Tax, Accounting, and Auditing: Tax Calendar for March 2013

Tax, Accounting, and Auditing: Tax Calendar for March 2013: Wed March 13 Deposit payroll tax for payments on Mar 6-8 if the semiweekly deposit rule applies.   Fr March 15 Corporations: ...

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Tax Calendar for March 2013

• Wed March 13
• Deposit payroll tax for payments on Mar 6-8 if the semiweekly deposit rule applies.  
• Fr March 15
• Corporations: File Form 1120 for calendar year and pay any tax due. For automatic 6-month extension, file Form 7004 and deposit estimated tax. 
• Employers: Deposit payroll tax for Feb. if the monthly deposit rule applies.  
• S Corporations: File Form 1120S for calendar year and pay any tax due. Furnish a copy of Sch. K-1 to each shareholder.
• File Form 2553 to elect S Corporation status beginning with calendar year 2013. 
• Electing Large Partnerships: Furnish Sch. K-1 (Form 1065-B) to each partner. 
• Deposit payroll tax for payments on Mar 9-12if the semiweekly deposit rule applies.

• Wed March 20
• Deposit payroll tax for payments on Mar 13-15 if the semiweekly deposit rule applies.  

• Fr March 22
• Deposit payroll tax for payments on Mar 16-19 if the semiweekly deposit rule applies.

• Wed March 27
• Deposit payroll tax for payments on Mar 20-22 if the semiweekly deposit rule applies.

• Fr March 29
• Deposit payroll tax for payments on Mar 23-26 if the semiweekly deposit rule applies

 SOURCE: HTTP//IRS.gov

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Did you file your 2009 Tax Return?

The announced that it has $917 Million for People who have not filed a 2009 Income Tax Return

The IRS claim that they are approximately 984,400 taxpayers who did not file a federal income tax return for 2009, and it estimated that if the total refund could reach in the hundred of millions of dollars. However, you must file a return for 2009 by no later than Monday, April 15, 2013.  The average refund considering those estimates are more than $500 per tax return.  (These numbers may varied depending on the taxpayer and this calculation is an arithmetic average.)

What Happens if you do not file by the due date? The money becomes property of the U.S. Treasury.

Would you be assessed with a Penalty for filing a late return that qualiifies for a refund?  No, generally there is no penalty. Although, the tax return must be "Properly filed" (IRS definition) with the IRS.

What happens if I already owe money to the IRS? The refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past due federal debts such as student loans.

Contact your CPA if you have not filed your 2009 tax return.

Source: http://IRS.gov




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Education Credits and Depreciation issues

The IRS wll begin processing Tax Returns with Education Credits and Depreciation charges this week.  The forms in question are:

• Form 8863- Education Credits (February 14, 2013)
• Form 4562- Depreciation and Amortiization (February 10, 2013)

Why the delay?

The IRS will be able to accept the education credits and depreciation forms following the completion of reprogramming and testing of its systems. Work continues on preparing IRS systems to accept the remaining tax forms affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.

 

What follows next?

 

The remaining forms affected by the January legislation the first week may begin processing earlier in March. A specific date will be announced later. 

Education Credits:

 

Form 8863- Education Credits. Form 8863 is used to claim two higher education credits like the American Opportunity Tax Credit and the Lifetime Learning Credit.

 

Depreciation and Amortization Charges:

 

Form 4562- Depreciation and Amortization. This applies to 1040 business filers.

 

What you mean by the delay?

 

Your tax return will not be processed until the patches are made and your tax refund may be delayed. 

 

 

More information is available on the IRS website or by contacting your CPA.

 

 Source: IRS.GOV

 

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January 30, 2013 to begin processing 1040s?

IRS Plans Jan. 30 Tax Season Opening For 1040 Filers

WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30 for some taxpayers. 

The IRS estimate that 120 million households that file early will be affected. The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension.

The IRS will not process paper tax returns before the anticipated Jan. 30 opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.

Why the delay?

The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. ‬While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns.

Who Can File Starting Jan. 30?

The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who can file past Jan 30?  

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting these tax returns between late February and into March 2013.  Examples of tese forms are: Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms will be available soon on the IRS website-IRS.gov.

Updated information will be posted on IRS.gov.

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2012 Tax Relief Bill is pass

The US Senate passed a bill extending most of the tax breaks in effect in 2012, including the AMT patch and the extenders provisions.  The bill is expected to pass in the House and be signed into law by the President, soon. Some taxpayer may have to wait again, like they did in 2011, until mid February until the IRS may all adjustments to forms and computer processing code.

This bill was passed because of fear of the economy going into recession on more time. Details will follow, so consult with your tax accountant (i.e., CPA) for more up-to-date information.

Source: IRS.gov



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2013 IRS Tax Calendar- January 15, 2013

January 15, 2013

Pay the final 2012 estimated income taxes (Form 1040-ES). Include fiduciary estimated tax payments (Estate and Trust).

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Hurricane Sandy Relief Resurces

Small Tax-Exempt Organizations

Small tax-exempt organizations affected by Hurricane Sandy have until February 1, 2013 to apply for reinstatement of their exempt status.   

Who Qualifies?  The organization’s principal place of business or its records must be located in the covered disaster area. Organizations located outside the affected areas must still apply for transitional relief by December 31, 2012.

Employer-Sponsored Retirement Plans

The Internal Revenue Service announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Sandy and members of their families.

Source: http:///www.irs.gov

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Year end tax saving tips

Year-end tax savings tips

We all want to save in taxes and there are few suggestions:

• Pay the 2013 property taxes due in December 2012.
• Take advantage of all Tax Provisions that expire by year-end this year instead of next year.
• Realize capital gains by year end.
• Bunch all medical deductions, if you can, in one year.
• Selling capital assets this year.
• Etc...

Why this can be beneficial?

It will all depend on your income, the new tax changes, and the expiring provisions coming into next year.  They are talks about a raise in the tax rates, expiration and elimination of some tax provisions, and higher income thresholds. Everything is on the table for congress next month and there is speculation of a compromise.

Hire an Accountant or a Tax Attorney to see how these could impact your taxes.

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IRS factors to consider by courts in determining whether an individual is an employee or an independent contractor

The IRS defines an "employee" for employment tax purposes as "any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee."   The facts that provide evidence can fall in three major categories: Behavioral Control; Financial Control; and Types of Relationship.

What fators weight more than others?

Under common law rules, prior court cases had placed emphasis on the direct control and the method and manner in which the work is to be done.

Few of the many factors the IRS consider are:

1- the degree of control exercised by the principal;

2-whch party invests in the work facilities used by the worker;

3-the opportunity of the individual for profit or loss;

4-whether the principal can discharge the individual

5-whether the work is part of the principal's regular business;

6-the permanency of the relationship;

7-whether the worker is paid by the job or by the time;

8-the relationship the parties believed they were creating;

9-the provision of employee benefits;

10-training provided by the employer;

11-set hours of work;

12-doing work on the employer's premises;

13-furnishing tools and materials;

14-worker not making his/her services available to the general public on a regular and consistent basis;

15-requiring the worker to submit oral or written reports;

16-requiring the worker to provide the job on a sequence or order set by the employer;

17-a requirement that the work be performed personally;and

18-any other factors that the court determine relevant and based on the evidence presented under the circumstances.

The Texas Workforce Commission (TWC) have their own set of rules in their determination.  For a clear understanding of the man factors, you must consult the TWC, IRS regulations.

Source(s): various IRCs like Sec 3121 and  Sec. 3003.

May want to consult your tax attorney. 

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