| It is tax time again and most people don't realize there | | | | prepared by either your in house computer system, a |
| is a great opportunity to get refunds and generate | | | | bookkeeper and/or outside accountant. Additionally, |
| found cash flow at the corporate, business and | | | | you should make sure that your bank accounts are |
| individual levels.. Instead of waiting for the dreaded | | | | reconciled therefore all cash transactions have been |
| March and April deadlines, it is important to consider | | | | accounted for. Depreciation and all other bookkeeping |
| getting your tax returns done early this year. | | | | adjustments should be recorded, therefore giving you |
| Many businesses have lost money in 2008 due to the | | | | an accurate 2008 balance sheet and profit and loss |
| bad economic times. If you had business losses at the | | | | statement.These 2008 financial statements with |
| corporate and/or proprietorship levels for 2008 and | | | | appropriate tax adjustments should be compared to |
| had income for either/ both 2006 and 2007, you could | | | | the 2006 and 2007 federal income tax returns. In order |
| be eligible for a net operating loss carryback which | | | | to get carryback refunds from prior years, the current |
| could generate a substantial tax refund...This could | | | | tax return must be filed first making you eligible to get |
| generate a substantial amount of available cash that | | | | carryback refunds from prior years. |
| you may not have anticipated.. You should also consult | | | | Here is a brief edited example.... Lets assume the C |
| your tax professional to ascertain where you stand. | | | | Corporate Tax Return for 2006 generated taxable |
| Additionally, individuals should be talking with their tax | | | | income of $30,000 and 2007 taxable income was |
| advisor to see if there is tax refunds due to them for | | | | $40,000. For the current year, the corporation lost |
| either overpayment and/or new tax benefits offered | | | | $100,000 and paid in estimated taxes of $10,000 for |
| by the government....This could generate needed cash | | | | 2008... Based upon this example, the corporation would |
| either to invest and/or survive debt demands..... | | | | receive its $10,000 estimated taxes back and could |
| Many businesses have lost money in 2008 due to the | | | | carryback the $100,000 loss back to 2006 and 2007 |
| bad economic times. If you had business losses at the | | | | and recover those taxes paid in those years. In |
| corporate and/or proprietorship levels for 2008 and | | | | addition, the remaining $30,000 unused losses could be |
| had income for either/ both 2006 and 2007, you could | | | | carried forward to year ended 2009 and offset |
| be eligible for a net operating loss carryback which | | | | against future taxable incomes....Please consult a tax |
| could generate a substantial tax refund...This could | | | | professional to go over the exact details of your |
| generate a substantial amount of available cash that | | | | situation..... |
| you may not have anticipated.. You should also consult | | | | Companies that have sole proprietorships or pass thru |
| your tax professional to ascertain where you stand. | | | | entities like a S Corporation and/LLC may be able to |
| Additionally, individuals should be talking with their tax | | | | recover business taxes at the personal level. Once |
| advisor to see if there is tax refunds due to them for | | | | again, obtain all your information for 2008 and sit down |
| either overpayment and/or new tax benefits offered | | | | with a qualified professional to plan out and execute |
| by the government....This could generate needed cash | | | | your situation...In conclusion, start off 2009 with a quick |
| either to invest and/or survive debt demands..... | | | | jump with preparing your tax returns early vs the |
| In order to obtain these objectives, it is highly | | | | normal last minute and/or extension type thinking. |
| recommended you get your 2008 books, financial | | | | These tax refund monies could be used for any |
| statements in order to ascertain where you stand for | | | | purpose and get the year off to a good start... |
| the calendar year ended 2008. These books can be | | | | |