The Tax Preparation Blog

Archive for the ‘Tax Return Document’ Category

Question: what to do with an ex employee who refused to fill out a w4?

i am an idaho employer who recently hired an employee who refused to fill out and submit a w4. i kept getting the same excuses, i forgot my information, etc. after a week i terminated the employee. now the ex employee wants their pay and i dont know what to do regarding the lack of federal tax documents. i later learned that the employee wouldnt fill it out because she didnt want to report her new job to unemployment. what do i do?

Answer: I hope you did at least get her SSN. If that is the case you can still report her wages and withhold at the higher single rate. (I had an employer do that until I turned in the w-4, I had to wait for my husbands employer to let us know what he put down because my husband couldn’t remember, so I could adjust my withholding.)

If you did not get a copy of her proof of citizenship, identification, and SSN, you may want to contact your business attorney.

If she wants her paycheck… tell her she MUST provide the PROOF you request… PERIOD! Perhaps send it via certified mail. However, I would still check the labor laws.

If she is trying to hide the income, I doubt very much she will take it any further than verbal threats. I would call her bluff and IF she goes to the labor board, just explain to them what she still has to turn in to you. They will forward that information to her in an attempt to resolve the dispute. Then it will be up to her to send you the forms.

Lesson learned: Don’t allow an employee to begin without all their paperwork turned in.

San Francisco Sells $387 Million as Build Americas Trail Tax-Exempt Munis

San Francisco’s Public Utilities Commission, which supplies water to 2.5 million people in the Bay Area, is selling about $387 million in Build America Bonds as issuance of the taxable debt falls to its lowest since April.

Federal Records Center – The Secure Choice

Question: Do you have to pay your taxes?

I heard that you only have to pay state taxes and not federal income taxes. I’ve heard this claim in many books and documentaries. I’ve also heard from somebody I know that they don’t pay their income taxes, and they haven’t been audited and that they will probably only threaten you. But I’ve heard of many people in the media who get in trouble. Is it simply a matter of the government having better lawyers? What’s going on?

Answer: Yes, you have to pay your taxes. It is the law. There are a few kooks that have published some books and made a few “movies”, but they are wrong. Income taxes are constitutional and there is a law. Go to http://evans-legal.com/dan/tpfaq.html to see why those anti-tax kooks are wrong.

Urban Sleight: Tysons Corner wants to reinvent itself as a living city. What does that mean for D.C.?

To the urban soul, Tysons Corner—the barren moonscape of highways and office buildings located roughly halfway between here and Dulles International Airport—is a nightmare. There’s nothing human in the expanses of concrete, no reason to spend any time outside between your car and Tysons’ two malls.

Theft By Deception 3of9 – Deciphering The Federal Income Tax

Question: If a tax return document has been lost in the mail, does this open us to ID theft?

We were supposed to receive a 1099S form from the attorney’s office for the sale of my mother’s estate, following her death. We never received the tax forms that were mailed, and had to obtain copies from the attorney’s office so we could file our tax return.

I am concerned because those forms include a social security number.

Assuming the worst – that someone tampered with our mail and now possess that information, is there anything I can or should do to prevent problems later?

Answer: You can call or go online to one of the three bureaus to file an “Initial Fraud Alert” which will alert lenders that your ID may have been compromised and they need to perform additional checks before they issue a loan. This will be passed to the other 2 credit bureaus and will be on your credit file for 90 days. You can re-file this every 90 days.

Here’s the information:
TransUnion: 1-800-680-7289, www.transunion.com
Experian: 1-888-EXPERIAN (397-3742), www.experian.com
Equifax:1-800-525-6285, www.equifax.com

Here’s a government website that gives you a full list of what you should do if you’ve been a victim of ID fraud.

http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html

Just Be!

When in doubt, hang on to all those tax records

As we begin the new year, it is important to sort through your tax records to determine what needs to be retained to prepare your income tax returns.

Why Add Tax Preparation Service

Question: I am… so lost (tax related)?

I’m 21. I’ve never had a job (’til last year) that paid enough to make me file taxes…

…Then I got married in late 2005, me and the husband did it together last year but I don’t really -remember- any of it. We did it at H&R.

…Now he’s deployed and I’m so lost looking at this stuff, it makes my head explode.

All they tell me is to bring in what the little ‘tax document checklist’ thing tells me. I don’t know what half of this stuff is. What is ‘proof’ of charitable donations? I have no clue where our tax return is from last year, but it says they should already have that (I hope..)

