| Greetings,
There are a few items that I want to bring to your attention while you are preparing your tax information for us. I did not want to wait until next month to get these details to you.
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| Federal Stumulus Payment
Located on the page with 3,6 in the upper right hand corner |
| Although the Federal Stimulus payment was paid to most taxpayers for their 2007 return, the Stimulus payment is actually computed on your 2008 tax return. In order to calculate the correct amount of your rebate, I need to know how much you received last year. Please make sure you give me this information. Many of the organizers I have received have not had this portion of their organizer completed.
If I am unable to get this information from you, I will let the IRS compute the amount of any additional Stimulus payment you may be entitled to. |
| California Use Tax
In-State Voluntary Disclosure Program |
| As all of us California residents know, the State government needs money. The State Board of Equalization (the sales tax folks) are agressively looking for unpaid sales tax.
Effective January 1, 2009, the state is beginning a voluntary disclosure program for California purchasers who are not required to hold a seller's permit but have a use tax liability.
A use tax liability is applicable if you have purchased an item that you did not pay California sales tax on, but would have if you had purchased it within the state. This would include out of state purchases, purchases on EBay, internet purchases, etc.
By taking advantage of this program, it will limit the time that the State Board of Equalization can make an assessment for prior taxes to 3 years. (Without this, they can go back as much as 10 years). Also, it will allow the State Board to waive late filing and late payment penalties.
For more information go to:
If you only owe use tax for 2008, please give us the amount of your untaxed purchases and you can pay the tax with your 2008 California income tax return. |
| W-9 Forms
Business owners - get them in advance |
| If you are using independent contractors for your business, you will need to have them complete a W-9 form. Many business owners neglect to get a completed W-9 form when they start doing business with an independent contractor. At the end of the year when it comes time to give them a 1099, the independent contractor either refuses or can't be found.
If you are going to be doing business with independent contractors, please make sure that you get a completed, signed W-9 before you pay them. Do not give them a check until you get a completed form. This eliminates any hassles later and lets them know that they are going to get a 1099.
For California businesses, you must also complete and file a Form DE542. |
