Maria Elena Lopez LLC Tax Service Accounting Bookkeeping And Fi

Maria Elena Lopez LLC Tax Service Accounting Bookkeeping And Fi

TAX SERVICE ACCOUNTING FINANCIAL SERVICE AND RENTAL PROPERTY MANAGER www.taxservicedc.com A full-service year-round income tax preparation company specializing in fully computerized federal and state tax preparation of individual and business returns. The Office Is Open Monday-Sunday From 9am-9pm Individual and Business e-file As a small business owner you need to understand how taxes are going to affect you and your business. It is important that you file properly avoid audits and claim the right tax deductions. The IRS will not process paper tax returns before the start date which will be announced in December. There is no advantage to filing on paper before the opening date and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. The April 15 tax deadline is set by statute and will remain in place. However the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. Here are a few tips that may ease the burden of tax preparation and to help you get ready for the April 15 2015 deadline. 1. Keep Good Records Proper record-keeping year-round is the first step to ensuring your taxes are filed accurately and that you have the paperwork you need to back-up your deduction claims should you be audited. 2.Understand Your Deductions What small business deductions can you take Do you have the documentation and original receipts to back them up Tax credits and deductions change each year. 3.Utilize the Small Business Jobs Act Tax Provisions The Small Business Jobs Act of 2010 signed into law by President Obama has over 17 tax provisions decreasing the tax burdens for small businesses--several of these provisions can be taken advantage of during this year s tax season. Utilizing these provisions will provide great savings for your business. 4.Remember the tax credits within the Affordable Care Act These tax credits will allow small businesses to cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014 the rate will increase to 50 percent. 5.Avoid Common Audit Traps It is very important to be aware of potential red flags and act on them before the IRS does Classifying Employees as Independent Contractors -- Independent contractors and employees are not the same and it s important to understand the difference. In the eyes of the IRS misclassification can be seen as an attempt to avoid payroll taxes and non-compliance can bring penalties and back taxes. Home Office Deduction -- This deduction is very specific and not all home-based businesses will qualify. Likewise if you run your business from a commercial location and claim the home office deduction you might trigger some interest from the IRS. Know how to determine if you are eligible to claim it and what specific expenses you can write off. Large Sum Miscellaneous Deductions If you claim a large amount of itemized deductions relative to your income the IRS will get suspicious. Likewise if you bucket a large amount of miscellaneous expenses you may raise eyebrows. Be specific and label every deduction. 6. Keep Business and Personal Expenses Separate The IRS scrutinizes personal expenses that may have been claimed as a business expense such as the use of a business vehicle for personal use. Be diligent about keeping good records. Maintain a separate bank and credit card account for your business. The IRS reviewed tax returns you prepared in the past year and found that many have a high percentage of traits they believe typically indicate errors on the Form 1040 Schedule C Profit or Loss from Business (Sole Proprietorship). This is the fourth year that the IRS is contacting selected tax return preparers nationally in an effort to improve the accuracy and quality of filed tax returns and to heighten awareness of preparer responsibilities. These contacts are another step in the IRS s increased efforts to ensure paid tax return preparers are assisting taxpayers appropriately. Tax Return Preparation Don t worry You found the right tax professionals. Our tax practice has been meeting and exceeding the needs of its clients in many aspects of tax return preparation. From the simplest to the most sophisticated financial transactions including negotiations and settlements with the Internal Revenue Service and the States. International Tax Whether you re a corporation with overseas operations or a business or individual needing to work out taxation of U.S. residents working abroad or foreign citizens working in the U.S. we can help you plot a course through cross-border taxation issues Multi-national businesses have special challenges and risks whether based inside or outside of the United States. Let us help you navigate such complicated issues as Expanding out of or into the US Selecting the right holding company Transfer pricing planning and compliance Sourcing of income and foreign tax credits Intercompany agreements including o Cost sharing and offshoring technology o Contract research and development o Cost plus arrangements International tax audits VAT and GST considerations Foreign tax withholding and treaty issues US compliance (Forms 5471 1118 5472 etc.) Dividend repatriation policy Cross-border mergers and acquisitions Review of US multi-state consequences FIN 48 analysis and reports Expatriation Filings (I.R.S. form 8854) and related analysis Every day the massive computer center at the IRS is getting more sophisticated it s just a matter of time before they catch up with you. This is not a situation to take lightly failing to file your tax returns is a criminal offense. If you do not file you can be prosecuted and punished with potential jail time one year for each year not filed. Why risk potentially losing your freedom for failing to file your tax returns Let us give you the peace of mind you deserve by helping you get in compliance with the law. If you voluntarily file your delinquent returns you ll likely avoid further problems other than having to pay the interest and penalties. If you wait for the IRS to file your returns for you they are filed in the best interest of the government usually with little or none of the deductions you are entitled to. Before anything can be done to extract you from this predicament all the returns must be filed. You must be current. In most cases you will likely owe taxes interest and penalties after the returns are filed. Once we see how much is owed we ll set a course of action to get you off the hook Filing a past due return may not be as difficult as you think. Taxpayers should file all tax returns that are due regardless of whether or not full payment can be made with the return. Depending on an individual s circumstances a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved. However full payment of taxes saves you money. Maria Elena Lopez MSA MBA Finance Tel (202)882-0935 Fax 202)248-6169 Mobile (202)489-7054 4416 Georgia Avenue NW Washington DC 20011 Tax Appointment Checklist 1. Social Security Card(s) 2. Drivers License(s) 3. Dependents Social Security Numbers & Dates of Birth 4. Last Year s Federal and State Tax Returns 5. Wage Statements - Form W-2 6. Pension or Retirement Income - Form 1099-R 7. Interest and Dividend Income - Form 1099-INT Form 1099-DIV 8. State Income Tax Refund Amount - Form 1099-G 9. Social Security Income - Form SSA-1099 10. Unemployment Income - Form 1099-G 11. Commissions Received Paid 12. Sales of Stocks or Bonds - Form 1099-B 13. Self-Employed Business Farm Income & Expenses - Form 1099-MISC 14. Lottery or Gambling Winnings - Form W-2G 15. Lottery or Gambling Losses 16. Income and Expenses From Rentals 17. Income from Partnerships S Corporations Trusts and Estates - Schedule K-1 18. IRA Contributions 19. Alimony Paid or Received 20. Child Care Expenses & Provider Information 21. Medical Eye Care and Dental Expenses 22. Cash and Noncash Charitable Donations (Learn how to maximize this deduction) 23. Record of Purchase or Sale of Residence 24. Mortgage or Home Equity Loan Interest Paid - Form 1098 25. Real Estate and Personal Property Taxes Paid 26. State or Local Sales Taxes Paid 27. Unreimbursed Employment-Related Expenses 28. Job-Related Educational Expenses 29. Educator Expenses 30. Tuition and Education Fees - Form 1098-T 31. Student Loan Interest - Form 1098-E 32. Casualty or Theft Losses 33. Estimated Taxes 34. Foreign Taxes Paid. It s important to understand the ramifications of not filing a past due return and the steps that the IRS will take. Taxpayers who don t file a past due return or contact the IRS are subject to the following Penalties and Interest will be assessed and will increase the amount of tax due. The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources. Thus if the IRS prepares this substitute return it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability. Once the tax is assessed the IRS will start the collection process which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property. Even if the IRS has already filed a substitute return it still makes sense for you to file your own return to make sure you take advantage of all the exemptions credits and deductions you are allowed. The IRS will generally adjust your account to reflect the correct figures. www.taxservicedc.com