Easy Tax

You have the right to be treated professionally, fairly, promptly and courteously by IRS ..... For technical details, refer to IRS Publication 594. To make a long story short: You have the right disagree with your tax bill; however, you must show proof and/or documentation to support your belief. If it is decided by IRS that your tax bill is correct, then it is best to find a way to pay your tax bill as soon as possible. (Interest and penalties compound daily) If you cannot fully pay your taxes, pay as much as you can. Then immediately request a payment plan. IRS may ask you to fill out a Collection Information Statement to help them compare your monthly income with your expenses to[..]

If you own an S Corporation, you must file Form 1120S every year to report the income and expenses of your small business. The purpose of this article is to help you properly report all the legitimate expenses you are entitled to take. Like any business owner, you are in business to make a profit. But you also don't want to pay more tax than required, so read on to make sure you know where to report expenses on Form 1120S. Form 1120S has three places for you to report your expenses: 1. Schedule A, Cost of Goods Sold. If you sell a product and maintain an inventory, you must calculate your cost of goods sold. Form 1120S provides a special section to do this calculation; it's called[..]

If you are among the growing number of people who work in a home based business then the privilege to claim home business deductions is for you. This line of allowable deductions with the internal revenue dues of a certain person or business entity are expenses that were either directly or indirectly made for the operation of the business. Among the direct expenses that falls as a deduction is the actual conversion of a certain part of the house to a business office or commercial rule. On the other hand, systems that were installed in to tighten the security as well as polishing the interior of an office fall as an indirect. The internal revenue office is not actually concern about the[..]

Looking for an easy way to increase your business deductions? Look no further than your driveway. First, the general rule: your vehicle is deductible to the extent you use it for business. So, if you drive your car 100% for business, all car-related expenses are deductible. But if you use it less than 100% for business, do not despair. Less-than-100% use is very typical among small business owners and the self-employed -- you'll still come out way ahead by keeping good vehicle expense records. For example, if you drive your car 75% for business, then you get to deduct 75% of your vehicle expenses. Now to the fun part. There are two methods for reporting your car expenses: 1. Actual[..]

In New Zealand prior to 2001 anyone who was paying tax had to declare this at the end of the year to Inland Revenue on a form called an IR5. This was hard on those who were not very good at keeping records etc. In 2001 New Zealand introduced the PAYE system or Pay As You Earn. The way this system worked was that tax was deducted from your employer and and paid directly to Inland Revenue before you even received this. With the new PAYE system there was no need for the IR5, thus for the regular salary and wage earners there was the personal tax summary. As Inland revenue now had a record sent to them monthly regarding your income and tax amount, Inland revenue could see if you had paid the[..]

One of the most tourist attracting pieces of the US is gambling. People come from here and there, in country and out of country, flocking to casinos and taking their chances at hitting big. For those that win, they will likely pay a 30 percent tax on the gambling money, which will come back in the form of a gambling tax refund. When you won the money, it is likely the 30 percent tax was taken out immediately, whether or not you are a citizen. If, in the event you aren't a citizen, this money is owed back to you as the US gambling tax refund, which is best pursued with the assistance of professionals that are familiar with IRS operations. There are various eligibility requirements for the[..]

The IRS Imposes Taxes On Prize Winnings If you are reading this right now, there is a good chance you have hit a US casino jackpot, and have been assessed the 30% tax on casino jackpots.  The tax on casino jackpots is imposed depending on the gambling game, and the amount won.  For example, slot taxes are imposed on slot machine jackpot winners when the slot jackpot is at least $1200.00 USD.  Slot taxes aren't imposed on casino wins up to $1199.99 USD, but the slot taxes take effect for anything above this amount.  Bingo jackpot winners have IRS taxes on prize winnings imposed on them too.  Bingo jackpots have a minimum threshold of $1200.00 USD as well.  However the taxes on Keno[..]

In order for you to qualify to get a gambling tax refund, you have to be able to prove that you were a resident of another country at the time you won your money at the casino.  The winnings have to have taken place in the past three years and you need proper documentation as to your residency at that time.  You stand to get back up to 30 percent of the money you won when you get a us gambling tax refund from the US government.  This can be substantial if you have won a great deal of money in the United States. Trying to get a US gambling tax refund can be tricky for most non US residents as they are not familiar with the process.  Many non US residents are not even aware that they[..]

