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Tag Archive for Tax Filing

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

Top 3 Reasons US Expats Should Catch Up With Their IRS Tax Filing Using the Streamlined Procedure

Hugo Lesser, Tax Advisor

Living abroad is an incredible adventure that inevitably broadens our horizons and minds, thanks to the perspective we gain from living in a foreign country and experiencing a new culture.Living abroad is an incredible adventure that inevitably broadens our horizons and minds, thanks to the perspective we gain from living in a foreign country and experiencing a new culture.

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What You Need To Know About Voluntary Disclosure

There are around 9 million Americans living oversees, and the IRS has its sights set on those expats who aren’t up to date with their U.S. tax filing.

All American citizens and green card holders are required to file a U.S. tax return, however because the U.S. is the only developed nation to tax its non-resident citizens, many haven’t realized that they have to file. Read more

Getting An ITIN Abroad – What American Expats Need To Know

Hugo Lesser

ITIN, Individual Taxpayer Identification Number, is a 9 digit number that is issued by the IRS that allows individuals who are not eligible for or who don’t have a social security number to file a U.S. tax return. Before such individuals can file their U.S. tax return though, they need to apply for an ITIN.

It’s important to note though that ITINs don’t qualify their holders to work in the U.S. or claim U.S. Social Security benefits; they are simply used to file U.S. taxes. Read more

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