Category: SMALL BUSINESSES

November 8th, 2017 by Oscar

The IRS understands that taxpayers who owe money need choices on how they can make payments to the agency. IRS offers three easy ways to pay taxes. Taxpayers can pay online, by phone or with their mobile device using the IRS2Go app. Any time of the year is a good time for taxpayers to explore these payment options.

Additionally, some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the sharing economy might also have to make estimated payments.

Here are four options for taxpayers who need to pay their taxes. They can:

  1. Pay when they e-file using their bank account, at no charge from the IRS, using electronic funds withdrawal.
  2. Use IRS Direct Pay to pay their taxes, including estimated taxes. Direct Pay allows taxpayers to pay electronically directly from their checking or savings account for free. Taxpayers can choose to receive email notifications about their payments. The IRS remind taxpayers to watch out for email schemes. IRS Direct Pay sends emails only to users who requested the service.
  3. Pay by credit or debit card through a card processor for a fee. Taxpayers can make these payments online, by phone, or using their mobile device with the IRS2Go app.
  4. Make a cash payment at a participating 7-Eleven store. Taxpayers can do this at more than 7,000 locations nationwide. To pay with cash, visit IRS.gov/paywithcash and follow the instructions.
  5. Pay over time by applying for an online payment agreement. Once the IRS accepts an agreement, the taxpayers can make their payment in monthly installments.


 

Posted in INDIVIDUALS, SMALL BUSINESSES

November 6th, 2017 by Oscar

With 10 million taxpayers a year facing estimated tax penalties, the IRS offers some simple tips to help prevent a surprise at tax time.

People pay taxes on income through withholding on their paycheck or through estimated tax payments. Taxpayers who pay enough tax throughout the year can avoid a large tax bill and penalties when they file their return.

Taxpayers should make estimated tax payments if: a) the tax withheld from their income does not cover their tax for the year, and b) they have income without withholdings. Some examples are interest, dividends, alimony, self-employment income, capital gains, prizes or awards.

Here are five actions taxpayers can take to avoid a large bill and estimated tax penalties when they file their return. They can:

Use Form 1040-ES. Individuals, sole proprietors, partners and S corporation shareholders can use  this form to figure estimated tax. This form helps someone calculate their expected income, taxes, deductions and credits for the year. They can then figure their estimated tax payments.

Use the Withholding Calculator on IRS.gov. This tool helps users figure how much money their employer should withhold from their pay so they don’t have too much or too little tax withheld. The results from the calculator can also help them fill out their Form W-4.

Have more tax withheld. Taxpayers with a regular paycheck can have more tax withheld from it. To do this, they must fill out a new Form W-4 and give it to their employer. This is a good option for taxpayers who participate in a sharing economy activity as a side job or part-time business.

Use estimated payments to pay other taxes. Self-employed individuals can make estimated tax payments to pay both income tax and self-employment tax. Self-employment tax includes Social Security and Medicare.

Use Form W-4P. Generally, pension and annuity plans withhold tax from retirees’ payments. Recipients of these payments can adjust their withholding using Form W-4P and give it to their payer.

Posted in INDIVIDUALS, SMALL BUSINESSES

November 1st, 2017 by Oscar

El Servicio de Impuestos Internos (IRS) animó hoy a los contribuyentes a revisar sus retenciones. Hacer esto hoy, puede ayudar a asegurar que se retenga la cantidad correcta, ya sea para propósitos del reembolso o para evitar una factura de impuestos inesperada el año entrante.

La revisión de retenciones toma aún más importancia dado al cambio de ley que ocurrió el año pasado. Este cambio requiere que el IRS retenga los reembolsos por varias semanas de algunas personas que presentan sus declaraciones temprano y que reclaman el Crédito Tributario por Ingreso del Trabajo (EITC, por sus siglas en inglés) o el Crédito Tributario por Hijo Adicional (ACTC, por sus siglas en inglés). A su vez, el IRS y los administradores tributarios estatales continúan fortaleciendo las protecciones contra el robo de identidad y fraude de reembolsos, los que significa que algunas declaraciones de impuestos podrían enfrentar tiempo adicional de revisión el año entrante para proteger contra el fraude.

