5. February 2010 by admin.

That depends on the AMOUNT of income AND the TYPE of income.  Filing is not required if all of your income is from W2 Wages, Interest, Dividends and Other Miscellaneous Inocme (excluding Social Security) AND if the total income is less than the Standard Deduction plus personal exemptions.

2009 example:A Single person’s standard deduction is $5,700.  Add a personal exemption of $3,650.  Total $9,350.  That means on the first $9,350 of income there is no Income Tax liability and NO filing requirement.  If the taxpayer is 65 or older, or blind add another $1,400 to the standard deduction for a total of $10,750.

But it’s not really that simple.  Let’s assume this single person’s only source of income was $1,000 of self employment income.  The Income Tax is zero BUT the return must be filed due to Self Employment Tax liability on Self Employment Income of $400 or greater!

Suppose the person’s self employment income is $200 and that’s all.  Sounds like no filing requirement.  The self employment income bottom line may be only $200, but let’s say the business of the self employed person generated $1,000,000 in sales with enough expenses to generate only a $200 profit. 

YES, there is a filing requirement!  Think about it.. a million dollars passing through a self employed person’s hand should be accounted for.  

Posted in Income Tax, General | No Comments »

26. January 2010 by admin.

Until you know you are going to stick with it (no offense, many clients try stuff and change their mind), I would not consider the extra paperwork involved with having the NEW LLC taxed as a corporation.  You can find more information on our website for Sub S Corporations www.USATaxHelp.com and also the why you really want at least an LLC as a business entity.

 If you know for sure you are continuing, then the “S” corp election for the LLC is usually an excellent decision.  Seriously, read the two handouts on our main website for “S” Corps and LLC’s at www.USATaxHelp.com

Posted in Sub S Corporations, LLC's, Income Tax, General | No Comments »

22. January 2010 by admin.

Per IR-2010-010 the Pension Protection Act of 2006 REQUIRES a non-profit organiztions that does not file the necessary information form for three consecutive years to AUTOMATICALLY lose their Federal tax-empt status.  This has been in effect since January 1, 2007.

 ENUF SAID!  Contact us for more info at USATaxHelp.com

Posted in Income Tax, General | No Comments »

6. January 2010 by admin.

CONSUMER ALERT! Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida corporation, Compliance Services, Inc.) is mailing notices to new business entities wanting “Annual Minutes” and a fee of $125. be paid for filing.

These notices are NOT from the Dept. of State, Division of Corporations. “Annual Minutes” are NOT required to be filed with any agency (in an audit the IRS may ask for them to prove you are acting as a corporation.. if it looks like a duck and quacks like a duck kind of thing….. if you need to know more about the QUACKing thing, contact us at www.USATaxHelp.com 

Annual Minutes are to be kept by the business entity itself. Please do not confuse these notices with the messages sent by the Division of Corporations reminding each business entity to file its 2010 Annual Report.

Posted in Newsletter Topics, Sub S Corporations, LLC's, General | 1 Comment »

6. January 2010 by admin.

NEW LAW! Effective July 1, 2009, the intention to register a fictitious name must be advertised at least once in a newspaper in the COUNTY in which the principal place of business will be located. Your local newspaper should be contacted for advertising information.

Posted in Newsletter Topics, Sub S Corporations, LLC's, General | No Comments »

3. December 2009 by admin.

2010 Standard Mileage rates for the use of a car (includes Pickups, Vans and Panel Trucks):

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations 

Runzheimer International conducts an annual study of fixed and variable expenses to operate a vehicle.  These rates are lower than 2009 (55.0 business, 24.0 medical or move  & 14 charitable).Please note the Business Mileage Deduction may not be used if a vehicle has been depreciated using MACRS or depreciated using  §179.

Posted in Income Tax, General | No Comments »

27. November 2009 by admin.

Client Disclosure Authorization

Posted in International Taxation, Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »

27. November 2009 by admin.

Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism

Posted in General | No Comments »

18. November 2009 by admin.

The current stimulus allows a small business about to default on a debt to borrow up to $35,000 from a lender to assist in making payments. The SBA (Small Business Administration) will pay the interest AND repayment of the loan principal is deferred for 12 months!  This is known as the American Recovery Capital (ARC) Loan Program.

Not all banks deal in SBA loans.  If you need a reference, contact us www.USATaxHelp.com

Posted in General | No Comments »

18. November 2009 by admin.

Currently, any tax preparer with 250 returns is required to e-file.  After 2010 the threshold drops to TEN!

Posted in Sub S Corporations, LLC's, Income Tax, General | No Comments »