by: Richard A. Chapo
On of the largest burden on very small employers is dealing with taxes. Fortunately, the IRS has taken a major step to reduce this burden.
Quarterly Federal Tax Returns ? Not!
There are millions of small businesses that labor under the burden of filing federal tax returns each quarter of the calendar year. These quarterly returns have been a major gripe of business owners who often feel they see their CPAs more than their families. The IRS is finally listening. Well, sort of.
Beginning January 1, 2006, the quarterly federal tax return will go the way of the dodo bird for some small businesses. Instead of being required to file every three months, these small business will be allowed to just file an annual federal tax return with the IRS.
When it comes to taxes and the IRS, there is always a catch. So, what is it in this situation? The annual tax return procedure will only be available to very small businesses, often just sole proprietorships.
Under the new regulations, small businesses will only be eligible for the annual filing if their estimated annual employment tax is $1,000 or lower. Put another way, this equates to paying roughly $4,000 in wages in a calendar year. That is a significant catch.
Ostensibly, this new annual tax return procedure is designed to help mom and pop businesses or businesses that are barely running. Depending on the specifics of the regulations, however, a significant loophole may let a lot more people through the door. The IRS, for instance, categorizes a single member LLC as a sole proprietorship. As a result, the LLC doesn?t technically pay employment taxes. Instead, the member can simply draw money from the business and then report it on his or her personal taxes.
To find out if you qualify for the annual return option, just sit and wait. The IRS is going to send out notices to qualifying small businesses during the first two weeks of February 2006. If you don?t receive one, you can contact your CPA to see if there are any options for your business.
About The Author
Richard A. Chapo is with http://www.businesstaxrecovery.com - recovery of business taxes through tax help and tax relief. Visit http://www.businesstaxrecovery.com/articles to read more business tax articles.
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IRS Audit: What to Watch Out For; The Self-Employed Are in the Bullseye
IRS Audit: What to Watch Out For; The Self-Employed Are in the Bullseye
by: Howard Schwartz
Tax-Definition.org ( http://www.tax-definition.org ) is announcing the following IRS Audit Tips-
Tax Tips for IRS Audits: http://www.tax-definition.org/irs-audit/
According to latest reports, the Internal Revenue Service, or IRS, is increasing the total number of income tax returns selected for audit. But it isn?t as bad as it sounds, because the audit rate has actually gone down. On an average, the IRS audits
around 1 percent Americans every year. That minimizes your chances for receiving an audit notice from the IRS, but doesn?t completely rule it out.
On your part, you need to ensure that your tax return doesn?t attract unwarranted importance. This becomes more...
IRS Audit: What to Watch Out For; The Self-Employed Are in the Bullseye
Tax help > IRS Audit: What to Watch Out For; The Self-Employed Are in the Bullseye
Unclaimed Tax Refunds: How To Claim Yours
Unclaimed Tax Refunds:
How To Claim Yours
by: Gray Rollins
When a taxpayer owes money on their taxes they need to pay the amount owed before the traditional April 15th deadline. If the amount owed on taxes is not paid before the deadline, then federal and state governments can impose a number of late fees and penalties. While there are penalties for failing to a pay taxes on time, there are no penalties assessed to individuals who are due a refund but fail to file their tax returns on time. http://www.taxhelpdirectory.com/taxfiling/
Tax season is a stressful time for many taxpayers. With hectic lives and busy schedules it is likely that an individual may not find the time to have their taxes prepared. As previously mentioned, there is the chance of late fees and other additional penalties for individuals who owe taxes; therefore, many individuals who are expected to owe...
Unclaimed Tax Refunds: How To Claim Yours
Tax help > Unclaimed Tax Refunds: How To Claim Yours
Stop Throwing Away Your Tax Refund!
Stop Throwing Away Your Tax Refund!
by: Steve Hoven
Tax time is just around the corner. Are you getting a big refund this year? Well if you are, you are THROWING AWAY BIG MONEY!
CHANGE YOUR EXEMPTIONS ON YOUR W-4.
This is not the number of your dependents but the number of your exemptions!
If you are getting a BIG tax refund every year, you may love getting that check; however, you are actually giving the Government your money interest- free for a year. This is not a wise use of money .
The IRS stated, back in 2004, that the Average tax refund check was almost $2,300!!! That is almost $200 per month ($200 X 12 Months) that is given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300, you need to consider changing your exemptions.
Feel free to send me any of your extra money.
I will keep it for you until next year and NOT pay you any interest.
For example, if you got a...
Stop Throwing Away Your Tax Refund!
Tax help > Stop Throwing Away Your Tax Refund!
Federal Income Tax
Federal Income Tax
by: Matt Bacak
Federal income tax is withheld from the pay of almost all employees.
Employee pay is inclusive of salaries and wages, bonuses, commissions, and vacation allowances. It is the responsibility of the employer to provide the employee with a W-4 at the onset of their employment.
The determination of tax withheld is computed from the information provided on the W-4.
The employee must inform the employer of their withholding status (married or single), and the number of exemptions they will be claiming.
Employees also have the option to have an additional amount withheld from their pay.
If, over the course of an employee's employment, they wish to change or adjust their withholding rates, they may simply request to complete a new W-4.
Publication 919 ?Getting the Right Amount of Tax Withheld? is available from the IRS and can assist employers and employees in making the...
Tax help > Federal Income Tax
Understanding Employee Taxes
Understanding Employee Taxes
by: Matt Bacak
Employee taxes can be one of the most difficult to understand areas of running a business and hiring employees. If you don't understand all of the complexities involving employee payroll tax, it can also get you into a heap of trouble.
The first employee tax factor you should understand is what taxes you are responsible for as an employer. There are three employee taxes that you will be responsible for paying.
The first is Medicare and Social Security tax. This is often referred to as FICA and provides welfare benefits funding for senior citizens. As an employer you are responsible for paying half of the FICA taxes and withholdings for your employee while the remaining half is withheld from their paycheck.
You are also responsible for paying federal unemployment tax. This tax funds the state unemployment benefits and the administrative costs associated with those benefits. It is important...
Understanding Employee Taxes
Tax help > Understanding Employee Taxes
Stop Throwing Away Your Tax Refund!
Stop Throwing Away Your Tax Refund!
by: Steve Hoven
Tax time is just around the corner. Are you getting a big refund this year? Well if you are, you are THROWING AWAY BIG MONEY!
CHANGE YOUR EXEMPTIONS ON YOUR W-4.
This is not the number of your dependents but the number of your exemptions!
If you are getting a BIG tax refund every year, you may love getting that check; however, you are actually giving the Government your money interest- free for a year. This is not a wise use of money .
The IRS stated, back in 2004, that the Average tax refund check was almost $2,300!!! That is almost $200 per month ($200 X 12 Months) that is given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300, you need to consider changing your exemptions.
Feel free to send me any of your extra money.
I will keep it for you until next year and NOT pay you any interest.
For example, if you got a...
Stop Throwing Away Your Tax Refund!
Tax help > Stop Throwing Away Your Tax Refund!
Tax help
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