Al ajustar su Formulario W-4, Certificado de la Retención del Empleado, los contribuyentes pueden asegurar que se retire la cantidad correcta de su salario a través del año. Retener la cantidad correcta de los cheques, ayuda a asegurar que los contribuyentes no paguen demasiados impuestos durante el año, también significa que los contribuyentes tendrán dinero a la mano en lugar de esperar un reembolso grande luego de presentar los impuestos.

El IRS también pide a las personas a tener cuidado y verificar para asegurarse que se les retiene suficiente de sus cheques. Una retención demasiado baja puede resultar en una factura de impuestos, así como en una multa adicional. El IRS anima especialmente a las personas con un segundo trabajo, tales como aquellos en la economía compartida, o quienes experimentan un cambio de vida mayor a que verifiquen si se les retiene lo suficiente o si hacen pagos adecuados de impuesto estimados.

En muchos casos, un nuevo Formulario W-4 es lo único necesario para hace un ajuste. Los contribuyentes pueden entregarlo a sus empleadores, y los empleadores lo usan para determinar la cantidad de impuestos federales a ser retenida del pago. Pero recuerde: a los empleadores les toma tiempo procesar estos cambios en la nómina, por lo que cualquier ajuste debe hacerse rápidamente para que pueda tomar efecto durante los períodos finales de pago de 2017.

 

Posted in INDIVIDUALS, SMALL BUSINESSES

October 31st, 2017 by Oscar

Every Halloween, children knock on doors pretending they are everything from superheroes to movie stars. Scammers, on the other hand, don’t leave their impersonations to one day. They can happen any time of the year.

People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does contact a taxpayer in person. This can help someone determine whether an individual is truly an IRS employee.

Here are eight things to know about in-person contacts from the IRS.

  1. The IRS initiates most contacts through regular mail delivered by the United States Postal Service.
  2. There are special circumstances when the IRS will come to a home or business. This includes when a taxpayer has an overdue tax bill, when the IRS needs to secure a delinquent tax return or a delinquent employment tax payment, to tour a business as part of an audit and as part of a criminal investigation.
  3. Revenue officers are IRS employees who work cases that involve an amount owed by a taxpayer or a delinquent tax return. Generally, home or business visits are unannounced.
  4. IRS revenue officers carry two forms of official identification.  Both forms of ID have serial numbers. Taxpayers can ask to see both IDs.
  5. The IRS can assign certain cases to private debt collectors. The IRS does this only after giving written notice to the taxpayer and any appointed representative. Private collection agencies will never visit a taxpayer at their home or business.
  6. The IRS will not ask that a taxpayer makes a payment to anyone other than the U.S. Department of the Treasury.
  7. IRS employees conducting audits may call taxpayers to set up appointments, but not without having first notified them by mail. Therefore, by the time the IRS visits a taxpayer at home, the taxpayer would be well aware of the audit.
  8. IRS criminal investigators may visit a taxpayer’s home or business unannounced while conducting an investigation. However, these are federal law enforcement agents and they will not demand any sort of payment.

Taxpayers who believe they were visited by someone impersonating the IRS can visit IRS.gov for information about how to report it.

Posted in INDIVIDUALS, SMALL BUSINESSES

October 30th, 2017 by Oscar

New business owners have tax-related things to do before launching their companies. IRS.gov has resources to help. Here are some items to consider before scheduling a ribbon-cutting event.

Choose a business structure

When starting a business, an owner must decide what type of entity it will be. This type determines which tax forms a business needs to file. The most common forms of businesses are:

  • Sole Proprietorships
  • Partnerships
  • Corporations
  • S Corporations
  • Limited Liability Company

Determine business tax responsibilities 

The type of business someone operates determines what taxes they need to pay and how to pay them. There are the five general types of business taxes.

