"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." --- President Ronald Reagan (1911 - 2004)Tax planningis something all businesses should do each and every year. The main reason behind the corporate tax planning is to minimize your taxes. The nice thing about brain storming with a tax man or attorney, is that they can help you find ways to minimize your taxes and bring something of value to you and your coporation. For instance, if you were to start up a retirement plan or health saving account, the dollars put in that fund would be pre-tax dolloar. When doing your corporate tax planning, don't forget about the normal deductions, including office expenses, travel, rent, depreciation and other things related to your business.If you are a sole proprietor, then remember to include your planning the self employment tax you will have to pay. Tax planning must take into consideration of the expenses against projected growth.There are couple of accounting methods available for businesses. If you happened to be a business that keeps inventory, then you will need to consider accrual or cash method. Again when doing your coporate tax planning, get help from your accountant or tax attorney.Knowing what options are can save you lots of stress and money. To find out these option, you will find more information on thetax planning tips. ...read more
By Jeff Huang CPA November 16, 2010
You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. Good record-keeping will help you remember the various transactions you made during the year, which in turn may make filing your return less, well, taxing. Records help you document the deductions you've claimed on your return. You'll need this documentation should the IRS select your return for examination. Normally, tax records should be kept for three years, but some documents - such as records relating to a home purchase or sale, stock transactions, IRA, and business or rental property - should be kept longer. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return: Bills Credit card and other receipts Invoices Mileage logs Canceled, imaged, or substitute checks or any other proof of payment Any other records to support deductions or credits you claim on your return Good record-keeping throughout the year saves you time and effort at tax time when organizing and completing your return. For more information on what kinds of records to keep, call our office at626-943-2888or visit us athttp://www.jhgroupcpa.com. ...read more
By Jeff Huang CPA October 09, 2010
The vast majority of Americans get a tax refund from the IRS each spring. But what if you're not one of them? What if you owe money to the IRS? Here are eight tips for individuals who need to pay taxes: If you get a bill for late taxes, you are expected to promptly pay the tax owed including any additional penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS. You can also pay the bill with your credit card. To pay by credit card contact either Official Payments Corporation at 800-2PAYTAX (also www.officialpayments.com) or Link2Gov at 888-PAY-1040 (also www.pay1040.com). The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. You can pay the balance owed by electronic funds transfer, check, money order, cashier's check, or cash. To pay using electronic funds transfer you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or 800-945-8400 or online at www.eftps.gov. You may request an installment agreement if you cannot pay the liability in full. This is an agreement between you and the IRS for the collection of the amount due in monthly installment payments. To be eligible for an installment agreement, you must first file all returns that are required and be current with estimated tax payments. If you owe $25,000 or less in combined tax, penalties, and interest, you can request an installment agreement using the web-based application called Online Payment Agreement found at IRS.gov. You can also complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS. The IRS will inform you usually within 30 days whether your request is approved or denied or if additional information is needed. If the amount you owe is $25,000 or less, provide the monthly amount you wish to pay with your request. At a minimum, the monthly amount you will be allowed to pay without completing a Collection Information Statement, Form 433, is an amount that will fully pay the total balance owed within 60 months.You may still qualify for an installment agreement if you owe more than $25,000, but a Form 433F, Collection Information Statement, is required to be completed before an installment agreement can be considered. If your balance is over $25,000, consider your financial situation and propose the highest amount possible, as that is how the IRS will arrive at your payment amount based on your financial information. If an installment agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged. This is automatically figured and is based on your income. For more information about installment agreements and other payment options, give our office a call at 626-943-2888 or visit http://www.jhgroupcpa.com for more tax saving tips. ...read more
By Jeff Huang CPA September 28, 2010
Payroll accountants are responsible for tracking the expenditure of money and assets through a company. Their job is to help companies track their income and maintain a timely payment record for expenses and bills. If you are interested in becoming a payroll accountant, you will have to be... ...read more
Computer files can sometimes be deleted by accident, get lost or damaged. This could be a potential nightmare, especially if these are small business accounting files. You have peace of mind by knowing how to use the "Backup and Restore" function in Microsoft Small Business Accounting. With a few keys... ...read more