Горизонт N5/834

RUSSIAN DENVER / HORIZON
8
N05/834 от 02.05.2016 e-mail: info@gorizont.com Simply the best
should make estimated tax
payments. If you earned income
all year, but paid taxes in
December, you might owe penalties
for not making estimated
tax payments.
You make estimated tax payments
by mailing form 1040-
ES along with your check to
IRS. Please consider State tax
liability as well.
Estimated tax payments are
due by April 15th, June 15th,
September 15th and January
15th the following year. If you
earned more in the current
year than in the previous year,
you should pay at least 100 %
of your prior tax liability, or
110 % if your AGI (Adjusted
Gross Income) is more than
$150,000 ($75,000 MFS).
You can make estimated tax
payments by mailing a personal
check, direct withdrawal from
your account, or by credit card.
10. Minimizing your risk of
tax audit
Getting an IRS (or any tax
authority) audit letter in the
mail is not a pleasant experience.
If you get this letter, it is
does not mean that you will
owe millions in unpaid taxes
and penalties, it means that you
will be wasting your time going
to a tax office, getting all of your
tax documents together and
losing sleep for a few months.
Many tax audits are resolved
as no change audits, meaning
all was reported correctly and
tax deductions were allowed by
tax authorities. However, there
are also tax audits that result in
deficiencies in disallowed tax
deductions, unpaid taxes and
assessed penalties.
To make the story short –
audits are not fun!
It is impossible to ensure
that your personal or business
tax returns will not get audited.
However, there are certain tips
you can use to at least minimize
your chances of meeting
face to face with IRS officials.
The two most common audits
are the correspondence
audit and the office audit. A
correspondence audit is usually
the least complicated. First you
get a letter in the mail where
you are asked to provide a specific
information on a particular
topic or deduction. Typically
it is just on one particular
item, such as $5,000 charitable
contribution you deducted on
Schedule A, or any particular
tax deduction for your business.
Submitting the required
tax information to the IRS usually
concludes the audit.
An office audit is when you
are asked to show up to an IRS
office with all your receipts and
bank statements. These types
of audits are usually performed
for the past two years in one
audit. For example, you will get
a letter inviting you to the IRS
office because your 2015 and
2014 tax returns are being examined.
I agree with you that
this is not fun!
So what solutions can be offered
to decrease the chances of
getting these types of inquiries?
E-file your tax returns. The
security on your tax return.
ВНИМАНИЮ This issue by ВЛАДЕЛЬЦЕВ itself can cause an КРУПНЫХ,
IRS correspondence audit.
СРЕДНИХ И МАЛЫХ БИЗНЕСОВ!
To avoid this issue, you
would need to report this income
on your individual tax
Закаленный в победах доблестный отряд
return either on Schedule C
славных or Other вебмастеров Income and then газеты remove
о начале it by typing грандиозного reported un-
строительства...
"Горизонт"
объявляет
единой русской der EIN of электронной your corporation. общины Колорадо.
audit you because they believe
some deductions were overestimated
and they will be able to
disallow them, thus increasing
your tax liability.
Expensive Meals and En-
e-file process will eliminate
tertainment can trigger an
mathematical errors, and resolve
IRS audit as well as substancies
other minor discrepantial
number of business Travel,
such as correct names, social
Mileage, or Professional fees
security numbers, etc. You need to show an audit trail without issuing 1099s to sub-
Make sure all forms are that tax authorities can follow. contractors.
reported on your tax returns.
Also, you need to update your Sadly, I have seen tax re-
When you receive form W-9 form with your customer, turns prepared by CPAs and
1099-Misc, for example, the so next year you’ll receive a other tax professionals that
IRS receives one copy as well. 1099-Misc under your company’s
trigger IRS audits for their
Therefore, they will be looking
EIN. You can also ask your clients. Therefore, it is your
for you to disclose it on your tax 1099-Misc form provider to job to keep all your business
return. This is why it is important
amend your 1099 and reissue a receipts and question the rea-
to disclose all forms under new one.
sonability of deductions. For
your social security number on
Интернет
If you are self-employed
сайты ВСЕХ
you
русских
instance, were
бизнесов
they truly business
related, or did I just go
your personal tax return first. will need report your business
и частных activity on предпринимателей
Schedule C. to see my aunt and took that
For example, if you operate
your business as an S-corporation
IRS на одном targets people гигантском who report портале. travel as a business expense?
with a separate EIN, but, their business activities on Should I change my busi-
when you started your business Все бизнесы Schedule C могут because принять they believe
that people underreport a partnership, if I have busi-
участие ness into в проекте an S-corporation or
you provided your customer
with your social security number
instead. Therefore, независимо all the their от expenses. особенностей If you claim других Schedule видов C рекламы.
altogether?
their
СОВЕРШЕННО
income and overestimate
БЕСПЛАТНО
ness partners and move from
income earned under S-corporation
a home office deduction, this Don’t let tax and accounting
was reported on your can increase the audit risk. In matters complicate your life
1099-Misc under your Это social my Новогодний opinion, what raises the подарок
red and distract you from building
security number.
flag is your gross income to net the business you are passionate
от газеты "Горизонт"
What are you going to do? income ratio. For example, if about. We are here to help, educate
and guide you so that you
If you report this income under
your business tax return, but your tax deductions are can succeed. Be sure to check
Для
your gross
этого
revenue
надо занести
is $100,000,
информацию
you will get a letter from the
о своем
$95,000,
бизнесе
that leaves
ДО НОВОГО
you with
ГОДА
our blogs,
по адресу
videos and other
IRS stating that your income $5,000 in net income and depending
www.gorizont.com/letmein
on your business inedge
about tax and accounting.
courses to deepen your knowl-
is underreported. That would
be correct, because you did not dustry, 5 % net income could Natalya Korobkova-Itu
show the income reported on be considered very low.
Colorado Business CPA
1099-Misc under your Все social вопросы Therefore, по the IRS тел. might 720-436-7613
720–457–3272