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May 25, 2018

Advance Tax Return Preparation Can Simplify your Tax Burden

Filed under: Tax — Tags: , , , , — admin @ 12:47 pm


At the end of a financial year, you start your tax return preparation. This is a mandatory procedure in United States to file the tax returns. Every individual and corporate body must follow this rule and have to do it in the specific time frame. If you are serious about your business and want to make your company to progress, you must file tax on time so as to avoid redundant problems like tax raids and other problems. If not returned on time then you and your business can come in problem, it may result that your business can shut down and you would never like this to happen. So it is advisable to take steps in the favor of your business and do such things that can keep you away from tax problems. Tax return preparation must be undertaken before the tax return date resumes so that you can prepare dully in the manner to help you and your business.

Traditional means of tax return was quite tedious as you were to stand in a long queue and wait for hours to file your tax. But today this method is no longer used and online tax return has replaced this. Advancement in technology has influenced every system and so this result can be effectively seen in online tax return. Internet has become our need because it caters to fulfill most of the things that we desire. Among many advantages of internet, one of them is to pay tax online which saves much of your time to do manual tax return preparation. Tax return is an issue that necessitates absolute concentration in the matter of tallying of the financial documents of your firm. You need to tally profit and loss account, balance sheet, daily bills receivables trial balance, financial statements, and payables and many things that constitutes to be a part of financial documents.

During peak tax season, financial departments of all organization have an excess work load and they have to work hard f to resolve all the financial records. Every tax accountant is busy in arranging data to bring correct figure so that tax can be paid without any problem and on time as well. The accountants are very busy and concentrate on tax return preparation so that the process is done without any error. Calculating financial data accurately and other things are very important to make tax return preparation smooth. Tax return preparation has got simplified by the online procedure because now accountant does not have to do many things manually and so there is less chances of in –accuracy. Now, you do not have to run every time to your accountant for even a small piece of work and others.

Before you hand-over your entire task of tax return to an accountant, you must confirm that the accountant is a certified professional from American Institute of Certified Public Accountant. Apart from hiring an accountant, you have another option to get the services of accounting firms that provides online tax return facility through which you can instantly know the amount of tax that you need to pay. This method can save your time and you can pay the tax in the allotted time.

Michelle Barkley is a CPA who advises people on tax preparation and tax calculation.She

specializes in Bookkeeping outsourcing,Accounting outsourcing and Tax return reparation .To know more about Accounting outsourcing services and to use the services visit www.ifrworld.com

May 20, 2018

The Importance Of Your Tax Return

Filed under: Tax — Tags: , — admin @ 12:46 am


A tax return is a form that must be filled in for the Inland Revenue ( now HM revenue and Customs) with details of things like your income. From the tax return, the amount of tax you are liable for is calculated.
If a tax return is issued you have a legal liability to fill the thing in. If not you will have a 100 penalty issued. Those individuals who complete returns using software are sent a notice advising them that a tax return is due. If a taxpayer is not issued with a tax return but has tax due they should notify HMRC who may then issue a return.Preparing a tax return is one of those things we tend to build up in our minds as a big deal, when it doesn’t have to be. It’s like painting the living room. Prepare and lodge your own tax return electronically.
A tax return is sometimes required for other reasons, for example to check if the correct tax has been paid overall. So if you are sent a tax return, you must fill it in and send it back even if you believe that you have no extra tax to pay. A tax return is a document filed with HMRC that declares a taxpayers liability for being taxed, based on their yearly income. Three outcomes are possible from filing a tax return: either the taxpayer has either been charged too much or too little for their income, or they have been charged the correct amount. A tax return is a form on which you are asked to report your income and capital gains, and give details of reliefs and allowances claimed, for a particular tax year. The tax year runs from 6 April to 5 April, and the tax return covering the year ended 5 April 2008 is sometimes called the 2008 tax return’, or the return for 2007/08.It applies to taxpayers who are identified as requiring a tax return and who are issued with a notice to file or a paper self assessment tax Return incorporating a notice to file. It also applies to people who make a claim outside a tax return. If you are newly self-employed it is not enough simply to file a tax return by October 31 for the tax year in which you became self-employed. You must tell HMRC that you have started to work for yourself within three months of doing so – you face a fine of 100 if you don’t. Further, at death, the executor of your estate must also file an Estate Tax return.
HMRC have 12 months from the date of filing the return in which to open an enquiry, provided that the tax return is submitted by the applicable deadline for the method used. If a return is submitted after the deadline for that method, HMRC have up to and until the quarter day following the first anniversary of the date the return was filed, in which to open an enquiry. HMRC may sometimes refer to such cases as investigations, in order to distinguish them from enquiries pursued under the S9A powers. In such cases HMRC have to rely on the information powers in TMA70/S20 to support the investigation or seek a Regulation 10 notice (General Commissioners (Jurisdiction and Procedure) Regulations 1994 SI1994/1812) from the Commissioners in an appeal hearing. HMRC’s local office structure has been dismantled but the new structures do not appear to provide adequate support mechanisms. There is little doubt that this issue is the biggest single cause for concern among tax technicians and accountants, who represent the largest number of qualified tax advisers in the UK, many of whom deal with HMRC on a very regular basis.
Remember that if you do file your tax return on time and do not breach rules you are far less likely to attract the attention of the HMRC investigators.

