|Posted on January 9, 2019 at 5:47 PM||comments (2)|
W-2 AND FORM 1099 FILING DEADLINE IS JANUARY 31ST 2019; Employers & Business Owners Take Note.
Happy New Year. This is to remind All Business Owners/ Employers that the Deadline for filing W-2 and Form 1099 Tax Report with the IRS is January 31st, 2019. This means that you need to ensure that your Employees and 1099 Contractors receive and review their W-2 and 1099s before January 31st, 2019.
It is important to remember that this Act is from The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015 and became effective since 2016. We had published a Detailed Article on this -
By this New Act, Employers and Small Businesses have January 31st Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors. As a Result of this, the filing deadline for filing W-2s and 1099 forms (including Form 1099-MISC) is Every January 31st.
Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means:
• Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
• Verifying Accuracy of Employee Information.
• Reporting/Submitting Any Year-End Adjustments as soon as possible.
• Reviewing Year-End Totals for any Discrepancies. There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable.
The Penalty amounts are reflected below:
• $50/Return – If you file after 30 Days of the Due Date.
• $100/Return – If you file more than 30 days after the Due Date.
• $260/Return – If you do not file corrections or Do not file Required Forms.
At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings.
Feel Free to Call and Let us know how we can help you.
|Posted on August 17, 2018 at 5:36 PM||comments (5)|
More than 2 Million Individual Tax Payer Identification Numbers( ITINs) are set to expire at the end of 2018.
* Tax Payers whose ITIN is expiring and needs to file a Tax Return in 2019 must submit a Renewal Application.
* ITINs that are affected are the ones with the middle digits 73,74,75, 76, 77, 81 or 82. ( For Example: 9NN-73-NNNN) needs to be renewed even if the Tax Payer has used it in the last 3 Years.
*ITINS with middle digits of 70,71,72,78,79 or 80 have previously expired. Tax Payers with these ITINs can still renew at anytime.
* Acting Now to renew ITIN Numbers will help Taxpayers avoid delays, that could affect their Tax Filing and Refunds in 2019.
* As a Reminder, the IRS no longer accepts passports that do not have a Date of Entry into the US as a Stand Alone Identification Document for dependents from a country other than Canada, Mexico or dependents of US Military Personnel Overseas.
* The Dependents passports must have a Date of Entry Stamp, otherwise Additional Documents to prove US Residency will be required.
Read on and Be Enlightened. Feel Free to Share.
|Posted on April 16, 2018 at 9:27 PM||comments (2)|
The deadline for filing your taxes is fast approaching — this year, The deadline is April 17, 2018.
We all know, that Life can be busy!!! Maybe your taxes are particularly complicated this year, or maybe you just don’t have the time to sit down and sift through the paperwork.
So, what happens if you don’t file your tax return on time?
If you’re getting a refund on your taxes this year, you don’t need to panic — you have until April 17, 2021 to claim your refund (or until October 17, 2021 if you filed an extension by the April 17 deadline). It’s best to file as soon as possible, however, because if you don’t file within that 3-year period, you’ll lose the refund.
If you owe taxes, things get complicated.
First, you’ll be charged a failure-to-file penalty. That penalty is 5 percent of your unpaid tax bill for every month after the April deadline that you fail to pay. The amount can grow to a maximum of 25 percent of your total unpaid bill.
In addition, you will be charged interest on whatever amount you did not pay. The interest rate is the federal short-term rate plus 3 percent with interest compounded daily. That can add up very quickly.
How to File for an Extension on your Taxes.
If you think you might be unable to file your tax return by the April 17 deadline, the best way to avoid fees and penalties is to file for an automatic six-month extension with the IRS using Form 4868. It’s free and pretty easy.
But if you owe taxes, you’ll still need to pay them by the April 17 deadline or penalties, fees and interest will start to accrue.
Form 4868 does not grant the taxpayer an extension of time to pay their tax.
If you owe the IRS money and are having trouble coming up with the money, you have a few options. You can file for an extension of time to pay your tax bill using Form 1127: Application for Extension of Time for Payment of Tax Due to Undue Hardship, but be aware that the laws are very strict about granting such extensions.
* The IRS must receive Form 1127 on or before the date that the tax is due.
* The taxpayer must include a complete statement of all their assets and liabilities at the end of the previous month, as well as an itemized list of money they received and spent the previous three months prior to submitting the extension request.
* The taxpayer must show that the payment of tax would result in “undue hardship.” That means more than inconvenience.
*The taxpayer must show that paying by the due date would result in a serious loss of money and that they don’t have the funds, nor can they raise them through borrowing.
When granted, these extensions usually last 6 months. For more information about extensions to pay tax, visit the IRS website at www.irs.gov.
(You can read more about payment plans and other options for what to do if you can’t pay your tax bill here.)
