You may have a great idea for a startup and want to begin the process of establishing your business. You find yourself focused on marketing, advertising, financing, hiring or whatever else your company needs. But before you proceed any further, take a step back and consider the tax implications of your small business. If you do not review how the setup of your business will affect the taxes you will owe, you may end up having to pay more than you expected. Start by considering these three factors.
Starting a charitable organization is unarguably a kind thing to do. Just as important as the charity work you do is how you run your nonprofit, not only for the benefit of the cause you serve but also for your own advantage. You may think that your charitable organization is automatically tax exempt by nature, but it needs to meet specific requirements and follow certain rules to receive and maintain the status of tax exemption. The Internal Revenue Code outlines these standards in section 501(c)(3).
Failing to pay payroll taxes causes severe penalties from the IRS. In fact, the IRS tends to view this kind of tax evasion as more serious than that of income tax evasion. Usually businesses don't pay employment taxes du e to financial hardship, but another reason a business may not be paying them is due to paying employees in cash. This isn't illegal unless the purpose behind it is to avoid paying taxes. The practice of not reporting cash payments is usually associated with employees, but it applies to employers, too. Here's what you need to know about cash payments so you don't end up with fines or even a jail sentence.
Taxes are no fun to prepare, but doing them correctly can reduce the chances that the IRS will audit you. The likelihood of an audit is already very small, but it can increase significantly if you make mistakes, lie on your form or earn $1 million or more. The IRS searches for errors and omissions that will increase its revenue. Follow the se tips to avoid red flags that can get you audited.
We've all passed the billboards or heard stories on the local news channels about the growing Powerball jackpot. Though it's only in the millions now, just a few short months ago that number had climbed to $1.5 billion, making it a rather enticing payday for a majority of people.
Each year during tax season, we receive questions from many Georgia taxpayers about IRS audits. In particular, individuals and small business owners want to know what they can do to minimize their risk of being audited. While there is no way to completely avoid an audit, being accurate when completing your tax filings should help. Accuracy will also work in your favor if the IRS selects your tax return to audit.
Many taxpayers in Georgia look forward to receiving their annual W-2 form from their employer. The W-2 form -- officially, the Internal Revenue Service's Wage and Tax Statement -- lists an employee's wages for the year as well as some other key figures, including federal income tax withholding. In order to file taxes with the IRS - and, in many cases, receive their tax refunds -- workers need the information from their W-2 from their employers.
Nobody wants to pay more in taxes than necessary. To that end, the Internal Revenue Service offers taxpayers a variety of allowable deductions regarding several types of expenses, such as those related to childcare expenses or employment. Like all deductions, though, it is important to be mindful of the permissibility of what you're trying to claim.