The Internal Revenue Service is reminding truckers and owners of heavy highway vehicles that in most cases, their next federal Highway Use tax return is due August 31st. The deadline applies generally to Form 2290 and the accompanying tax payment for the year that begins July 1st, 2017 and ends June 30, 2018. Returns must be filed and tax payments made by the deadline for vehicles used during July. If you used the vehicle after July, the deadline is the last day of the month following the month you used the vehicle in.
Identity theft can happen to anyone, at any time, and despite protections you have, it could drastically affect your finances. Identity theft can not only affect you bank account or credit card, it can also affect your taxes and possible refunds you could receive. If someone gets ahold of your Social Security number or even your Employer Identification Number, they could use that to file a tax return or obtain a fraudulent refund. Most people don’t even find out they are victims of identity theft until they submit their tax return and the IRS tells them someone has already filed using that Social Security number.
The IRS works to stop identity theft from happening but you can help protect yourself. The IRS has provided these simple 8 tips that could help you stop identity theft before it happens.
Not filing your tax return is not only against the law, it could also leave you with a large balance owed to the government with some penalties and interest added on. That’s why you need to always, always, file your tax return, even if you can’t pay your tax liability in full. This can not only help you stay in compliance with the federal government, but it also helps you avoid penalties and other consequences. If you have a balance due, filing your past due return now and paying your tax liability can limit the interest and late payment penalties you have to pay.
When doing your taxes, it’s important to know the different types of costs your company has and how they fit into your overall expenses. You can split almost all of your business expenses into two different categories; job costs, and general & administrative expenses.
During the summer, a lot of taxpayers will travel not only for vacation, but also so that they can participate in a charity service trip. These trips help not only someone in need, but they can also help you lower your taxes each year. For those of you who do travel for a charity, or for those of you thinking about it, there are a few things you should keep in mind before you book that plane ticket.
If a Revenue Officer is assigned to your case to collect your past tax debt you should not act alone. Revenue Officers are authorized with absolute collection power. Normally we tell clients that the IRS will not call them. The exception to this rule? IRS Revenue Officers. Not only can they call you, they can show up on your doorstep! If it is your business that’s in tax trouble be prepared for the possibility that your customers will receive notices instructing them to send the IRS your money instead of sending it to you.
Unfortunately, there are some deductions that don’t fit into one tax category. Those miscellaneous deductions can help reduce taxable income and the amount of taxes owed. You might not know for instance, that your employee uniform can be a work expense that you can deduct from your taxes. But if you choose to write off certain miscellaneous deductions, you must then itemize your deductions instead of taking the standard deduction on your tax return.
If you do decide to itemize your deductions, here are a few things to keep in mind.
Buying that new drill or new boots for a new project could set you back several hundred dollars in your budget. Luckily for you, you could get some major tax deductions with those purchases. You can usually deduct the cost of some of the tools and equipment you buy for your business. Some items you buy can be fully deducted for that year, others you can deduct over time while the item depreciates.
This month’s closed case round up feature IRS mistakes, local small businesses, and a dishonest CPA that left their client high and dry.
Case #1: Our client was a disabled veteran who was barely able to make ends meet and owed the IRS over $100,000. His problems started shortly after his father died and he became a trustee for his father’s investments. Our client did not receive the letters the IRS sent him and didn’t realize he owed money until it was too late. Living on less than $1,000 a month, our client ended up getting levied, with the IRS taking over $100 out of his disability checks. We were not only able to get his levy released, but we were also able to put him into a currently non-collectible status saving him about $112,709 in the process. Now our client receives his full disability check and can live without fear of owing money to the IRS.
Most contractors know that you can deduct a lot of your mileage on your taxes, but many don’t know that mileage can be your BIGGEST tax deduction each year.
If you’re an independent contractor who drives back and forth from job sites, you can deduct the mileage and the expenses for the miles you drive. If you drive from one job site to another, that mileage is deductible as well. As long as each site is a temporary job site, all the miles you drive to and from, should be deductible.