By DLO Consultants, LLC March 11, 2011
Karen Copeland was recommended to me by a friend when he heard I was moving to Orlando. Karen was his accountant when he lived in Oviedo and even though he now lives in MD, he won't give her up. She has been wonderful and a great help with our personal as well as our business taxes. I highly recommend Karen if you are looking for a professional accountat that really knows her stuff. ...read more
Federal Business Tax - FAQ series When do I start my tax year? Tax Years You must figure your taxable income on the basis of a tax year and file an income tax return. A “tax year” is an annual accounting period for keeping records and reporting income and expenses. An annual accounting period does not include a short tax year. The tax years you can use are: * Calendar year - A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. * Fiscal year - A fiscal tax year is 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. A required tax year is a tax year required under the Internal Revenue Code and the Income Tax Regulations. You have not adopted a tax year if you merely did any of the following. Filed an application for an extension of time to file an income tax return. Filed an application for an employer identification number. Paid estimated taxes for that tax year. If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. Generally, anyone can adopt the calendar year. However, if any of the following apply, you must adopt the calendar year. You keep no books or records; You have no annual accounting period; Your present tax year does not qualify as a fiscal year; or You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. Short Tax Year A short tax year is a tax year of less than 12 months. A short period tax return may be required when you (as a taxable entity): Are not in existence for an entire tax year, or Change your accounting period. Tax on a short period tax return is figured differently for each situation. Not in Existence Entire Year Even if you (a taxable entity) were not in existence for the entire year, a tax return is required for the time you were in existence. Requirements for filing the return and figuring the tax are generally the same as the requirements for a return for a full tax year (12 months) ending on the last day of the short tax year. For more information, contact us Changing your tax year Once you have adopted your tax year, you may have to get IRS approval to change it. ...read more
By Sunny Tax and Accounting, Inc. November 02, 2011
FAQ Series - Individual Income Tax - Federal Question: What should I do if I made a mistake on my federal return that I have already filed? Answer: It depends on the type of mistake that you made: Many mathematical errors are caught in the processing of the tax return itself so you may not need to correct these mistakes. If you did not report all your income or did not claim a credit, you should file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return. When filing an amended or corrected return: Include copies of any schedules that have been changed or any Form W-2 you did not include. File 1040X only after you have filed your original return. Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you timely filed your original return or within 2 years after the date you paid the tax, whichever is later.Please allow the IRS 8-12 weeks to process an amended return. ...read more
By Sunny Tax and Accounting, Inc. October 29, 2011
FAQ Series - Individual Income Tax - Federal Question: Is there an age limit on claiming my child as a dependent? Answer: Age is a factor in the qualifying child test, but a qualifying relative can be any age. As long as the following tests are met, you may claim a dependency exemption for your child: Qualifying child or qualifying relative test Dependent taxpayer test Citizenship or resident test Joint return test ...read more
By Sunny Tax and Accounting, Inc. October 29, 2011
Many people give money to family members as a gift in their time of need or if they come into a substantial amount of money. Giving money to a family member can sometimes be taxed; however, there are ways to avoid this this and give money to family members free of tax. ...read more
Many people have opted to learn to file their taxes themselves. This is a great way to save money, and it puts people in control of their own tax return. The process can be confusing, but there are enough resources to learn the correct method. ...read more