How can being late be more costly than being wrong?
There are trade offs in taxes. Being wrong (filing on time but not having all the information to file 100% correct) can be a trade off you have to make versus filing late when all the information is assembled.
Tax is full of trade offs. Many times people don’t realize there is a trade off available to them. They think they must do a certain thing or file a tax return a certain way. When in fact there are options. Knowing your options is critical to long term tax reduction.
Here is what we consider a classic example:
Let’s say your business has a Goods and Services Tax (GST) return due today. You do not have all the information to complete it correctly. Maybe an invoice you know that should be printed and sent to the client is missing. There is some GST on that invoice. Or maybe you know you are missing some expenses and the GST on those expenses. You also know that it is impossible today to get that information in time to meet the filing deadline. The people that have that information are away or just not responding to your questions.
Do Not Include Social Security Numbers Or Personal Data
WASHINGTON — The Internal Revenue Service reminded certain tax-exempt organizations that the Tuesday, May 15 filing deadline for Form 990-series information returns is fast approaching.
Form 990-series information returns and notices are normally due on the 15th day of the fifth month after an organization’s tax-year ends. Many organizations use the calendar year as their tax year, making May 15, 2018 the deadline to file for 2017.
No Social Security Numbers On Forms 990 Read More
WASHINGTON — As the April 17 tax-filing deadline nears, many taxpayers may rush to finish their tax returns or find that extra time is needed to get them done. The IRS recommends that taxpayers request a filing extension if they need one.
Mistakes can happen when hurrying to file a tax return by the due date. This can mean longer processing times and possible tax refund delays. Electronic filing is the best way to avoid common mistakes; it is also the most accurate way to file a tax return. The IRS estimates that about 70 percent of taxpayers can file their tax return at no charge by using IRS Free File software. Read More
A few of us received an intimation letter from the IRS stating that we owe them some money in the form of taxes. Sure enough, nobody likes to receive such emails. However, if you do here are some ways you can handle the situation without losing your sleep.
Do Not Delay
If you receive that envelope from IRS, do not be a skeptic and not open it at all. I have seen quite a few friends who just do not wish to open the envelope. There are chances that your tax filing might have a minor error that you need to fix. Whatever the reasons could be, do not forget to open and read the letter as soon as you receive it. Read More
Filing taxes for the first time? Don’t let all the experts and jargons overwhelm you. At the end of the day, if you understand some very basic points clearly, you shall pass this test as well. If you are out of the college or just took your first job, it is eminent that you take this step with a lot of seriousness. But not to a level that it becomes a mental block for you. We have outlined some simple tips for you to get through this.
Should You File? Read More
If you own a small business, you need to keep business records. These can include digital or hard copies. They may contain financial information and licenses. Business record retention is necessary for your annual tax filings. It’s also necessary for potential audits.
What Are Business Records?
You know saving business documents is important. Now, you need to figure out what documents to save. The term “business documents” can refer to many things, including: Read More
When a taxpayer changes their name, that change can affect their taxes. All the names on a taxpayer’s tax return must match Social Security Administration records. A name mismatch can delay a tax refund. Here’s what a taxpayer should do if anyone listed on their tax return changed their name:
- Reporting Taxpayer’s Name Change. Taxpayers who should notify the SSA of a name change include:
- Taxpayers who got married and use their spouse’s last name.
- Recently married taxpayers who now use a hyphenated name.
- Divorced taxpayers who now use their former last name.
Filing your taxes long before the April 15 deadline might not be your top priority, but there are many benefits to completing your return early. By filing early:
- You avoid the last-minute stress,
- Have time to plan for paying taxes you may owe,
- You can get your refund faster and
- Avoid fraud by filling out your tax forms sooner rather than later.
1. The Earlier You File, The Earlier You Get Your Refund
- A good reason to file your taxes early you’ll get your money sooner.
- According to the IRS, the average refund was more than $2,800 for 2016 and 2017 Tax Filers…so why miss on that earlier claim and why give you an interest free loan to IRS?
With the tax filing season right around the corner, the IRS encourages taxpayers to visit IRS.gov for tax tools and resources. Taxpayers can resolve nearly every tax issue on the IRS website.
IRS.gov provides many self-service tools and features, including these six: Read More
Filing season will begin on Monday, Jan. 29, the Internal Revenue Service announced.
The final tax deadline will be Tuesday, April 17. (April 16 is Emancipation Day, a legal holiday in Washington, D.C.). The IRS expects nearly 155 million individual returns to be filed in 2018.
In 2017, the IRS began accepting returns on January 23; it set the date at January 29 this year to make sure that its key processing systems are ready, and to give it time to determine how late December’s Tax Cuts and Jobs Act will impact tax returns. Read More
Whether you’re filing taxes yourself or having a tax preparer do them for you, it’s important to have all the necessary documents. Gathering them beforehand can save both time and frustration.
You should receive the majority of these documents by January 31, which is the new deadline for companies and employers to send out W-2 and 1099 forms. Each federal tax form is explained below so you can make sure you have everything you need to file your taxes. Read More
The good news. President Trump Congress keeps telling you that taxpayers will be able to file on a postcard.
The bad news? Look at lines 3, 10, 11, and 12.
Your government is naïve. While this may be wish-fulfillment, it has no basis in practical reality.
It should be a required pre-requisite for all lawmakers to prepare their own income tax returns before they are permitted to write, vote on, or pass legislation. I loved that episode of the short-lived TV series Mr. Sterling, where Senator Bill Sterling (Josh Brolin) is grumbling, trying to prepare his own tax return. Better yet, they should spent two weeks volunteering, or observing, at a VITA site to see how their tax laws truly affect low-income people’s tax filings. Read More