Tax Tips Archives | Page 8 of 9

In the News

March 16, 2012/in Tax Tips/by revel

Make sure you have internal controls established so an employee can’t run-off with your money. (Photo Credit: office.microsoft.com)

Did you see this story from the Orlando Sentinel: Lake Mary Embezzler stole $85,000 while repaying first victim $260,000

A woman embezzled money from a business and was then hired by another business to handle payroll and accounting, which gave her the means to embezzle again!

Remember, internal controls are crucial! Make sure you have a system of checks and balances in place to prevent embezzlement. If you need help implementing a system or are concerned there may be fraud occurring in your business contact Kit Powell, our Certified Fraud Examiner.

Kit Powell, CFE
231.924.8035
kitp@hscompanies.com

IRS Expands Fresh Start Initiative To Help Taxpayers Struggling to Pay Their Taxes

March 14, 2012/in Tax Tips/by revel

The IRS announced that they have made expansions to their penalty relief and payment program to help those struggling to pay their taxes. (Photo Credit: office.microsoft.com)

The IRS announced on March 7, 2012, that they had made expansions to their penalty relief and payment program known as The Fresh Start Initiative. Below is a summary of key expansions:

Penalty Relief
This relief allows for a six-month grace period to allow taxpayers to pay their taxes without being charged the failure-to-pay penalty. Individuals granted this extension will have until 10/15/12 to pay their 2011 tax, interest, and other penalties in full without being charged the penalty.

Available to two categories of taxpayers: Those who have been unemployed for 30 consecutive days in 2011 or 2012 (up to the 4/17 tax filing deadline) and self-employed people who have experienced a 25 percent or greater reduction in business income in 2011, due to the economy.
If you’re interested in filing for this extension you must complete Form 1127A.

Installment Agreements
Taxpayers who owe $50,000 or less in back taxes have the opportunity to pay their debt over the course of several months or years.

The IRS raised the threshold from $25,000 to $50,000 for using installment agreements without having to present financial statements.
You must file Form 433-A or Form 433-F.

Offers in Compromise
This part of the relief program aims to help those struggling the most by reducing a taxpayer’s liabilities for less than what is owed.

For the complete details visit the IRS Website.

If you have questions, or would like to discuss whether this relief program is right for you, contact your H&S tax professional today at 1.800.924.6891.

IRS Reverses Credit Card Rule Tax Reg

March 12, 2012/in Tax Tips/by revel

Merchants do not include things like cash refunds, sales tax, and tips in their gross receipts, but payment processors could include those figures on 1099-K forms. (Photo Credit: office.microsoft.com)

The IRS announced on March 1, 2012 that it has decided to reverse its decision to require business owners to reconcile their gross receipts with their 1099-Ks reported by payment processors.

According to the IRS, the original goal of the Tax Reg was to increase voluntary tax compliance, as well as, improve overall compliance, but many small business owners had criticized the rule. Merchants do not include things like cash refunds, sales tax, and tips in their gross receipts, but payment processors could include those figures on 1099-K forms. Small business owners were concerned about the extra administrative time and expense required to reconcile the two numbers.

Payment processors will continue to file Form 1099-K, so don’t let your guard down. The discrepancy between gross receipts and Form 1099-K could still trigger an IRS audit.

Spring Forward. Fall Back. Pay an Extra Hour?

March 7, 2012/in Tax Tips/by revel

On March 11^th we will need to “spring” our clocks forward an hour, but how does that affect the pay of hourly workers on duty at 2am? Employers are not required to pay employees an extra hour if they are working when the time changes. If employers do choose to pay their employees for a full eight-hour shift, they do not need to include that hour when determining overtime. Additionally, they may not credit the extra hour as overtime since it is not compensation for time worked.

Final Day to File Taxes is 4/17/12

March 5, 2012/in Tax Tips/by revel

The final day to file your 2011 tax return is Tuesday, April 17, 2012. Taxes are typically due April 15^th each year; however, because April 15^th is a Sunday and April 16^th is Emancipation Day, the final day to file this year is April 17^th.

If you made less than $57,000 last year….

February 29, 2012/in Tax Tips/by revel

If you made less than $57,000 last year the IRS has a freebie for you! Click here to listen to more information.

Recently Married or Divorced?

February 27, 2012/in Tax Tips/by revel

If you were recently married or divorced be sure the last name on your tax return matches the one on record with the Social Security Administration (SSA). Taking a spouse’s last name, reverting to a maiden name, or hyphenating a last name with a spouse’s may cause complications with your return if the proper paperwork is not filed with the SSA.

To complete a name change, file Form SS-5 at a local SSA office or by mail.

If you have questions or need help with this matter contact your H&S tax professional.

Tips to Help Lower Your Likelihood of an IRS Audit

February 24, 2012/in Tax Tips/by revel

If you run a successful business you don’t want to run afoul of the IRS. Learn tips to help lower the likelihood of an IRS audit by clicking here.

IRS Releases the "Dirty Dozen"

February 23, 2012/in Tax Tips/by revel

Tweet

Each year, the IRS releases the top 12 scams for taxpayers to be aware of — aka the “Dirty Dozen”. Below are the top scams for 2012:

Identity Theft
Phishing
Return Preparer Fraud
Hiding Income Offshore
Free Money From the IRS and Tax Scams Involving Social Security
False/Inflated Income and Expenses
False Form 1099 Refund Claims
Frivolous Arguments
Falsely Claiming Zero Wages
Abuse of Charitable Organization and Deductions
Disguised Corporate Ownership
Misuse of Trust

For the full report click here or watch the IRS video here
So, what can you do to protect yourself?

Trust your gut, if something seems too good to be true it probably is. Don’t let someone encourage you to lie or file false information.
Don’t give your personal information out to just anyone. The IRS and other reputable businesses and government agencies will never solicit your personal information through e-mail.
Do your homework and choose a reputable business to prepare your taxes. H&S Companies has been providing professional tax and accounting services for 29 years. Our professionals are knowledgeable, trustworthy, and honest. We will work with you to ensure you receive the return you deserve.

If you have any questions or require any additional information contact your H&S tax professional today.

IRS Releases the "Dirty Dozen"

February 23, 2012/in Tax Tips/by revel

Tweet

Each year, the IRS releases the top 12 scams for taxpayers to be aware of — aka the “Dirty Dozen”. Below are the top scams for 2012:

Identity Theft
Phishing
Return Preparer Fraud
Hiding Income Offshore
Free Money From the IRS and Tax Scams Involving Social Security
False/Inflated Income and Expenses
False Form 1099 Refund Claims
Frivolous Arguments
Falsely Claiming Zero Wages
Abuse of Charitable Organization and Deductions
Disguised Corporate Ownership
Misuse of Trust

For the full report click here or watch the IRS video here
So, what can you do to protect yourself?

Trust your gut, if something seems too good to be true it probably is. Don’t let someone encourage you to lie or file false information.
Don’t give your personal information out to just anyone. The IRS and other reputable businesses and government agencies will never solicit your personal information through e-mail.
Do your homework and choose a reputable business to prepare your taxes. H&S Companies has been providing professional tax and accounting services for 29 years. Our professionals are knowledgeable, trustworthy, and honest. We will work with you to ensure you receive the return you deserve.

If you have any questions or require any additional information contact your H&S tax professional today.