Accountants - Get Listed!
Tackling Your Taxes
Get organized. You can significantly reduce the amount of time that it takes to prepare your tax return if all of your financial records are in one place. You will want to make sure that you have all your income and deduction documents handy and a copy of last year's tax returns available for reference.
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Need to FILE TAXES?
Don't procrastinate. If you have lost paperwork or if some information is missing, waiting to the last minute may prevent you from obtaining all the forms and documents that you need to file your tax return on time, you can even do it online at irs.gov. Be on guard for tax scams. If the tax deductions promised sound too good to be true, they probably are. IRS TAX RELIEF - TAX NEWS AND TIPS
Scam artists make money by making you believe that you don't have to pay taxes. If you don't pay the correct amount of taxes owed, you will be the one responsible for paying any sort of penalty incurred.
Most individual taxpayers can pay the taxes they owe electronically if they file using the telephone or using a computer. Electronic payment options give taxpayers an alternative to paying taxes by check or money order. Payments can be made 24 hours a day, 7 days a week.
If you can't immediately pay your taxes, one option is to set up an installment agreement. You can do this by filing a Form 9465 or calling 1-800-829-1040. This installment option will allow you to pay what you owe in monthly payments rather than one lump sum. Note that if you must make payments, interest and penalties will apply. If that does not fit your particular financial situation, you may have a special case and be eligible for the new Tax Payer Advocate Service.
If the clock is about to run out, request an extension of time to file. You can get an automatic four-month extension of time to file, to August 15. Call 1-888-796-1074, e-file or mail a Form 4868 to the IRS. Note that the extension does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty.
The last thing most people think when they start a business is doing taxes. But proper planning will make doing your taxes much easier - and keep the IRS happy!
Here are 3 simple tips to keep proper records:
1. When you buy supplies or anything for your business, keep the receipt!
Not only will this keep a lot easier, but if you ever checked, you can prove your costs and save yourself money.
2. Write down all your expenses and income as they happen. Saves you from losing track.
As your business grows, you will have more and more activities to keep you busy. The last thing you want to do tax time is to organize your records for years. So write down all your financial activities as they happen. You can prepare your taxes will take much less time if you are organized.
3. Learn to save money on your taxes.
To learn more about taxes, you will notice that many deductions (expenses reduce your income, so your taxes) you can not clear. When you use your home office, you may be able to draw (in least in part) to do repairs around the house, tools, home value at the time you start your business, and more.
The more you know about taxes, and more organized you are in keeping records, the more time and money you save at the end of every year! And we all like to save money.
What happens if you do not keep proper records?
People with small businesses are the most likely to have their tax returns audited by the IRS. If you do not have a receipt, you will probably lose the deduction and owe the IRS money.
And while a revision has no reason to fear that you should be prepared - the more organized your records, the easier it will be to prove your case.
If you do not have one, get a file box and some folders on your local office supply store (tax deductible, so keep your receipts!)
Put all your receipts in the correct folders and put them in a safe place.
Another way to save time is to record all your business transactions - spending and revenue - to a spreadsheet on your computer. Keep a column for income, advertising, supplies, etc. You do not need to be a computer expert. But to keep accurate, organized records will help you save time when filling out your taxes at the end of the year.
And it can help you plan, by giving you a snapshot of your financial progress whenever you want.
May come in handy when you need to place ads, borrowing money - or take a much needed and deserved vacation!