Geoff Hibbert provides tailored tax management solutions and credit repair services through his websites http://www.taxdebtsolved.co.uk
and http://www.creditrepairuk.co.uk

May 8, 2018

Treatment of sickness and injury benefits on your tax return

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The following guidelines will help you in deciding the tax treatment on sickness and injury benefits:

You are entitled to a tax credit if you are permanently and totally disabled at the time of your retirement.

If you receive money for personal injury or sickness because of an accident on a health plan paid by your employer, you need to report such income on your tax return.  However, if you and your employer pay for the plan jointly, only the amount received by you on the basis of contribution from your employer will be treated as your income. If you receive any money by way of a reimbursement for medical expenses incurred by you after the plan was established, that money is not includible in your income.

If you paid the entire cost of such an insurance plan, the amounts received by you under such plan are not to be included on your tax return.

Cafeteria plans –if you are covered by a cafeteria plan, and the amount of insurance premium was not included in your income, IRS assumes that you have not paid for the premiums and so you have to include the benefits you receive out of such plan in your income.  However if the amount of premiums was already included in your income, you are assumed to have paid the premiums and consequently the benefits are not taxable.

If you receive money from a retirement or profit sharing plan, which is not providing for a disability retirement, it cannot be treated as disability pension.  Such payment must be reported as annuity or pension.  It has to be included in your income in the year of its receipt.

If you retire on disability, any payment which you receive towards accrued annual leave is regarded as a salary payment and not a disability payment.

When you retire on disability, the disability pension you receive under a plan which is paid by your employer is treated as your salary Up to the time you reach minimum retirement age.  Once you reach minimum retirement age, the payments received are taxable as a pension on annuity.

Various military and government disability pensions are not taxable.  The payments relating to service connected disability are excludible from your income.  If you receive a disability pension on the basis of years of service, that has to be included in your income.  However if it is a service connected disability, it is not to be included in income.  Similarly, disability benefits received from the VA are not to be included in your income.

A claim for the refund or credit must be filed within three years from the date return was filed.  However, if you are in receipt of a retroactive service connected disability rating determination, the limitation is extended by one more year from the date of determination.  So if you retired in 2004 and continue to receive a pension which was based on your years of service and later on July 10, 2008 you receive determination retroactive to 2004, you can claim a refund for the taxes paid on your pension for the years 2005, 2006 and 2007.  For this extended period of one year applies to all the claims for refund filed after June 17, 2008.

If you are in receipt of any payment for injuries resulting directly from a terrorist or a military action, such payments are not includible in your income.

Amounts received from long term care insurance contracts are not includible on your tax return as your income.  You must file form 8853 with your return to claim such exclusion.

The money received as workers’ compensation under the workers’ compensation act is fully excludible on your tax return.  However if you return to work later, the payments you receive by way of salary will be taxable.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

