April 15th – Tax Filing Deadline is Here!

by NFS | Apr 14, 2015 | Archives

Today is the filing deadline for your 2014 Individual Tax Returns and your 2014 Partnership Tax Returns! Today is also the deadline to file and pay your first quarter estimated tax payments.

If you haven’t finished up your returns and you need to file an extension, come on in today to our office and we will take care of that for you…FOR FREE!

Tips for Taxpayers Who Can’t Pay Their Taxes on Time

by NFS | Apr 14, 2015 | Archives

If you find you owe tax after completing your federal tax return but can’t pay it all when you file, the IRS wants you to know your options.

Here are four tips that can help you lower the amount of interest and penalties when you don’t pay the full amount on time.

1. File on time and pay as much as you can. Filing on time ensures that you will avoid the late filing penalty. Paying as much as you can reduces the late payment penalty and interest charges. For electronic payment options, see IRS.gov. If you pay by check, make it payable to the United States Treasury and include it with your return.

2. Consider getting a loan or paying by credit card. The interest and fees charged by a bank or credit card company may be lower than IRS interest and penalties. For credit card options, see IRS.gov.

3. Request a payment agreement.  You do not need to wait for IRS to send you a bill before requesting a payment plan. You can:

Use the Online Payment Agreement tool at IRS.gov, or Complete and submit Form 9465, Installment Agreement Request, with your tax return. Find out about payment agreement user fees at IRS.gov or on Form 9465.

4. Don’t ignore a tax bill.  If you get a bill from the IRS, contact them right away to talk about payment options. The IRS may take collection action if you ignore the bill, which will only make things worse.

In short, it is always best to file on time, pay as much as you can by the tax deadline and pay the balance as soon as you can. For more information on the IRS collection process go to IRS.gov or see IRSVideos.gov/OweTaxes.If you need help, please do not hesitate in contacting our office.

Last-Minute Tax Tips for Procrastinators

by NFS | Apr 2, 2015 | Archives

It’s April already. Are your taxes done? If your answer to the question is no, you are not alone. The Internal Revenue Service says as many as 25 percent of taxpayers file their returns the final two weeks before the filing deadline. The bad news for procrastinators is that they do not have the few extra days to get the job done as they have in the past with a weekend deadline and Monday Patriot’s Day Holiday. The traditional tax return filing deadline is April 15 of each year, and April 15, 2015 comes a few days after Patriot’s Day here in Massachusetts so you do not have extra days to timely file this year.

If you have not completed your taxes yet, here are some stress-relieving ideas:

Don’t Procrastinate Anymore – Resist the temptation to put off your taxes until the very last minute. Your return takes time to prepare and your preparer may need to request certain documents from you, which will take additional time.

Don’t Panic If You Can’t Pay – If you can’t immediately pay the taxes you owe, consider some alternatives. You can apply for an IRS installment agreement, suggesting your own monthly payment amount and due date, and getting a reduced late-payment penalty rate. You also have various options for charging your balance on a credit card. There is no IRS fee for credit card payments, but the processing companies charge a convenience fee. Electronic filers with a balance due can file early and authorize the government’s financial agent to take the money directly from their checking or savings account on the April due date, with no fee.

Request an Extension of Time to File,– But Pay on Time – If the clock runs out, you can get an automatic six-month extension, bringing the filing date to October 15, 2015. The extension itself 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 if you have not paid at least 90 percent of your total tax by that date. Contact your tax professional for a variety of easy ways to apply for an extension.

To get an estimate of what you owe, you generally have to do a dry run of your tax return—which probably means you will have almost everything you need to file anyway. If they’re 90 percent done, it’s really in your best interest to just get it done and file by April 15th.

Federal Corporation Return Filing Deadline and Extensions

by NFS | Mar 11, 2015 | Archives

The deadline for filing federal calendar year corporation returns is rapidly approaching. These returns must be filed (e-filed or postmarked) by midnight (local time) on March 16, 2015, The deadline is the same for extensions.

Payment must accompany the return or extension if there are taxes due. An extension of time to file does not extend the time to pay taxes that are due.

