Tag Archives: Help with IRS

This past week, a bill was introduced in the House of Representatives that would provide individual or business tax relief by giving the IRS the power to release a tax levy when the imposition of the levy would cause economic hardship. The bill, identified as the Tax Levy Relief Act of 2012, was introduced by Representative Jim McDermott, a member of the House Ways and Means Committee. At a time when many businesses are having difficulty meeting their tax obligations, McDermott’s bill is designed to provide tax relief by giving the IRS the discretion to decide the best way to … Click to Read More

Early last month, the California Board of Equalization (BOE) sent letters to 16,738 retail business owners stating that the Statewide Compliance and Outreach Program (SCOP) Team would be paying them a visit. The purpose of the visit is to educate them on sales and use tax reporting, tax compliance, and make sure their businesses are properly registered with the correct permits and licenses. Along with trying to collect what the BOE claims is $2 billion in owed taxes that have not been collected, the BOE said that the 2% of California businesses that are not operating with the correct permits … Click to Read More

A new bill was recently introduced in the House of Representatives that would allow companies with less than 500 employees to take an additional 20% tax deduction. Under this new proposal, small businesses would have the option of taking a 20% reduction on their annual domestic business income after they have taken all other available tax credits. The new deduction would be optional, so if for some reason the company would save less by taking the 20% reduction, they could opt not to use it. While both Democrats and Republicans have been interested in talking about business tax breaks, it … Click to Read More

What are the most common tax mistakes for small businesses? Four small business tax mistakes topped the list of a recent Xero survey of 500 accountants. Failure to separate business and personal expenses  Mixing business and personal expenses was the top mistake noted by 45% percent of those polled. Without professional help, you may trigger an IRS audit or be noted to have excessive income deductions. Forgetting to count the home office  A small business’ most commonly overlooked deduction is the home office, said 29% of the accountants. Some home expenses can be deducted and lower your taxable income, but … Click to Read More

While taxes for 2011 are due in April, it is important to take care of any IRS notices and bills from past years that were not paid when due, called back taxes. Here are some frequently asked questions about back taxes in relation to business tax preparation. What back tax issues are commonly encountered by small businesses? · Due to the complexity of tax law, many small business owners do not know how to use available deductions to reduce their lax liability and therefore end up with tax balances that are more than the business can afford to pay. · With the current … Click to Read More

When starting or expanding a business, it is important to know how to deal with employment taxes. While they seem to be automatic when you are an employee, employment taxes are calculated and withheld by the businesses and then paid to the IRS. Here is more information on employment taxes for your business to help your business tax preparation go smoothly. What are employment taxes? Employment taxes are a variety of federal, state, and local taxes that must be withheld by business owners from the paychecks of their employees. What types of employment taxes are businesses required to pay? Employment … Click to Read More

Are you never quite sure what original information to save after you file your annual tax return? In this article, we discuss what business tax documents you must keep and how long to keep them. Good bookkeeping is difficult to manage for many businesses. Let’s face it—your priority is to keep the business running from day to day. It might not seem like it but now, as you prepare to file your business taxes for 2011, is actually the perfect time to develop good record keeping habits. Keeping organized records throughout the year is vital to making sure you have … Click to Read More

When your new employee fills out a W-4, it affects their withholdings for Federal Income Tax, Social Security, and Medicare. What does it mean for the business owner? Businesses are required by the IRS to withhold taxes from employee wages, and then pay them directly to the IRS. This usually occurs on a quarterly basis in March, June, September, and December.  This type of tax is called a Payroll Tax. In some instances, the IRS allows a business to file payroll taxes annually instead of quarterly. Payment can be made electronically or in person at an authorized financial institution. The IRS … Click to Read More