This topic has been on my mind for a while. Is it better to receive a large tax return or a small one? Many people love tax season because it is usually a chance for them to get an infusion of cash. They may use this money to buy a large ticket item, do repairs around the house, pay off some bills, etc. This is more of a personal choice for most people. Let's explore the reasons why large refunds are good or not. I have tax clients that love when I tell them they are getting a refund of $10,000. I cringe when I see refunds that large. These are usually the same people that complain they have no money month to month to take care of bills. This kind of situation happens, in my opinion for[..]

How great an idea is that?! Have the Feds and the states pay tax refunds in your choice of lottery tickets or gaming chips. That would give us all hope for the future! We appear to have zero chance of improving our stations in life as it is, so why not just get it over with and gamble away our tax refunds the same way Federal and state governments have already gambled away everything else we've paid out to rescue their partners on Wall Street and Corporate America? It only makes sense. Why not continue running things in the same clear, consistent manner as always? They dole out American Taxpayer monies to the people who deserve them the least: Too Big Too Fail Corporate America. Maybe[..]

First, unless you are planning on going public or have hundreds of stockholders do not form a C Corp to begin with. Use an S Corp or an LLC. If you currently are a C Corp ask your attorney or tax advisor about converting to an S Corp. If you sell your company within a 10 year period of converting to an S Corp the sale can be taxed as if you were still a C Corp. Here is what happens when there is an asset sale of a C Corp. The assets that are sold are compared to their depreciated basis and the difference is treated as ordinary income to the C Corp. Any good will is a 100% gain and again is treated as ordinary income. This new found income drives up your corporate tax rate, often to the[..]

Disabled taxpayers might qualify for many tax credits and benefits. The parents of disabled children might also qualify for some of the following tax breaks. If you are legally blind and file the Standard Deduction, you might be qualified for a larger deduction. Veterans Administration Disability benefits and Social Security Income are excluded from your gross income. If you have Related Work Expenses associated with your employment because of disability, you might be able to claim business expenses associated with your workplace. These expenses must be undertaken in order for you to be able to perform your job function. Credit for the Elderly or Disabled is generally available to[..]

For those of you who are involved in the trucking industry, you're probably no stranger to the Heavy Vehicle Use Tax, but others out there are just getting started and want to be sure they are meeting obligations. Even the veterans of the industry may not catch all the changes as they come. So I want to go over the different ways to file tax form 2290 to give everyone a basic idea of what's going on. What is It? For those of you really trying to get a glimpse of what it means to be a trucker, the Heavy Vehicle Tax is a tax that the government requires be paid by the professional men and women who use large machines to do business on our streets and highways. In theory, it is paid by[..]

As a small business owner, you most likely dread hearing the words "tax season." This time of year forces you to wear many hats. You're not only responsible for filing your own taxes, but your employees are also relying on you to issue W-2 forms to them early in the season, so they can get to work filing their own taxes for the year. You need to provide them with accurate information in a timely manner, and depending on the size of your business, you may be responsible for doing this all yourself. Finding the time to simply gather all this information is difficult enough. You must first go through your books for the year and ensure that the final income amounts, minus any deductions, are[..]

Based on the questions I get from the readers of my website, many people are confused about how their single member limited liability company will be taxed. Questions like: I am trying to figure out how I will be taxed as a single member LLC, which forms do I need to use? When I pay myself, how much to I need to withhold for income tax? I understand that an LLC can be taxed as a sole proprietor but does that change if I give myself a salary or commission? Will I be taxed on both the profit from the llc and the income that I pay myself? So let's answer these questions by starting from the big picture overview. A limited liability company is not taxed separately as a corporation at the[..]

To most people who are facing large debt problems, reducing the amount owed is a great help. However, this can be impossible with IRS because the agency will try to collect what you owe in full or through a payment plan. There are ways to reduce the penalties or fees but since the procedure is complicated, few taxpayers are able to take advantage of the tax debt relief offered by the agency. Once you're unable to file your return, the amount you owe to IRS will incur interest. This only means that your debt adds up everyday. Realizing this fact, you should act on your dues immediately. If you continue to avoid the IRS and your tax debts, you will only end up with more debts because of[..]