I know SSN’s at least.

How do you calculate ’state and local’ income tax? How do you do ANY of this stuff? I have no idea. =( Please, somebody help.

Note: I already asked my parents. They more or less nicely told me to figure it out on my own.
I love you guys! =)

Answer: Proof of charitable donations – if you contributed to a church or other recognized charitable organization, you should have gotten a receipt – take it in, although it might or might not help you.

Tax return from last year is helpful but not totally necessary. If you can find it, take it in.

For ssn’s they’ll want either the cards or a copy of them. If you have last year’s return they’ll probably take them from there.

State and local tax is on the W-2’s, so you’re covered there.

If you own a house you’ll get a statement from the lender – take that in, and anything else that shows up in your mailbox in the next month or so marked “Tax Document” or something like that, on the envelope.

If you don’t own a house, the charitable donation receipts aren’t likely to make any difference. You have a choice of “itemizing”, which means listing all of your deductions, or taking what’s called a standard deduction which is an amount they just let you take with no list and no receipts – for a married couple filing jointly that’s $10,700 this year.

Good luck. Post again, or feel free to email, if you have more questions.

Last-minute, year-end tax tips that can save you money and time

As the year comes to an end, so do many tax credits. Here is a handy checklist from the IRS to make sure you get what you qualify for.

Driver’s Seat

US Congress enacts Home-Based Businesses Tax Savings Solutions

We are talking about tax savings laws passed by the United States Congress specifically to encourage taxpayers to actively operate a small home-based business – even on a part-time basis – with the intent to make a profit.

First, the fastest-growing business category — for several years in a row — has been Small Home Based Businesses. Maintaining continued expansion in that industry simply makes perfect sense for our national economy.

Second, unemployment puts a tremendous strain on the economy, and the leading job-growth category, again, is Small Home Based Business. Job growth = less unemployment = stronger economy.

Third, if every taxpayer had a part-time home-based business as a “fall back” or “safety net,” a signifigant layoff by a major employer would have less of an impact on the economy.

You are about to get a map to a lot of “information” i.e., small home based business tax savings that are 100% IRS-compliant, easy to qualify for, and simple to document.

Most taxpayers (and most professional tax preparers) are clueless about these small-business-friendly tax savings, for a variety of reasons:

· The media gives very little publicity to these laws,

· Small-business tax law is not part of the ciriculum in most accounting schools,

· Knowledge of small-business tax law is not tested on CPA exams,

· IRS “publications” focus mostly on what you cannot deduct, not on what you CAN.

Here’s how your business can qualify for Small Home Based Business Tax Savings…

In order to be in compliance with the IRS,” you must:

1. Be able to Prove that you Intend to make a Profit.

o Write a Business Plan

o Estimate when you expect your business to become profitable

o Continually work to improve and expand your business

2. Tend to your business on a Regular and Consistent basis

o Regular and consistent activity is much more important than the number of hours.

o As little as 41 hour, 4-to-5 days a week is sufficient for the Tax Court

o Document your business activities in a day planner with ledgible notations.

3. Maintain Accurate Records

o Document All Business Income

Deposit all business income into a Business-only checking account

Keep a running log showing, for each check received:

Date received
Amount received
Source of income (company name, etc.)
Purpose of income received (i.e., Products Sold, Commissions, Bonuses, etc.)

o Document All Business Expenses

Use a business-only checking account for all business expenses
The purpose is to keep personal funds and business funds from co-mingling.
Use one or more credit cards exclusively for business expenses
Keep from co-mingling personal and business charges
Interest and fees on business-only cards are Tax Deductible.

o Document All Your Business Activities

A Daily Record is acceptable documentation(IF it is accurate and complete)
Show regular and consistent activity(as opposed to sporadic, inconsistent activity)

In my next article I will discuss what exactly you are able to deduct to take advantage of operating a small home based business for maximum tax savings.

What Should you do Next? Join the Savings Highway today and reap the many tax saving benefits the were specifically enacted by Congress to keep the United states Economy Strong.

NuVista Announces 2009 Year End Results

CALGARY, ALBERTA–(Marketwire – March 8, 2010) – NuVista Energy Ltd. (TSX:NVA) is pleased to announce its financial and operating results for the three months and year ended December 31, 2009 as follows: /