One of the major accounting functions a small business owner has to fulfill is turning in their sales tax. Though there are some states in America that don’t have any sales tax, the majority either have sales tax or a similar general excise tax. A failure to report sales tax correctly could lead to substantial fines and penalties. Taxing the Wrong Items Some states tax products and other states tax both products and services.…
Read More »Many people put off paying taxes until the last possible day that they can file to put off dealing with numbers or facing a high tax bill. However, even if you owe the IRS money, there are benefits that come with filing your taxes early. Here are three reasons you should consider doing your taxes as soon as possible this year. #1 Thwart Identity Fraud Every year, millions of dollars of tax returns are claimed through false returns filed by individuals who have stolen someone’s identity.…
Read More »Filing a tax extension definitely is within the rights of U.S. citizens needing an additional six months to prepare their returns. Taxpayers confused about how to reconcile advanced tax credits under the Affordable Care Act may find that requesting additional time to file makes sense. No one wishes to botch the forms and then deal with various problems as a result. Unfortunately, some panic may set in after an extension is filed, advanced tax care credits are taken, and an unexpected letter arrives ahead of the October 15 extension due date requesting the return.…
Read More »If you are the sole proprietor of a new business this year, it is vital that you keep excellent records and prepare for tax time throughout the year. You should strive to file your taxes as soon as you can after the filing deadline so that you have that out of the way for the year and can use what you ended up paying in taxes to help you estimate your taxes for the next year.…
Read More »Businesses of all sizes must comply with regulations concerning payroll taxes. Many companies rely on a professional payroll service to help carry out their tax obligations. With the assistance of a certified public accountant (CPA), business owners can usually realize cost savings by moving the responsibility for payroll preparation from an outside firm back to the company. Like many other aspects of accounting, payroll preparation is well suited for automation. The frequency of required tax deposits is dependent on how quickly the deposits accumulate.…
Read More »Working in real estate can be a great way to work for yourself and have more flexibility while making a good income. But if you’re not careful around tax time, it can be a costly way to earn money. Between regular personal income taxes (both state and federal) and self employment taxes, you can lose between 15.3% and 54.9% (at the highest tax bracket of 39.6%) to the tax man. So, how can you reduce this number as much as possible?…
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