Incurring a lot of tax debts can give you a lot of stress and headaches. If you don't want to suffer any longer, you can reclaim your debt-free life through tax debt relief. The IRS can provide you with excellent options to handle your tax dues with ease. The solutions usually differ in terms of the required paperwork, terms or period, and the degree of difficulty to obtain such solution. The best solution would be to pay your debts in full but since most taxpayers are on tight budgets, this would be impossible. One way to cover such an amount in full is through borrowing from a bank, friends, or family members. Some people also make it a habit to pay off their tax dues by using credit[..]

Planning for the future and for your beneficiaries is becoming increasingly important and these days one of the key considerations in this planning is for Inheritance Tax. Right now the inheritance tax (IHT) threshold is £325,000 for an individual or £650,000 for civil partnerships or married couples. This means that any assets owned by the deceased by the date of death that exceed £325,000 in value will usually be charged IHT at the hefty rate of 40%. Of course, there are exceptions including, for example, leaving part of all of the estate to a spouse (or civil partner). And you can also leave various cash gifts each year to individuals to reduce the size of your estate, thus[..]

I own some rental properties. Can I get any kind of deductions from those properties? You can and here's how: If you're paying a mortgage on the property you can claim the interest on the loan as a deduction. Now you do have to report the rent you receive as income on your tax return, so don't forget that. But any repairs or improvements you make on those rental properties are valid deductions. If I owe the IRS money and I'm able to sell a house can they seize the money I make off of that? Absolutely, the commission you make off of a house sale count as wages as far as the IRS is concerned and they can seize any money you make to pay down the debt you owe to them. The IRS won't take it[..]

Many times you will hear of people who have sold or exchanged a portion of their tournament action to help cover the costs of playing in tournaments. In other words, this player has agreed in advance to split his winnings with another person or a group of people. Depending on the size of the tournament, this has the potential to get the players and those people who have purchased a share in the players action in to a potentially difficult tax situation. It is the casino's responsibility to report the winning player's monetary win to the IRS. The casino would normally issue each winning player a W-2G form for the full amount of their win. The winning player would then add this to their[..]

Like to play the ponies? Hooked on Texas Hold’em? Enjoy spending a day in a Casino out of the elements? Gamblers may love a bit of gambling, but there is a tax side to your gaming that you need to keep an eye on or suffer the wrath of the IRS. The first thing to understand is gambling winnings are taxable. Lucky you. This means winning from every kind of game including the basics like lotteries to more sophisticated gaming like horse racing, craps, poker tournaments and sports betting. This is also true for winnings that include things other than cash such as vehicles or trips. If you have a non-cash winning, the tax is based on the fair market value of the item. If the vehicle[..]

st question that needs to be answered usually is whether or not your child even has to file taxes this year. The answer is this: A child who earns more than $5,350 as an employee (that is, as reported on W-2s) and whose parents claim him as a dependent must file. If that child claims himself as a dependent, he must file if he earns more than $8,750 in W-2 income. If, however, the child works as an independent contractor, he must file (because of self-employment taxes) if he earns more than $400. Children who earn less than the above are not required to file, but often should because they can get all withheld income taxes refunded. If your child earns money and chooses to file a return,[..]

Maybe your company is in the process of starting to automatic deductions for charity and you are considering if this is the best option for you. Automatic deductions for charity has some really good benefits. But there is always two sides to every story and some will offer the opinion that doing automatic charity donations is not a very good option if you are wanting to really give to charity the way it is supposed to be done. What are the benefits of automatic deductions Some of the best benefits for having the automatic deductions is that you will not have to worry about contributing to charity and it usually comes out before taxes as well, so you get those benefits as well. This is an[..]

Tax season will be here before you know it, but one thing you may not know is that because of an alliance between tax filing software companies and the IRS, free tax filing online is available. This is generally open for the new tax year from the 15th January, so you can file your taxes ahead of time and not have to deal with the stress and rush of waiting till the very last minute. It is hard for some people to believe that tax filing can be done for free in a simple and straightforward manner, and they are still paying someone else to write up their taxes for them. While there is nothing wrong with seeking guidance or professional help, we all like to save a buck, don't we? But the[..]