May 4, 2018

Tips and tricks to File an Amended Tax Return

Filed under: Tax — Tags: , , , , , — admin @ 12:47 pm


What happens if you realize that you made a mistake on your income tax return after it is already filed?  First, don’t panic, it happens so often that there is a procedure in place.You are going to have to do this filing all over again, but don’t get lazy and just let it go, figuring no one will notice.  Depending on the mistake, you could get red-flagged for an audit or find yourself under suspicion of filing a falsified claim.  Just get Internal Revenue Service form 1040X and start all over again.The Internal Revenue Service will want to know what you filed on the return in error and what the actual numbers should be.  They will also want to know how and why you made a mistake.  There is an accommodation for removing or adding personal exemptions.Even if filing an amended return increases your tax liability or causes you to owe rather than being entitled to a refund, you need to change it, no matter.  If you don’t, you knowingly filed a false claim and that act is punishable by imprisonment.  You can’t cry later, when the Internal Revenue Service catches up to you that you didn’t know any better and even if you could, you will still have to pay them back.  Penalties, interest, and fines will have accrued since the day they issued your payment and you will be in deep.  The Internal Revenue Service is the best debt collection agency in the world.  If you filed a return with wrong information that resulted in a refund to you, they are going to treat you like a thief.  They will act as if you robbed them at gunpoint.  The Internal Revenue Service Agents assigned to your case will no doubt be from the criminal division and they will have a United States Attorney itching to prosecute you.  No matter how tempting it might be to “take the money and run”, there is no place for you to go.  Just file the 1040X, because it’s easier in the long run.If you made the same mistake in multiple years, you need to file an amended return for each of those years, individually.  If you attempt to make changes for multiple years on one amended return, you will send up a glaring red light to the Internal Revenue Service.If you hired a tax professional to file the return that needs to be amended, they should help you do that, but don’t just hand it off to them and forget about it.  You, not the person who filed your return, are ultimately responsible for your own income tax return and every bit of information on it.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

May 1, 2018

Find Hidden Divorce Money From Your Tax Return

Filed under: Tax — Tags: , , , , , — admin @ 12:46 pm


It’s almost mind boggling how many spouses rely on their significant other to do the taxes. Most of them don’t even look at them. They just want to know the bottom line and where to sign. Check your tax return. Do the numbers correspond to what you’ve earned, spent and saved? Do the 1099s seem to be in order? Interest and dividends are reported there, along with the names of the financial institutions. Make sure you know where your assets are invested and where the accounts are kept.

I have seen a spouse pay significant income taxes, often when the payment greatly exceeds the actual income tax debt. After the divorce is over, then an amended return is filed along with a request for a refund of the over payment. In this way cash that would normally have been divided between the spouses was used for income tax payments, and the refund is not shared.

Another trick, especially for a spouse who manages property or a business, is to take steps to devalue the property over time, so that when it comes to allocate the value of the asset, the managing spouse gets the benefit of the lower value. This may include allowing rental property to remain vacant or in disrepair. Another example is to contact a business’ customers to defer payments of accounts receivable until after the divorce is finalized. Then when the accounts are finally paid, the managing spouse gets the benefit of the cash, and also the increased value of the business now with current accounts.

Income tax returns are the first place to look for possible clues as to the existence of undisclosed assets. They provide the road map to the discovery of income earning assets and asset sales. Typically, the tax return should also describe the source of all income, whether it be rents received from rental property, interest on a bank account, dividends on stocks, gain or loss on the sale of stock, and the like. In reviewing the tax returns, the attached schedules are far more important than the summary entries on the first two pages. In any event, each page of the tax return should be carefully reviewed. You can get a FREE report at Divorce Ammo.

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April 29, 2018

How Will You File Your Income Tax Return Easily?

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Though Income Tax preparation is not easy but it is not something that you cannot do yourself as well. If your tax situation is not complex, you can do your taxes on your using tax software and programs available.

For preparing income taxes you need to either choose paper filing option or you can prefer e-filing your income tax online. If you get a professional tax preparer for doing your taxes, you may have to spend your money. You’ll hardy find an efficient tax preparer during the hassle of tax season. In such cases, you can do it on your own using online income tax programs easily.

You can visit the IRS website irs.gov to learn about issues related to taxes. The IRS offers Free File program using which you can prepare your taxes for free and e-file your taxes easily. If your adjusted gross income – that is AGI – is $56,000 or less in 2008, then you are eligible for this program. If your income goes above to meet the requirement of the Free File tax program, then you can consider online tax preparation services that may charge you very nominal fee.

Online tax preparation software programs are very easy to use. You just need to answer the questions asked by the programs related to your personal and financial situation and fill up the forms which are exactly like the paper forms. The tax preparation programs also will supply you with tax deductions suitable to you. If you choose deductions wisely then you’ll have less chances of being audited by the IRS.

If you file your Income tax return online, you will get confirmation or rejection note from the IRS. This will ensure you whether your return file is accepted or not. If you e-file your return using direct deposit option, then your refund will directly deposited into your bank account and you will not have to fear of getting your refund check lost.

Jasika Lotaki is an author of tax return solution. So if you want to prepare Income Tax Filing easily and quickly, Visit PrepareIncomeTax.Com to learn more about Online Income Tax filing and issues related to tax.

April 23, 2018

Self Assessment – Do I need to complete a Tax Return?