  • Income tax – All businesses except partnerships must file an annual income tax return. They must pay income tax as they earn or receive income during the year.
  • Estimated taxes – If the amount of income tax withheld from a taxpayer’s salary or pension is not enough, or if the taxpayer receives income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, they may have to make estimated tax payments.
  • Self-employment tax – This is a Social Security and Medicare tax. It applies primarily to individuals who work for themselves.
  • Employment taxes – These are taxes an employer pays or sends to the IRS for its employees. These include unemployment tax, income tax withholding, Social Security, and Medicare taxes.
  • Excise tax – These taxes apply to businesses that manufacture or sell certain products, operate certain kinds of businesses, use various kinds of equipment, facilities, or products or receive payment for services

Choose a tax year accounting period

Businesses typically figure their taxable income based on a tax year of 12 consecutive months. A tax year is an annual accounting period for keeping records and reporting income and expenses. The options are:

  • Calendar year: Jan. 1 to Dec. 31.
  • Fiscal year:12 consecutive months ending on the last day of any month except December.

Set up recordkeeping processes

Being organized helps businesses owners be prepared for other tasks. Good recordkeeping helps a business monitor progress. It also helps prepare financial statements and tax returns.


 

Posted in SMALL BUSINESSES

October 18th, 2017 by Oscar

Mientras que los contribuyentes no comenzarán a presentar sus declaraciones de impuestos hasta dentro de varios meses, existen ciertas cosas que pueden hacer para facilitar el trámite el próximo año. Aquí hay dos cosas que podrían afectar las declaraciones de 2017 que se presentarán en 2018.

Informe los cambios de nombre. Los contribuyentes recientemente casados o divorciados que cambien su nombre, deben notificar a la Administración de Seguro Social (SSA, por sus siglas en inglés). También deben notificar a la SSA si cambió el nombre de un dependiente. Los contribuyentes deben hacer esto para que cuando el contribuyente presente la declaración el próximo año, el nuevo nombre concuerde con el que aparecerá en la declaración de impuestos. Una discrepancia entre el nombre incluido en su declaración de impuestos y en los archivos de la SSA puede causar problemas en el trámite de su declaración de impuestos e incluso retrasar su reembolso de impuestos.

Renueve los números de identificación personal del contribuyente. Los contribuyentes que utilicen un Número de identificación personal del contribuyente (ITIN) deben verificar si su número venció en 2016 o vencerá este año. Si es así y necesitan presentar una declaración en 2018, deben solicitar ahora la renovación de su ITIN, para el próximo año evitar que ciertos créditos tributarios sean rechazados y hayan retrasos en el trámite. Los contribuyentes que no hayan utilizado su ITIN para presentar una declaración federal al menos una vez en los últimos tres años, verán que su número vence el 31 de diciembre de 2017. Además, los ITINs con dígitos medios de 70, 71, 72 u 80, también vencerán al final del año. Sólo los contribuyentes con los ITINs que vencen tienen que tomar alguna acción. Para renovar un ITIN, un contribuyente debe completar un Formulario W-7(SP) y presentar la documentación requerida. No se requiere una declaración de impuestos al presentar una solicitud de renovación.

Posted in INDIVIDUALS, SMALL BUSINESSES

October 18th, 2017 by Oscar

When a hurricane or other disaster strikes, the IRS wants taxpayers to know they can count on the agency for help.

Here are six resources taxpayers can access on IRS.gov:

Tax information about federally declared disasters. Special tax law provisions apply when the federal government declares a major disaster area. This relief can help victims recover financially after a disaster. For instance, the IRS may grant more time to file tax returns and pay tax.

Information about faster refunds. Taxpayers may be able to get a faster refund from losses suffered in a federally-declared disaster area. Taxpayers can claim losses related to the disaster on the tax return for the previous year. They claim the loss by filing an amended return in most cases.

Disaster declarations. Taxpayers can visit the Tax Relief in Disaster Situations page on IRS.gov. This page has a list of the latest disaster declarations and any related disaster tax relief.

Disaster relief resources. The IRS has many resources to help those who provide disaster relief. The Disaster Relief Resources for Charities and Contributors.

Around the Nation. The Around the Nation page provides local tax news, including disaster relief information that applies to specific areas.

Making a plan. Taxpayers can check out the Preparing for a Disaster page on IRS.gov for information about prepping for a possible disaster in the future.

Posted in INDIVIDUALS, NONPROFIT ORGANIZATIONS, SMALL BUSINESSES

October 17th, 2017 by Oscar

Throughout the year, many taxpayers contribute money or gifts to qualified organizations eligible to receive tax-deductible charitable contributions. Taxpayers who plan to claim a charitable deduction on their tax return must do two things:

  1. Have a bank record or written communication from a charity for any monetary contributions.
  2. Get a written acknowledgment from the charity for any single donation of $250 or more.

