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Tag Archive for Tax Filing

IRS Offers Payment Plans For Those Who Filed Taxes But Did Not Pay

The Internal Revenue Service today advised those now receiving tax bills because they filed on time but didn’t pay in full that there are many easy options for paying what they owe to the IRS.

If a tax return was filed but the balance due remains unpaid, the taxpayer will receive a letter or notice in the mail from the IRS, usually within a few weeks. These notices, including the CP14 and CP501, both of which notify taxpayers that they have a balance due, are frequently mailed in the months of June and July.

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Many Tax-Exempt Organizations Must File Information Returns By May 15, 2018

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

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

IRS Audit Triggers: 10 Red Flags To Avoid

Robert Hartman, Tax Advisor, Tax Blog, Gambrills, Maryland, USA, TaxConnections

In 2017, the IRS received more than 152 million tax returns from individuals, married couples, and businesses. And these numbers are predicted to increase for 2018. With so many people filing, you’d think it’s highly unlikely to get audited. However, you should think again. Since the IRS began allowing e-filing, many people have been filing taxes themselves, which means they’re more likely to make mistakes.

This is one important reason why the IRS set up a filter system to pay specific attention to certain parts of your tax return and flag them if they seem suspicious or potentially inaccurate. You’ll have a much better chance of avoiding an audit if you keep these 10 IRS audit triggers in mind when you file your taxes. Read more

People With Special Circumstances Get Extra Time To File 2017 Taxes

Tom Kerester, Tax Blog, Tax Ambassador, Washington D.C., USA, TaxConnections

WASHINGTON — The Internal Revenue Service today reminded taxpayers that they may request an extension of time to file their tax return, but certain taxpayers get extra time without asking. The IRS said nearly 14 million taxpayers are expected to get an extension this filing season.

Anyone can receive a six-month extension to file their tax return by using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Even with an extension, taxpayers should remember that the extension does not affect any tax they owe. Tax payments are due on or before the April 17 tax deadline. Read more

How To File U.S. Tax Return If You Are A U.S. Citizen Living In The UK

Olivier Wagner, Tax Traveler, Tax Blog, Vancouver, Canada, TaxConnections
Recently we’ve been asked to cover the topic on filing US federal income tax return if you are a US citizen living in the UK. You asked and we delivered! Read further to learn more about your US and UK tax obligations.
The starting point for any US expat tax-related topic is gaining a clear understanding who needs to file US taxes. Individuals, who are US citizens, including the ones with dual citizenship (UK/US in this case), or Green Card holders abroad who earn a minimum threshold for filing a US tax return are required by US tax law to file a tax return and pay taxes you may owe. Below are numbers for 2017:

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Rushing To File Taxes Can Result In Errors; E-File Decreases Errors, Extensions Available

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

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

Tax Tips For First Time Filers

Nanda Kumar, Tax Blog, Tax Advisor, Sterling, Virginia, USA, TaxConnections

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

Missed The March 15 1042-S Filing Due Date? Better Hurry Up!

Daniel Gray, Tax Advisor, Tax Blog, Toronto, Canada, TaxConnections

The following penalties apply to the person required to file Form 1042-S. The penalties apply to both paper filers and electronic filers. Late filing of correct Form 1042-S. A penalty may be imposed for failure to file each correct and complete Form 1042-S when due (including extensions).

The penalty, based on when you file a correct Form 1042-S, is: $50 per Form 1042-S if you correctly file within 30 days after the required filing date; the maximum penalty is $545,500 per year; if you file after August 1 or you do not file correct Forms 1042-S; the maximum penalty is $3,275,500 per year. If you intentionally disregard the requirement to report correct information, the penalty per Form 1042-S is increased.
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How Long Should You Keep Business Records For Tax Purposes?

Small Business, Business Records, Tax Return, Tax Preparation, Tax Filing, Tax Season, Mile IQ, IRS, Tax Blog, TaxConnections

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

Taxpayers – 7 Reasons Why You Should File Your Tax Return Early

Nanda Kumar, Tax Blog, Tax Advisor, Sterling, Virginia, TaxConnections

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?

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Get Ready To File Taxes

Michael Madewell, Tax Advisor, Ozarks, TaxConnections

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

The 6 Most Basic Rules Of Tax Preparation

Dealing with kids and marriages

If you’re married or divorced be sure that you and your spouse’s last names match all social security records, because your return will be rejected if they don’t. Also, if you’re divorced with children, be sure you know who’s claiming the kids. The rule is that whoever files first will initially get the credit and if it’s not the right person, correspondence with the IRS will be required by both parties to resolve the matter. To avoid that mess, it’s something you NEED to work out beforehand. Read more

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