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What is Self Assessment?Self assessment enables an individual to prepare details of their incomes and relief’s for HMRC. HMRC will then calculate the tax liability based on these figures. These figures will not be checked until later in the tax year.  However tax law is vast and confusing so it is always best to instruct an accountant to prepare this on your behalf to ensure you don’t end up paying too much tax or too little. Also HMRC can impose penalties if you provide incorrect or fraudulent information. The first Self Assessment tax return was issued in April 1997. The Self Assessment tax return is made up of a basic core return together with separate supplementary pages – which ones you get will depend on your circumstances and the type of income you receive.

Do I need to complete a Self Assessment Tax Return?A wide range of individuals in varying circumstances need to complete a Self Assessment Tax Return. Normally HMRC will inform you if you need to complete one. However they can’t inform you if you have not completed the appropriate forms necessary to make them aware of your circumstances. Generally speaking an individual or partnership will need to complete a Self Assessment Tax return if income is received that does not have tax deducted at source or if they are a director of a Company. However even if all your income is taxed at source, you may still be required to complete a Tax Return. You should contact an accountant if you are unsure.

More information on Self Assessment can be found in a free Online Accountant Knowledge Bank. Alternatively, for up to date information and advice, based on your specific circumstances, contact an online accountancy firm.

April 18, 2018

Online Income Tax Return – File Taxes Online

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Income taxes need to be filed within the specific time period, so that unnecessary penalties and problems can be avoided. Doing taxes is one of those issues that need to be done properly. You have to deal with various forms, documents, receipts for the whole year, and other required information. In order to avoid complexities, you can consider doing your taxes online using software programs available.

During the tax season, most of the accounting firms have heavy load of work. Also, you will see that the majority of the certified public accountants are busy in paper work. With online tax return preparation and e-filing option, things have come a bit easier and faster. You do not have to rush to your accountant now and then for seeking his or her guidance. You can do it easily and conveniently using software online. Using internet facilities, you can contact a certified public accountant and send your tax details online.

There are numerous websites offering online income tax preparation and e-filing options. You will be able to save your valuable time as well as your money if you choose to do your task online. Most online tax filing companies provide the facility of calculating or estimating the exact amount of taxes that need to be filed.

Now preparing and filing return online is not only easy but also free. You can visit the IRS website to avail the benefit of using Free File software when it comes to filing online federal tax return. If your AGI income is something less than $57,000, you can use this free file option. If you do not qualify for using this software, then you can consider Free File Fillable Forms to prepare and file your return forms electronically. Most tax return preparation and e-filing firms provide services at a reasonable rate. Calculating tax amount using online calculators and filing your return online is easy now.

Onlinetaxspecialist.com provides Online Income Tax preparation and e-filing services. Prepare your Online Tax Return with us and e-file electronically to get faster refunds.

April 15, 2018

Free Federal Income Tax Return Preparation And E-Filing Option

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Everyone wish to file his or her own federal income tax easily and hassle-free manner. And therefore, either they get a professional tax preparer to do it for them or they prefer to do it with the help of online software or e-filing services available. Now you can prepare and file your income tax return for free. Find out the best company that offers you free e-filing option and submit your return electronically in timely manner.If you wish to avail the benefits of Free Federal Income Tax preparation and filing, you should visit the IRS website. Through a partnership with some private software companies, the IRS provides Free Filing program using which you can prepare and file your federal return for free. If you qualify for it, then you can use it and to be eligible for using it, your adjusted gross income should be something less than $57,000. Also there are other IRS approved companies that you can go for. It is very easy to choose a company that you can seek help from for doing your task. Just visit the IRS website and go to the Free File option where you will see “Help Me Find A Free File Company” which will help you find out choosing a company for you.Once you choose your free federal tax return preparation company, you can start planning out your taxes. Though the online software will do all sorts of math and calculations for you, you need to have all the information and required documents close by so that it will become easy for you to provide information asked by the software at the time of preparing your return file online. You need to provide the right information so that your return file becomes accurate and authentic. You should be cautious about the fast that you may get penalized if your return file found to be fraudulent.Using software online, you will be able to do free federal tax filing easily. If you follow the step by step instructions and provide the software proper answers and information, you will be able to complete your task within an hour or even less span of time. At last, e-file your return availing the advantage of direct deposit option to get your refunds online. Using direct deposit feature, you will be able to get your refund money as few as 10 to 14 days.

Free Federal Tax preparation offers Free Federal Return preparation and e-filing services for your federal and state income taxes. File your Free Federal Tax Online free at free federal tax preparation.

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