|
|||
 |
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
|
||||
When you underpay tax, either on your personal or business return, you'll owe interest on the shortage. The interest accrues from the date the tax was due until you actually pay it. For example, say you requested an extension of time to file your personal return until October 15, and paid what you thought you owed with the extension. When you complete your return, you discover more tax is due. Generally you'll be charged interest from April 15 (the due date of your return) until you remit the additional balance.
When you overpay your taxes and do not receive a timely refund, the IRS is required to pay interest to you. In general, "timely" means a 45-day processing period applies before your refund will earn interest.
The IRS publishes the interest rates for underpayments and overpayments of tax each quarter. Here are the rates in effect as of July 1, 2015.
* 3% for overpayments (2% in the case of a corporation); * 0.5% for the portion of a corporate overpayment exceeding $10,000; * 3% for underpayments; and * 5% for large corporate underpayments (those exceeding $10,000). |
||||
|
||||
|
||
Have you gotten a tax bill you weren't expecting based on income you never received? Has your federal income tax return been rejected, or your refund delayed? These unanticipated incidents can indicate your tax identity has been stolen.
Here's what to do. - File Form 14039 with the IRS. The Identity Theft Affidavit notifies the IRS that you are a victim or potential victim of tax-related fraud. You'll need to include proof of your identity, such as a photocopy of your driver's license or passport
- File a report with your local police department. Under the Law Enforcement Assistance Program, you can complete a special form that allows the IRS to release information about the fraudulent tax return. - Notify the Federal Trade Commission, the Social Security Administration, your bank, and the national credit bureaus.- Notify the Federal Trade Commission, the Social Security Administration, your bank, and the national credit bureaus.- Notify the Federal Trade Commission, the Social Security Administration, your bank, and the national credit bureaus.- Notify the Federal Trade Commission, the Social Security Administration, your bank, and the national credit bureaus.
Once you file Form 14039 and validate your identity, you may receive an identity protection personal identification number. That number will let you file your tax return and receive your refund. Be aware that straightening out your tax account can take a year or longer. Call us for assistance. We're here to help. Once you file Form 14039 and validate your identity, you may receive an identity protection personal identification number. That number will let you file your tax return and receive your refund. Be aware that straightening out your tax account can take a year or longer. Call us for assistance. We're here to help. Once you file Form 14039 and validate your identity, you may receive an identity protection personal identification number. That number will let you file your tax return and receive your refund. Be aware that straightening out your tax account can take a year or longer. Call us for assistance. We're here to help. Once you file Form 14039 and validate your identity, you may receive an identity protection personal identification number. That number will let you file your tax return and receive your refund. Be aware that straightening out your tax account can take a year or longer. Call me for assistance. I'm here to help. |
||
|
|
||
As the year winds down, you might want to put serious tax planning on your agenda. Changes that have already taken place (the Supreme Court's decision on premium tax credits under the health insurance laws, for example) and those that are still in limbo (tax extenders) can affect what you'll pay this year.
The June Supreme Court decision upholding the premium tax credit means you'll want to schedule a review of your income to make sure the amount you're currently receiving is correct. The premium tax credit helps offset your health insurance policy premiums. If you requested that the credit be applied directly against what you're paying each month, this "advanceable" portion is based on your estimated income. Changes in your financial situation can affect how much you're eligible to receive, and could mean you will need to pay back part of the credit with your 2015 federal income tax return.
In addition, unless Congress acts before year-end, certain tax breaks called "extenders" may not be available for 2015. These breaks include the deduction for state and local sales taxes and the ability to make tax-free distributions from your IRA for charitable purposes. To discuss your situation and find the strategies that are most beneficial for you, please call my office. |
||
|
|
||
A new law signed in July changed the federal due dates for certain 2016 business tax returns and the annual "Report of Foreign Bank and Financial Accounts" (Form 114). The due date for personal income tax returns was not changed.
The rules coordinate due dates between personal and business tax forms and are intended to reduce the number of extensions and amended returns that are filed each year. The revised dates will have no impact on your business's 2015 federal income tax return. Instead, the new dates will be effective for 2016 returns. Changes include a March 15 deadline for partnerships (Form 1065), and an April 15 deadline for the annual "Report of Foreign Bank and Financial Accounts" (Form 114) and most C corporations (Form 1120).
The law also requires additional tax reporting from executors of federal estate returns filed after July 31, 2015, and enhanced information on mortgage interest statements (Form 1098).
Please call for a complete list of revised due dates and other changes. |
||
|
|
||
Tax Tip of the Week: Want to know more about "wash sales?" Read this article for more info and learn more about the tax ramifications before selling any securities.
Business Tip of the Month: As a business owner are you managing the finances of your company or are you letting the business handle itself? Read this article for some great tips on how to keep your business from going out of business. Financial Tip of the Month: Do you have a lot of equity in your home? Check out the advantages and disadvantages of using the equity in your home for your retirement.
Fraud Alert: Be alert to apartment rental scams! It can be very stressful looking for a place to live - you could be crunched for time, down to the wire or not finding that perfect place. This leaves you vulnerable to the fraudsters. Read this article for helpful tips on how not to get scammed. |
||
|
|
||
Let me know if I can help you with any Quickbooks problems.
|
||
|
|
|
|
https://www.facebook.com/pages/Linda-L-Heineman-CPA/266124360085715?ref=tn_tnmn
Sincerely,
Linda Heineman
Linda L. Heineman, CPA
email:
linda@llhcpa.com
phone:
626-577-0979
|
|