Ultimately, it is the best and safest idea to file your return by the April 17 deadline or file for an extension. That may be a hassle now, but it could save you a significant amount of financial harm in the future. If you need assistance, please call us as soon as possible.
|Posted on February 19, 2018 at 11:55 PM||comments (3)|
Do you have all your required Tax Filing Documents?
* Form W2
* Form 1099 - MISC (If you are a Contractor or Independent Employee)
* Form 1099 - G (To show Payment received from Government Agencies, Unemployment Benefits, Alimony, Child Support).
* Form 1095 - To show that you are enrolled in a Qualified Health Plan, which will allow you to get your Premium Tax Credit).
* Form 1098 - To show Payment Received from Interest (Interest Income).
* Profit & Loss Financial Statements (If you are a Business Entity or Corporation)
* Property Taxes paid on Principal Properties.
*Charitable Contribution Statements.( To show Tithes, Offerings and Donations given to Religious Organization)
* All Receipts of Purchases Made during the 2017 Year.
Additional Forms, that you may receive:
a) 1099- INT - To Show Payments received on Interest.
b) 1099- DIV - To Show Payments received on Dividends.
c) 1099- R - To show Pensions and Payouts from Individual Retirements Accounts.
d) 1099-B - To show Broker Transactions and Barter Exchanges.
e) 1099-S - To show Real Estate Transactions.
Businesses may not like sending out Forms 109, but they are required by law to send them out. There are also penalties for failing to issue these Forms. No one wants trouble from the IRS.
Generally, Businesses must issue these forms to any Payee (Other than a Corporation), that receives $600 or more during the financial Year. This is the basic threshold.
Do you need more clarification on any of these Required Documents? Feel Free to reach out to us and we will educate you more, help you reduce your Tax Liabilities and guarantee your Maximum Tax Refund.
|Posted on December 18, 2017 at 7:15 PM||comments (5)|
As the Year is coming to an end and Tax Season is drawing closer, it is important to remember The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015, which became effective last year. We had published a Detailed Article - https://www.linkedin.com/pulse/new-w-2-deadline-2017-business-owners-employers-take-note/
With this New Act, Employers and Small Businesses have January 31 Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors.
As a Result of this, the filing deadline for 2017 W-2s and 1099 forms (including Form 1099-MISC) is January 31, 2018. The deadline for providing W-2 forms to employees and 1099-MISC forms to Independent Contractors for 2017 has not changed. This deadline is still January 31, 2018.
Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means:
Please remember, that Extension of Time to file these Forms is no longer automatic. You can only request for One 30- Day Extension and this extension is NOT AUTOMATIC. You will have to submit a complete application on Form 8809, Application for Extension of Time to File Information Returns. This Form should be completed as soon as you notice that as Extension is necessary, but no later than JANUARY 31.
This Extension does not affect extensions of Time to furnish Forms W-2 and Forms 1099 to your Employees and Independent Contractors.
There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable.
The Penalty amounts shown below apply for filings due after December 31, 2017:
The IRS urges Tax Payers to still plan to file their Returns as they normally would do, but prepare to exercise some patience, as we have noticed that these changes have brought some delays in getting Tax Refunds. The Refund Delay is an added way to help the IRS combat Tax Fraud by beefing up its effort to authenticate Tax Payer Filings.
At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings. Let us know how we can help you.
The IRS issued technical guidance detailing this information in https://www.irs.gov/pub/irs-pdf/iw2w3.pdf
|Posted on January 15, 2017 at 11:43 PM||comments (1)|
|Posted on December 21, 2016 at 12:47 AM||comments (1)|
|Posted on March 16, 2016 at 10:11 AM||comments (7)|
Every Year, Business Owners across the Nation sit down with their Tax Accountants to come up with as many Legal Tax Deductions as possible. As a Business Owner, knowing which Business Tax Deductions that you qualify for can help:
It is unfortunate that many Business Tax Deductions are misunderstood and underutilized. Some Business Owners make the mistake of claiming the wrong deductions or claiming the wrong amounts. Most Business Owners overlook the most important Deductions that can help reduce their Tax Liability. As you file your Taxes this Year, We have compiled the Top 10 Overlooked Tax Deductions that most Business Owners ignore during Tax Period. Our Aim us to help you remember to claim these deductions as you file your Taxes.
1. Software: A Software Deduction is more than the traditional idea of Software in a Box or Download. If you use any Cloud Based Tools such as Online Accounting Software or Other Productivity Tools, your Subscription Fees are deductible as well as these Software- as- a- service (SaaS) options.
2. Education: Did you spend money to attend a Trade Show, Industry Seminar, Training or Conference relating to your Business or Career in the Past Year? Did you Buy Books, CDs or Online Tutorials related to your Business? These Tools help you get smarter at running your Business and are all Tax Deductible.
3. Licensing & Regulatory Fees: Do you know that the Regulatory and License Fees that you pay each year to keep your Business Operating and in Good Standing are Tax Deductible?
