by NFS | Jan 27, 2012 | Archives
WASHINGTON, D.C.- The Internal Revenue Service warned Thursday that tax refunds could be delayed a week this tax season because of new anti-fraud safeguards.
“The IRS has opened its filing season successfully this month, and refunds have started going out to many taxpayers,” the agency said in an email to tax professionals on Thursday. “As with the start of any tax season, there are system validations that occur requiring some fine-tuning of our systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.”
The IRS noted that the one-week delay is related to the fine-tuning of IRS systems to adjust for new
safeguards that were put in place this tax season to provide for stronger protection against tax refund fraud. The agency has come under heavy criticism for the increasing number of identity theft cases related to tax refunds, and it recently added more stringent measures.
The IRS said it is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.
The IRS also noted that the refund time frames provided by the “Where’s My Refund” tool on its Web site are projected time frames and are subject to revision. “Many different factors can affect the timing of the refund after the IRS receives the return for processing,” said the agency. “The IRS apologizes for any inconvenience caused by the revised refund dates.”
When the IRS announced the opening of the 2012 filing season, it advised taxpayers who electronically file and select direct deposit that they could see their refunds in as few as 10 days and 90 percent of refunds are provided within 21 days, the IRS added. Some taxpayers are getting refunds much faster, according to the agency, but at this time taxpayers should expect refunds to be issued as indicated in the original IRS guidelines.
By Michael Cohn, Accounting Today
by NFS | Jan 26, 2012 | Archives
There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed.
Here are six key points the IRS would like you to know about self-employment and self- employment taxes:
- Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job.
- If you are self-employed you generally have to pay self-employment tax as well as income tax. Self-employment tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income.
- You file an IRS Schedule C, Profit or Loss from Business, or C-EZ, Net Profit from Business, with your Form 1040.
- If you are self-employed you may have to make estimated tax payments. This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you fail to make quarterly payments you may be penalized for underpayment at the end of the tax year.
- You can deduct the costs of running your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year.
- To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.
For additional help with your small business, give us a call.
IRS Tax Tip 2012-16
by NFS | Jan 25, 2012 | Archives
What is a living will and why should you consider one?
http://archive.constantcontact.com/fs088/1102707121899/archive/1109072192279.html
by NFS | Jan 25, 2012 | Archives
On December 2, 2011 the US Department of Transportation released a final rule regarding Cell Phone
(Mobile Communications Device) by drivers of Commercial Motor Vehicles: Pipeline and Hazardous
Materials Safety Administration (PHMSA) and the Federal Motor Carrier Safety Administration (FCMSA).
This is a final rule in effect on January 3, 2012, which effectively prohibits the use of a cell phone for communications, either by voice or texting, while the driver is underway. The rules
may be viewed at 49 CFR Part 177 and 383.
This rule will apply to all drivers of commercial vehicles; trucks, busses and any vehicle that requires a
Commercial Driver’s License while on a public highway. Specifically, the rule requires that anyone
convicted the second time in 3 years of violating a State rule regarding the use of a hand held cell phone
be disqualified from driving for a minimum of 60 days and if convicted the third time in 3 years,
disqualified for 120 days. It also states that no employer may require the use of a hand held
communications device while operating a motor vehicle. The definition of driving, for the purposes of this
regulation, means the Commercial Vehicle is on the highway, even if stopped at a traffic control device or
stuck in traffic. To use a cell phone or mobile device, the vehicle must be off the highway and stopped.
Push-to-talk phone use is also prohibited.
The use of a radio with a push to talk microphone, GPS, or traffic management system is not covered by
this rule. If a phone or other mobile communications device is used, it must not require holding in the
driver’s hand and must be actuated by a single push of a single button. The driver must be able to
operate this device while seated and with the seat belt fastened in place.
Exemptions will be allowed for operation of Commercial Motor Vehicles by military and emergency
response personnel, firefighters, farmers and local government personnel engaged in snow and ice
removal operations. There is also a provision allowing for contact with law enforcement personnel by a
driver in the event of an emergency. Information regarding this regulation is contained in the websites
provided below.
Information regarding the Federal Cell Phone Use Policy:
http://www.fmcsa.dot.gov/about/news/news-releases/2011/Secretary-LaHood-Announces-Step-towards-
Safer-Highways.aspx
Frequently Asked Questions regarding the Cell Phone Use Ban:
http://www.fmcsa.dot.gov/about/other/faq/cellphone-ban-faqs.aspx
by NFS | Jan 24, 2012 | Archives
Free Income Tax Preparation Giveaway!!
Gold’s Gym Foxboro MA – Open House
Saturday, January 28th, 2012
8:00am to 2:00pm
Join NFS at the Gold’s Gym Open in house in Foxboro MA this Saturday from 8am-2pm. We will be giving away FIVE (5) FREE INCOME TAX PREPARATION Certificates!!! Other Door Prizes, Free Food, Free Drinks, Free Workouts, Kids Activities, Jumpy House, Face Painting & MORE!!!
by NFS | Jan 24, 2012 | Archives
NEW YORK – Former Massachusetts Governor and Republican Presidential candidate Mitt Romney said he would release his 2010 tax return and an estimated tax return for 2011 on Tuesday in the wake of a stinging defeat in the South Carolina primary and renewed pressure from fellow Republicans.
Speaking on Fox News Sunday with host Chris Wallace, Romney admitted he had made a mistake in not releasing the tax returns earlier.
“I’m going to make it very clear to you right now, Chris, that I will release my tax returns for 2010, which is the last returns that were complete,” he said. “I will do that on Tuesday of this week. I will also release at the same time an estimate for 2011 tax returns.”
After initially saying he might not release his tax returns at all, Romney said last week that he would release the tax returns around April 15. But demands for his tax returns have been escalating over the past week. New Jersey Governor Chris Christie is among those who have publicly urged Romney to release his tax returns.
Romney also disputed accusations that his holdings in Bain Capital funds based in the tax haven of the Cayman Islands were intended as a way to evade taxes.
“The taxes paid on that are full U.S. taxes,” he said. “I know people will try and find something. But we pay full fair taxes, and you’ll see it is a substantial amount.”
Romney said the tax returns would be posted to his campaign Web site for anyone to view.
“It will provide, I think, plenty of information for people to understand that the sources of my income are exactly as described in the financial disclosure statements that we put out several months ago,” said Romney.
His campaign also urged rival Newt Gingrich, who won the South Carolina primary on Saturday, to release his contract with Freddie Mac. Gingrich has insisted that he only acted as a “strategic advisor” for the housing agency, but rival candidates have accused him of being an unregistered lobbyist. Gingrich released his tax returns last week and on Monday evening his former consulting firm released the first year of his contract with Freddie Mac.
During a Republican candidate debate Monday evening in Tampa on NBC, Romney told the audience and his fellow candidates, “You’ll see my income, how much taxes I’ve paid, how much I’ve paid to charity. I pay all the taxes that are legally required and not a dollar more. I don’t think you want someone as the candidate for President who pays more taxes than he owes.”
The Associated Press saw a preview of Romney’s tax return and said he paid about $3 million in federal income taxes in 2010 on $21.7 million in earnings. Donations of close to $3 million to charity, about half of which went to the Mormon Church, lowered his effective tax rate to approximately 14 percent. In 2011, Romney is expected to pay approximately $3.2 million in taxes, an effective tax rate of about 15.4 percent.
By Michael Cohn, Accounting Today
