Tax Preparation & Filing Time – Short Burst of Info, Tips and Tools

Strategy Plan One

March 21, 2012 

Tax Returns

Dreadful as it may seem, just around the corner is the tax filing deadlines.  Here is a quick burst of information, helpful tips, tools and resources to help you with effective and efficient tax filing.

Tax Preparation and Filing Tips

• Take advantage of current year tax savings initiatives; regulations and rules tend to vary on a year by year basis
• File on time to avoid any late submission penalties
• Pay your taxes due immediately to avoid interest penalties
• If you can’t pay the full amount, make arrangements with your local tax filing office for installment payments, deferred payments, etc; the more you keep them informed, the more information and tools they may have to help you through the process
• Throughout the whole business year, keep accurate track of your expenditures, and be prepared to back any claims with detailed records
• Be open, fair and transparent about all information and claims in your tax filing
• Follow the rules and regulations of each taxing authority
• Tax filing may be difficult for some business, corporate or other type of entities; acquire the services of an accountant to assist you in preparation of your tax return
• Several tax preparation & filing software packages exist that are user friendly, have easy to follow manuals, and have features such as electronic online submissions

Websites with Useful Tax Preparation & Filing Information

Here are some of the websites that provide some information on taxes.  Many more exist out there too, so it is worthy to do some further research.

US

• IRS   http://www.irs.gov/newsroom/content/0,,id=104608,00.html
• US tax tips  http://www.ustaxtips.net/
• H&R Block http://hrblock.com
• About.com   http://taxes.about.com/
• Year end tax tips  http://taxes.about.com/od/taxplanning/qt/year_end_tips.htm
• Small Business Tax  http://www.small-businessadvice.com/small-business-tax-filing-tips-for-2012

 

Canada

• H&R Block http://hrblock.ca
• Canada Revenue Agency http://www.cra-arc.gc.ca/menu-eng.html

Tax Preparation and Filing Software Packages

Here are a couple of options for tax preparation software packages, with many more out there for you to choose from.

• Turbo Tax   http://turbotax.intuit.com/ (US)
• Turbo Tax     http://turbotax.intuit.ca/tax-software/index.jsp  (Canada)
• H&R Block at Home  http://hrblock.com (US) http://hrblock.ca (Canada)

Whatever method you use to file your taxes, ensure you submit on a timely basis and that your submission is fair and consistent with taxation authorities and those regulations.  You will feel more at ease if you have kept good records and can back any claim if an auditor comes knocking and asking.

Strategy Plan One

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Business information, resources and tips for the entrepreneur

Fresh Start Initiatives Expanded and Other Tax Tips

Strategy Plan One

March 19, 2012 

IRS Fresh Start Initiatives Expanded

In blogging about more tax tips we decided to highlight some key points to today’s Internal Revenue Service’s (IRS) latest bulletin.  For taxpayers who have a balance of taxes owing and are finding it difficult to keep up, today’s note expands on the IRS’ Fresh Start Program.  

Here are the 3 key areas:

1. Penalty Relief – provides some relief for taxpayers from failure-to-pay penalties, essentially giving the taxpayer a six month extension to pay taxes
2. Instalment payments – for taxpayers who cannot pay all the balance owing,IRS allows negotiated instalment payments, with new maximum limits of $50,000 and extended time frames to six years to pay off tax debt
3. Offer in compromise – an agreement between a taxpayer and theIRS that settles the taxpayer’s tax liabilities for less than the full amount owed

For more detailed information on the above initiative, you should review the IRS link at http://www.irs.gov/newsroom/article/0,,id=255470,00.htm.  You will need to check in, contact and apply to the IRS for some of these initiatives.

Helpful Tax Tips

Here are some addition tax preparation and filing tips and information:

• Get organized – ensure you have the proper documentation and forms for your tax return
• Pay attention to deadlines; April 17^th is an important date
• Take advantage of tax deductions and incentives such as incentives around volunteering, donations, and charitable gifts
• Take advantage of tax exemptions on dependents
• Investigate and claim for the tax benefits for caring for parents
• This is the last year to claim the American Opportunity Tax Credit – be sure to claim this
• New form 1099-K – make sure you use this to report online income, payments received by credit cards, and other platforms such as PayPal.
• If you will be receiving a tax refund, spend it wisely, starting with paying down the most expensive debt with the highest interest rate charges

Deadlines to file are approaching, with over 1 month to go.  Check out the IRS website for up to date information, forms and information on preparation and filing.

Strategy Plan One

http://strategyplanone.com

Business information, resources and tips for the entrepreneur

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