Here are six things for taxpayers to remember about these donations and written acknowledgements:

  1. Taxpayers who make single donations of $250 or more to a charity must have one of the following: a) A separate acknowledgment from the organization for each donation of $250 or more.; b) One acknowledgment from the organization listing the amount and date of each contribution of $250 or more.
  2. The $250 threshold doesn’t mean a taxpayer adds up separate contributions of less than $250 throughout the year; for example, if someone gave a $25 offering to their church each week, they don’t need an acknowledgement from the church, even though their contributions for the year are more than $250.
  3. Contributions made by payroll deduction are treated as separate contributions for each pay period.
  4. If a taxpayer makes a payment that is partly for goods and services, their deductible contribution is the amount of the payment that is more than the value of those goods and services.
  5. A taxpayer must get the acknowledgement on or before the earlier of these two dates: a) The date they file their return for the year in which they make the contribution; b) The due date, including extensions, for filing the return.
  6. If the acknowledgment doesn’t show the date of the contribution, the taxpayers must also have a bank record or receipt that does show the date.

Posted in INDIVIDUALS, SMALL BUSINESSES

October 13th, 2017 by Oscar

El IRS advirtió hoy a todos los usuarios de e-Services que tengan cuidado con una nueva estafa de phishing que intenta engañar a los profesionales de impuestos para que “firmen” un nuevo acuerdo de usuario de e-Services. La estafa de phishing busca robar contraseñas y datos.

El correo electrónico fraudulento dice ser de “e-Services Registration” (Inscripción de e-Services) y usa “Important Update about Your e-Services Account” (Actualización importante acerca de su cuenta de e-Services) en la línea del asunto. Afirma, en parte, “We are rolling out a new user agreement and all registered users must accept its revised terms to have access to e-Services and its products.” (Estamos implementando un nuevo acuerdo de usuario y todos los usuarios inscritos deben aceptar los términos revisados para tener acceso a los servicios electrónicos y sus productos). Le pide a la persona que revise y acepte el acuerdo, pero los lleva a un sitio falso.

Todos los profesionales de impuestos deben estar conscientes de que a medida que los servicios electrónicos comienzan a moverse este mes a la autenticación de acceso seguro y sus protecciones de dos factores, es probable que los criminales cibernéticos intenten robar contraseñas y datos antes de la transición. Tal como el IRS ha advertido en los últimos años, estos esquemas sofisticados son de naturaleza adaptativa y todos deben ser cautelosos antes de hacer clic en un enlace o ingresar información personal confidencial.

Para aquellos que hayan hecho clic en este enlace, realice un escaneo profundo (deep scan) con el software de seguridad, comuníquese con el personal de IT/seguridad informática y con el Servicio de ayuda electrónica del IRS.

Posted in INDIVIDUALS, SMALL BUSINESSES

October 12th, 2017 by Oscar

While taxpayers will not start filing their tax returns for a few months, there are a few things they can do to make the process easier next year. Here are two things that could affect the 2017 returns they will file in 2018.

Report name changes. Recently married or divorced taxpayers who change their name should notify the Social Security Administration. They should also notify the SSA if a dependent’s name changed.  Taxpayers need to do this so that when the taxpayer files next year, the new name on the tax return matches A mismatch between the name shown on their tax return and the SSA records can cause problems in the processing of their tax return and may even delay their tax refund.

Renew Individual Taxpayer Identification Numbers. Taxpayers who use an Individual Taxpayer Identification Number should check to see if their number expired in 2016 or will expire this year. If so, and they need to file a return in 2018, they should apply now to renew their ITIN to avoid certain disallowed tax credits and processing delays next year. Taxpayers who have not used their ITIN to file a federal return at least once in the last three years will see their number expire Dec. 31, 2017. Additionally, ITINs with middle digits 70, 71, 72 or 80 will also expire at the end of the year. Only taxpayers with expiring ITINs need to take any action. To renew an ITIN, a taxpayer must complete a Form W-7 and submit required documentation. No tax return is required when submitting an application to renew.

Posted in INDIVIDUALS, SMALL BUSINESSES