Contact us at Northeast Financial Strategies if you need assistance with your corporate return or extension filings – 800-560-4637Wrentham, Norfolk, Plainville, Franklin, Walpole, income tax, tax calculator, hr, irs forms, Jackson Hewitt, tax, tax act, tax return, tax brackets, income tax return, tax refund, taxes, accountant, h&r, tax return calculator, tax forms, free tax filing, federal income tax, federal tax forms, federal tax return, tax online, tax returns, online tax return, irs e file, tax return status, file taxes online, tax preparation, income tax return online, instant tax services, accountants, income tax filing, income tax forms, federal tax, estimate tax return, taxes online, online tax filing, tax services, federal taxes, what is income tax, tax filing, tax questions, online tax, e filing income tax, irs free file, free tax preparation, filing taxes, file taxes, state taxes, tax accountant, h and r, tax planning, free tax return, free federal tax filing, online taxes, free state tax filing, free online tax filing, federal income tax forms, tax help, free tax, how to file taxes, tax preparer, tax consultant, free taxes, income tax returns, complete tax, federal tax forms, free taxes online, income taxes, income tax return efiling, free efile, h&r, tax advisor, tax advice, best place to do taxes in wrentham, wrentham tax, wrentham tax planner, wrentham tax prep, wrentham income, wrentham income tax, wrentham accountant, wrentham accounting

How do I Apply for an employer identification number (EIN)?

by NFS | Mar 10, 2015 | Archives

Employers and other organizations must obtain an employer identification number (EIN) to identify themselves for tax administration purposes, such as starting a new business, withholding taxes on wages, or creating a trust. Entities apply for an EIN by filing IRS Form SS-4. Page two of the form advises whether an applicant needs an EIN.

Other entities that need an EIN include corporations, partnerships, estates, trusts, state or local governments, and churches and other nonprofit organizations. Unincorporated entities (sole proprietorships) that establish a retirement plan or that file certain tax forms will also need an EIN for filing the relevant forms.

Application process

The IRS does not charge for obtaining an EIN and has sought to simplify the application process. Taxpayers may apply by mail, by fax, or online. International applicants may also apply by phone. In all cases, if the IRS determines that the applicant needs an EIN, the IRS will issue the EIN and transmit it to the taxpayer in the same manner as the application was made.

Applications by mail generally take four weeks, the IRS indicates, once the SS-4 is properly and completely filled out. Entities located in the U.S. or a U.S. territory can apply online. For online applications, the IRS validates the information and issues the EIN immediately. The IRS notes that the principal officer or other relevant party must have a valid taxpayer identification number, such as a Social Security Number, to use the online application process. The IRS will respond to a completed fax application within four business days, if the applicant provides a fax number.

Filing without EIN

The IRS states that it will only issue one EIN per day per responsible party, regardless of the means of applying. If the taxpayer needs to file a return but lacks an EIN because of this limitation, the IRS advises that the taxpayer should attach a completed Form SS-4 to the completed and signed tax return. The IRS will assign an EIN and then process the return.

We’re Here to Help

We can help you apply and obtain your EIN and also help you set up and help you run your small business or non-profit. Contact Northeast Financial Strategies Inc. today at 800-560-4637.

A Focus on Tax Strategies

by NFS | Mar 4, 2015 | Archives

Taxes and inflation erode the return you make on your investment portfolio. If you are in a 30% tax bracket and inflation is 4%, you need to earn 5.7% to earn nothing.

Any effective plan to minimize your income taxes requires an ongoing effort on your part. That means you have to plan and make adjustments year-round, not just when you fill out your tax forms. Most tax preparers are just scorekeepers. They are reactive rather than proactive. You should work with a firm available throughout the year, not just one time a year.

There are three broad categories of tax-favored investments that reduce your income taxes. These are: “Tax-Exempt”, which offers income that is not taxed by the federal government; “Tax Deferred”, which defers taxes on accumulation until it is withdrawn; and “Tax Advantaged” instruments, which provide a tax credit against taxes.

Municipal bonds and Tax Free Money Market funds are two types of tax exempt vehicles.

The most popular tax-deferred investments are 401k plans, and IRA’s – both Traditional IRA’s and Roth IRA’s. Other tax-deferred alternatives are annuities, life insurance, and individual stocks and mutual funds.

Tax advantaged alternatives legally shelter income from taxes by creating a tax credit versus a tax deduction. The 3 primary Taxadvantaged vehicles are: Rental Real Estate, Low Income Housing and Historic Rehabilitation Properties.

Older annuity and life insurance contracts can be exchanged for newer, higher paying interest contracts by using a 1035 exchange. This IRS section allows you to reposition these investments without incurring any tax liability.

The tax law allows married couples to exclude up to $500,000 of capital gains on the sale of their personal residence. This benefit can be used every two years.

There are numerous options available for all of these strategies and a tax and financial professional should assist you in selecting one that properly fits your specific needs.Contact Northeast Financial Strategies for help in these areas. We are only a call away – 800-560-4637.