A Summary Of The Fiscal Cliff
Posted on: January 4, 2013
Late Tuesday Congress finally approved a plan that ended Washington’s long drawn out battle infamously known as the “fiscal cliff.” The House Republicans conceded to President Obama’s request to allow taxes to rise on the country’s wealthiest households. First, the senate approved the legislation then the House voted in its favor, 257 to 167, which sent the measure to Obama for his signature. The bill is known as the “largest tax cut in American history.” It will protect millions of middle class taxpayers from tax increases were set to effect in January. Though it will also let rates increase on … Click to Read More
IRS Releases 2013 Refund Information as Tax Season Approaches
Posted on: December 17, 2012
Though the holidays are currently in full swing tax season is lurking around the corner. The IRS has just alerted the public that they expect refunds to be processed as quickly in 2013 as they were in 2012. In 2012, 90% of taxpayers received refunds in less than 21 days. The amount of the average refund was $3,000. To see if you are going to get a refund you can use the new IRS system “Where’s My Refund?” on the IRS web page or click this link http://www.irs.gov/Refunds/Where’s-My-Refund-It’s-Quick,-Easy,-and-Secure. This is a new and improved system on the IRS web page … Click to Read More
Harsh Consequences for not Meeting Payroll Tax Deadlines
Posted on: November 26, 2012
What are the consequences of not paying employment taxes on time? When employment taxes are not paid on time, the IRS will impose harsh penalties due to the fact that a portion of these funds actually belongs to the employee and is simply being held in trust by the employer until the required tax amounts are paid. Business owners who fail to meet payroll tax deadlines can often end up having to pay the delinquent tax balances from their personal funds and, on occasion, can even end up in jail. What is the Trust Fund Recovery Penalty? The Trust … Click to Read More
Many Millionaire Taxpayers are Small Business Owners
Posted on: June 22, 2012
As recent tax initiatives have been aimed at collecting more tax revenues from millionaires, you may ask, just who are these millionaire taxpayers? According to research by the Tax Foundation, a group that advocates for lowering taxes, many of these millionaire taxpayers are owners of small businesses. It is more likely for partnership and S corporation small business owners to be million taxpayers than sole proprietors. Based on IRS data, the Tax Foundation calculated that 51% of partnerships and S corporations reported income of $1 million or more, as compared to 6% from sole proprietors. The study also found that … Click to Read More
How to Deduct Business Travel: Part 2
Posted on: June 15, 2012
You’ve traveled for business, and now it is time to figure out your business travel deductions. What is “ordinary and necessary” and can be deducted on your business tax return? Transportation Flight, train, and car travel to and from the convention or meeting is deductible. Travel by boat, such as an ocean liner or cruise ship, has a daily limit of twice the highest federal per diem rate allowable. Cabs are also deductible to and from the airport and conference or meeting. Lodging Hotel costs for days that you attended the conference and reasonable stays before and after are deductible. … Click to Read More