"Depreciation." For business owners, this word is the one most likely to inspire headaches and fits of cussing. The expanded provisions of Section 179 are just the medicine you need to cure the depreciation blues. Depreciation Traditionally, if your business property had a life of more than one year, the cost had to be deducted over several tax years. The number of years depended on the characteristics of the property, which made depreciation the flag-bearing example of the complexities of the tax code. Shockingly, the federal government has provided substantial relief to business owners. Section 179 of the Internal Revenue Code has been dramatically expanded to the benefit of[..]

If you have or hold office in your home, you can get tax deductions for it. The deduction depends mainly on how much space you use as office, or how often you use it. The qualifying indicators are: - You are self-employed, work-at-home employee or has no other workplace - Considers an exclusive part of your home as 'office' - It is where you regularly (often, nor rarely) receive visitors, patients, customers or clients in the normal conduct of business - Your business gross income exceeds the deductions As an office, the space should be your main workspace, where you do or conduct your business or your administrative or management work. The latter definition encompasses the space used by[..]

A loan you give may sometimes go bad, which means that there is no chance for its recovery. If the income that was loaned out as debt was included in an earlier return, you are eligible for tax relief by deducting the bad debt from your income in the current year's return. If you are reporting your income on a cash basis, you may not have included the income receivable from somebody as an income. In such a situation, naturally, no claim of can be made. Bad debts fall into two categories. The first category is the business bad debt, which, as the name implies, relates to your business. Advancing a loan to others is a common business transaction. Sometimes loans are advanced to customers[..]

The almighty dollar is not as mighty as it used to be and one of the reasons is the growing number of tax delinquents who are filing for bankruptcy, succumbing to foreclosures, and having their assets seized. As evidence of these are growing all across the country, the government has decided to administer damage control by way of tax relief. To stimulate the flagging economy, the government is issuing tax relief checks to over 117 million taxpayers this year, even to those without taxable income but who still file their taxes. You can receive amounts between $300 to $1,200, and more if you have dependents. The important thing is that your taxes are filed on time. Think of it as a little[..]

There is some welcome news for people who pay property taxes in the state of Washington. The state has enacted some regulations that will help certain property owners defer their property taxes. Basically, the property tax relief program allows homeowners to defer half of their taxes each year as long as they qualify for the program by meeting certain requirements. Some of the requirements that are necessary in order to obtain this tax relief from the state are listed here. First of all, the applicant must have owned his or her home for the past five years and must be a current resident living in the home. The combined household income cannot be more than $57,000.00. Also, the first half[..]

If you are looking for tax attorney jobs, there are many online options for you to utilize, and these can ensure that you remain busy and your working schedule stable throughout the entire year, not merely during the pretax season. People need these services on an increasing basis as the tax code becomes longer and more complex with each passing day. The layperson needs instruction and guidance for their business and for all dealings with the IRS, and it is the tax attorney's duty to be sure that things are in order, as well as to confer with other professionals in order to keep a steady and current account of the books. You might check online job boards for tax attorney jobs, though[..]

Saying goodbye...What happens when a loved one passes away and leaves an IRS debt behind? Does that debt fall onto you? Or can the IRS collect on a deceased person's tax debt at all? The only way the debt can fall to you is if you filed jointly at which point you would become the primary debtor and still owe the IRS. A family affair...However, if that isn't the situation then who does have to pick up the tab? After all the IRS doesn't like to give up on any money it's owed; even if the IRS has to dig up grandpa's corpse to get it. I never had to disrespect the final resting places of the dead when I was an IRS-Hitman. We took care of seizing any personal valuable before your loved one[..]

Sound the Alarms! If you're having a tax issue and you filled out an online application looking for help, be careful! Some of the companies that you speak with can end up doing more harm than good. Take a look at the warnings below so you can be prepared for some of the things you'll hear: Prices Subject to Change! Beware of any company that requires a "Retainer Fee" or "Retainer Agreement." These companies will charge you what seems to be a fair price, when they really intend on charging you a higher price later. Retainer means they have the legal rights to change your fee at any time. If a company you speak with mentions the word "Retainer," hang up the phone. No Refunds! Watch out for[..]