4. Bad Debts: When a Client owes you money and they are not paying their Bills, It is possible to deduct the Uncollectible Bad Debt from your Taxable Income.
5. Student Loan Interest: Student Loan Interest is a Tax Deduction that is commonly missed. If you have Student Loan Debt and you are still paying for it- Either for yourself or for your Children, you have to ensure that the Loan Interest is deducted for Tax Purposes .Note: The Person who gets to deduct the Loan Interest is the person who is legally obligated to pay back the Loan. This means that if the Loan is under your Name, you can take the Tax Deduction; If the Loan is under your Adult Child's Name, then your Child will be the one to claim the deduction on their Tax Return.
6. Medical Costs: These include Health Insurance Premiums, Dental Care, Glasses, Counselling, Therapy and Miles driven to Medical Appointments. Weight- Loss Programs are also deductible if undertaken as treatment for a Disease diagnosed by a Physician.
7. Retirement Plan Expenses: Whether you are a Solo Entrepreneur or Business Owner with many Employees, Any Contribution (up to a certain limit each year) made to a Qualified Tax-advantaged Retirement Plans such as SEP IRA, SIMPLE IRA, 401(K) or Other Retirement Accounts are Deductible. It is important to note that some People with IRAs miss the opportunity to contribute to their Plan and don't realize that it's a deduction that does not need to be funded by December 31st of the Tax Year. Tax Payers have until April 14th of every following Year to fund their IRAs.
8. Depreciation: Depreciation can mean large Tax Savings for most Business Owners and is usually complex enough to intimidate or confuse many Business Owners. Certain Fixed Assets Purchases that you buy for your Business cannot have the entire cost deducted in the same year that you purchase it, instead you need to spread the cost across a few Tax Years and deduct part of it each year.
9. Business Transportation (Vehicle Mileage & Maintenance) : Using your Personal Vehicle or Business Owned Vehicle for Business Related Travel allows you to deduct the Value of Depreciation on the Vehicle's Value by deducting your mileage with the IRS standard mileage rate per mile of Business Travel, or ( If the Number is Greater) by deducting the Total Value of Gas and Maintenance on the Vehicle.
10. Charitable Contributions & Non-Cash Charitable Donations: The IRS likes to encourage and reward People who donate and volunteer for charitable causes. Any Money that you give to a Tax- Exempt Charitable Organization can be deducted from your Taxable Income. You can also deduct certain out - of - pocket expenses incurred while volunteering for a charitable organization. Deducting a Cash Contribution to a Charity is easy, but too often People don't accurately value Non- Cash Contributions such as Clothes. You will have to determine the fair market value.
It is important to take note of these overlooked Tax Deductions and remember to list them during your Tax Filing. It has been reported that Most Business Owners give lots of extra money to the IRS due to lack of record keeping of these overlooked Deductions. This is why it is compulsory to keep accurate record of all your Expenses during the Year and have them categorized properly, so that you can reduce your Tax Liability to the minimum.
We know that the Tax Filing Season is not fun and will like to take the stress off you, so that you can concentrate on building your Business, If you have not been keeping accurate records of your Income and Expenses, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.
To your Business Success,
Rosemary Anyanwu, CFE.
Certified QuickBooks ProAdvisor, Professional Bookkeeper & Accountant.
Rosyan Bookkeeping Services.
|Posted on January 18, 2016 at 11:52 PM||comments (4)|
January 19 2016 will mark the beginning of the 2016 Filing Season. The Internal Revenue Service (IRS) announced that Tax Return filing for the year will begin one day earlier than the previous one.
The IRS will begin accepting individual electronic returns from this day. They will also begin processing paper tax returns at the same time. There is no advantage to people filing tax returns on paper now instead of using the e- file method.
The Tax Day also witnessed slight changes as Washington, DC celebrates Emancipation Day on April 15 instead of the usual April 16th, which is a Saturday. Hence,The filing deadline to submit 2015 tax returns will be Monday, April 18, 2016. Please Note that this Date coincides with Patriot's Day so Massachusetts and Maine will observe their Tax Day on Tuesday, April 19, 2016.
All in all, this Tax Season starts early and ends with a Delay. With this, Tax Payers have more than the regular time period to file their returns. But NOTE that filing the Returns within the IRS time frame can be a smart and effective way to stay safe. The IRS urges all tax payers to make sure that they have all their year-end statements in hand before filing, including Forms W-2 from their employers, Forms 1099 from Banks and Other Payers and form 1095-A from the Marketplace for those claiming the premium tax credit.
One Aspect that Tax Professionals should take care is the tax software that they use for Tax filing and submitting forms to the IRS. It is better not to choose your tax filing software only on the basis of filing dates that they provide.
Below are some tips to consider as you file your Tax Returns:
If you need Assistance with organizing your Documents and Accounting Records, as well as getting them ready for Tax Purposes, Feel free to call us on 202.422.4586.
Let the Tax Season Begin....................................