Tax Season Kickoff With New Office Memorabilia!
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Too many tax clients? Want to sell your tax practice?
Too many tax clients? Want to sell your tax practice? If yes, then I would like to extend to you an invitation to our practitioner network for tax client referrals & tax practice acquisitions – we offer a “dollar per client” or “% of fee”. We have had tremendous success growing organically, but we always enjoy and look forward to working with local tax preparers if for nothing else than to get tax practice tips. To discuss more, you can reach me at (949) 877-3143 or by email at MRarrache@MrSmartTax.com
Thank you.
Sincerely,
Owner – Mr. Smart Tax, Inc.
Economic Troubles Ahead? Clean Up, Save Up, Understand & Review
Whether you prefer hands on investing or hiring wealth managers, start saving money and protect your portfolio. Healthy cash reserves cover 12-24 months of living expenses, but 6 month reserves is a great start. Most importantly keep an eye on your investments and make smart moves with your money.
John Riley, AIF from Cornerstone Investment Services is worried about the economy. In his recent article published June 2016, he discusses 4 charts that indicate negative economic trends and 4 helpful tips to protect your portfolio .
Ultimately the key to fortifying your financial position is to clean up, save up, understand & review – Mr. Smart Tax, Inc. is here to help. Schedule your free initial consultation today!
(800)-425-0570 or email us at contact@MrSmartTax.com
Read full article by John Riley here…
Tax Day Freebies
While tax day might be a terrible day for some, there are some freebies out there that you can take advantage of. Read more here…
Iggy Azalea Tax Troubles & Tips For Paying Off The IRS
Pop singer Iggy Azalea has skirted confirming rumors of IRS troubles to the tune of $400,000. Iggy recently tweeted @IGGYAZALEA “The IRS gave the option to pay them monthly or lump sum. i picked monthly, who wouldnt?”
Great question Iggy. Read below for facts regarding late payments, installment agreements and tips for taxpayers who owe the IRS money.
Failure-to-pay Penalty – If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes. That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date. If Iggy owes the Feds $400,000, that means she is accruing $2,000/month of failure-to-pay penalty until her installment agreement is accepted, then reduced there-after.
Installment Agreements – An installment agreement is an option for those who cannot pay their entire tax bills by the due date. Penalties are reduced, although interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments. Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option. The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.Ten Tips for
General Tips for Taxpayers Who Owe Money to the IRS –
- Tax bill payments If you get a bill this summer for late taxes, you are expected to promptly pay the tax owed including any penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS.
- Additional time to pay based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at www.irs.gov or by calling 800-829-1040.
- Credit card payments You can pay your bill with a credit card. The interest rate on a credit card may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. To pay by credit card contact one of the following processing companies: Link2Gov at 888-PAY-1040 (or www.pay1040.com), RBS WorldPay, Inc. at 888-9PAY-TAX (or www.payUSAtax.com), or Official Payments Corporation at 888-UPAY-TAX (or www.officialpayments.com/fed).
- Electronic Funds Transfer You can pay the balance by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at www.eftps.gov.
- Installment Agreement You may request an installment agreement if you cannot pay the liability in full. This is an agreement between you and the IRS to pay the amount due in monthly installment payments. You must first file all required returns and be current with estimated tax payments.
- Online Payment AgreementIf you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at www.irs.gov.
- Form 9465You can complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope you received from the IRS. The IRS will inform you (usually within 30 days) whether your request is approved, denied, or if additional information is needed.
- Collection Information Statement You may still qualify for an installment agreement if you owe more than $25,000, but you are required to complete a Form 433F, Collection Information Statement, before the IRS will consider an installment agreement.
- User fees If an installment agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with lower incomes, the fee can be reduced to $43.
- Check withholding Taxpayers who have a balance due may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. A withholding calculator at www.irs.gov can help taxpayers determine the amount that should be withheld.
More info about Iggy’s Tax Troubles
Call Mr. Smart Tax, Inc. if you need help with IRS tax debt relief. (800) 425-0570
Best and Worst Job Prospects Per Industry
While the government talks about low unemployment figures, there is strong evidence that a lot of people have left the work force thereby artificially lowering the unemployment rate. Before you consider taking on a new career take a look at the following Economic Policy Institute graph illustrating unemployed vs job openings per industry.
LLC vs S Corporation – What’s the difference?
Most every business start-up has come across the question “LLC or S corporation?”.
While this is a very common question, the response is often different depending on who you are talking to.
It should be noted that an LLC might work for some while an S corporation could be better for others – there is no “one size fits all” approach to entity selection.
In short, here are a few pro’s and con’s for the LLC and S Corporation entity structure:
LLC –
- PRO – Divide profit as members see fit
- CON – Passthrough income subject to self-employment tax if member has personal liability for debts of LLC or actively participates in trade or business of LLC
S Corporation –
- PRO – Passthrough income is not subject to self-employment tax. Only employee-shareholder “reasonable compensation” subject to payroll taxes.
- CON – Only issue single type of stock and must distribute profit based on percentage of stocked owned
Of course there are many more pro’s and con’s for each entity selection – feel free to call us with any questions and will be happy to discuss more (800) 425-0570.
For more related information visit the following links:
http://tiny.cc/xjz22x IRS: Partners’ Share Of LLC Income Is Subject to Self-Employment Tax
http://tiny.cc/smz22x 5 Common Objections to Forming a Corporation or an LLC