to find trouble with the IRS. These people delay needlessly. They try to exemplify themselves. They normally would appoint some inefficient agents for their work and finally fall into circumstances where they would need more help.

A tax attorney provides the relevant services in such situations, e.g. penalty abatement petitions, offer in compromise cases, business strategy sessions and full audit representations. They also provide help in preparation and tax return filing. … Read more at 2011 Tax.

Tax and Your Well-Being

Tax issues and tax problems are some of the very threatening things to your well- being. There are three common mistakes many people make to find trouble with the IRS. These people delay needlessly. They try to exemplify themselves. They normally would appoint some inefficient agents for their work and finally fall into circumstances where they would need more help.

A tax attorney provides the relevant services in such situations, e.g. penalty abatement petitions, offer in compromise cases, business strategy sessions and full audit representations. They also provide help in preparation and tax return filing. Get help from the tax attorney to save on your taxes, to stop giving extra to the IRS, to settle your property-related issues and acquire installment agreement, to lessen your interest amount and penalties, and so on. With the help of a good IRS tax attorney, you can attain very favorable settlement of issues related to taxes, and also you can lower your tax liability significantly. The “offer in compromise” program from IRS helps the taxpayers settling down their debt in taxes.

What is the offer in compromise program from IRS?

This program helps to lessen your tax liability to a significant extent if you can prove you’re unable to pay your taxes. Looking at your affordability, IRS will issue an order so that you can pay a few pennies for every dollar that you owe. This is in fact a very nice strategy most taxpayers use; and once done properly, it saves a lot of money. But you have to be extra careful. A professional having adequate knowledge of all IRS procedures must be hired. This professional will be able to find out the least amount the IRS will charge from you. An offer that is not correctly submitted with necessary documentation may be rejected and finally you might have to pay a lot extra.

This “offer in compromise” can really save you huge money. Do you have the idea that there is only limited time with the IRS for collecting back taxes? The professional tax attorney can determine when the time limit of the IRS runs out for collecting taxes. In majority of the cases, there is very small amount of time in the hands of the IRS for collecting unpaid taxes. A careful evaluation of exactly when this time runs out is necessary. Then you may be saved. In case the time period has already run out, or it is going to run out soon, all your problems might end.

Using certain delaying tactics, the time limit of the IRS may be made to run out. As soon as the IRS goes out of time, all their collection actions have to stop.

The IRS has to give you back all your property rights.

Failing to file your tax returns

There could be many reasons why many people cannot file their income tax returns on time. Even though there are certain innocent reasons, the fact in majority of cases is that they cannot afford their taxes.

It becomes difficult getting back to the system once this happens. Suppose you filed for 1998. Then you didn’t file for 2000 as you couldn’t afford to pay your taxes. Afterwards in 2001, you were afraid to file again. So since then you have not been filing your returns. Is there anything you can do now?

It is a criminal offence to not file your tax returns. But nobody so far has been prosecuted criminally who has filed back returns voluntarily before getting caught. The key is to file before being caught by them.

IRS penalties

The penalties of IRS may be even 100 percent to 150 percent of original unpaid taxes. The extra penalties are sometimes so high that it becomes truly very difficult to pay back the whole balance.

The penalties imposed by the IRS are meant for punishing the rule-breakers. But the IRS can forgive you and save you from paying the extra. You need to give a convincing explanation to the IRS, requesting not to punish you as you were not guilty.