Federal Taxes - Intel to reverse $275M of accrued taxes - BusinessWeek
Thursday, March 29, 2007
| Intel to reverse $275M of accrued taxes BusinessWeek - Chip maker Intel Corp. said Thursday the Internal Revenue Service has closed its examination of the company's taxes for 1999 to 2002. ... |
 KARE | Editorial: DFL must take care on taxes, don’t over reach West Central Tribune, MN - The DFL party may be repeating the same overreach error with too many new taxes as the Republicans committed with the no tax-too many new fees strategy in ... Where is the dividing line MOA expansion gets a hand Letters from Thursday, March 29 |
Federal Taxes - FG, states, revenue agencies to share data on taxation—JTB - Vanguard
Wednesday, March 28, 2007
| FG, states, revenue agencies to share data on taxation—JTB Vanguard, Nigeria - ... their operations, just as the Joint Tax Board {JTB} has called on state houses of Assembly to enact laws that would put an end to multiple taxation. ... |
| Belarusian above-target performers given taxation privileges National Legal Internet Portal, Belarus - In particular, the taxation privileges include the value added tax (except for the one collected from commodities imported to the customs territory of the ... |
Federal Taxes - Single and Multi Owner LLC TaxesTip! Generally, the
Tuesday, March 27, 2007
Single and Multi Owner LLC Taxes
LLC owners must report their business income and losses on their personal income tax returns
Similar to a sole proprietorship or partnership you must report your income to the IRS. An LLC is not a separate tax entity like a corporation. The IRS considers Limited Liability Company a �pass through entity." Earnings are taxed only once. Profits and losses of the LLC �pass through' the business to the LLC owners. Owners (members) must then report this information on their personal tax returns. The good news is the LLC itself does not pay federal income taxes. But some states do charge LLCs an annual state tax.
Income taxes and the number of members in your LLC
The number of members in your limited liability company determines how it is taxed by the IRS.
Single-Owner Limited Liability Company Taxes:
If you are the sole owner of your LLC then the IRS taxes you much the same as it would a sole proprietorship. All profits and losses must be reported on your 1040 tax return (on the Schedule C attachment). You can not avoid taxes by leaving your money in the LLC's bank account. All profits in the LLC's accounts must be reported.
Multi-owner Limited Liability Company Taxes:
If there is more than one member of your LLC the IRS taxes you much the same as it would a partnership. Again the LLC itself does not pay tax on profits. Individual members must report their share of profits on Schedule E and attach it to their 1040 form. Each member pays taxes on their distributive share of company profits, as stated in the LLC operating agreement. Again, the LLC itself is not taxed by the IRS although there may be an annual state tax, depending on which state you are in.
State Taxation of Limited Liability Companies:
Although the IRS does not tax LLCs, California levies an annual minimun franchise tax of $800.00, they expect this payment within three months of forming your LLC and kindly send you a bill so you don't forget. Wyoming levies an annual State tax on of $100.00; California requires an annual List of Officers or Members filing, fee of $100.00; Delaware levies an annual franchise tax of $30.00.
Dennis Gardener is an assistant editor at small-business-assistance.
More small business information YOU CAN USE, available at small-business-assistance
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Federal Taxes - How to Save Taxes with an S CorporationHow
Sunday, March 25, 2007
How to Save Taxes with an S Corporation
Ever wondered why so many small businesses�more than 3,000,000 at last count�operate as an S corporation? Simple. An S corporation saves business owners big taxes in three separate ways:
First, as compared to regular corporations (sometimes called C corporations), S corporation owners can use the business's losses incurred during the early lean years on the owner's personal returns as deductions. For example, suppose a new S corporation suffers a $20,000 loss its first year and that the corporation is equally owned by two shareholder-employees, Smith and Jones. Smith and Jones each get a $10,000 business deduction on their individual tax returns because of the S corporation loss. This $10,000 deduction might save them each as much as $4,000 in federal and state income taxes.
A second, big S corporation benefit: As compared to almost every other business form, S corporations can save their owners self-employment or Social Security/Medicare taxes. Suppose, for example, that Adams, Brown and Cole independently each own businesses that make $90,000 a year in profits. Each business owner may pay $13,000 in income taxes. But, unfortunately, that's not the only tax they pay. Each owner also pays self-employment or Social Security/Medicare taxes.
For example, Adams operates his business as an LLC and therefore pays 15.3%, or roughly $13,500, in self-employment taxes on his profits.
Brown operates his business as a C corporation which pays all of its profits to him as a salary. Accordingly, Brown (through his corporation) also pays 15.3%, or roughly $13,500, in Social Security and Medicare taxes.
Cole's situation is different. Cole operates his business as an S corporation which means that Cole can split his $90,000 of profits into two payment amounts: salary and S corporation distributions. Suppose that Cole says only $40,000 of his profits are salary and takes the other $50,000 as a "dividend" distrbution. In this case, Carter pays the 15.3% Social Security/Medicare tax only on the $40,000 in salary. Carter therefore pays roughly $6,000 in Social Security/Medicare taxes�and annually saves $7,000 in taxes as compared to Adams or Brown.
S corporations also, sometimes, provide a third form of tax savings because S corporations don't pay corporate income taxes. This means that S corporations avoid the often-talked about "double-taxation" problem. However, the "no corporate income taxes" benefit often isn't a savings for small corporations and their owners.
But let me explain. Suppose that two corporations each earn the same pretax profit of $100,000 and are owned by Ms. DaVinci who pays the highest federal income tax rate of 35%. One corporation is an S corporation and the other is a C corporation. The S corporation can distribute the entire $100,000 in profits to DaVinci as dividends because there is no corporate income tax. DaVinci then pays $35,000 in personal income taxes on the S corporation profits, which means she nets $65,000 in after-tax profits from the S corporation. In comparison, the C corporation can't pay the entire $100,000 in profits to DaVinci. The C corporation first pays $22,250 in corporate income taxes. When the C corporation pays the remaining $77,750 to DaVinci as a dividend, DaVinci pays another $11,663 in 15% "dividend" taxes on the C corporation profits. This means that DaVinci nets roughly $66,000 in after-tax profits from the C corporation profits. In this case, DaVinci saves money with a C corporation in spite of having to pay the corporate income tax.
How to Get S Corporation Benefits
To create an S corporation and receive S corporation tax savings, you need to do two things: First, you must incorporate the business either as a regular corporation or as a limited liability company. Second, you need to make an election with the IRS to have the corporation or LLC treated as an S corporation. The S election is made with form 2553, available from the www.irs.gov web site. Note that some states (such as New York) require a separate state S election.
A final tip: S corporations can save you thousands of dollars annually, but your tax savings can't start until you elect S corporation status. If you're interested is electing S status to save on taxes for next year, you may want to call your tax advisor or attorney right now!
Redmond WA CPA Stephen L. Nelson is the author of QuickBooks for Dummies and more than 100 other books as well. He can be reached at http://www.stephenlnelson.com
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Federal Taxes - How To Grasp Small Business Taxes in the
Saturday, March 24, 2007
How To Grasp Small Business Taxes in the USA
I have collected information here to assist you with the overall requirements by the IRS so that you can plan your business a little better. However, as we all know there will be ammendments to these points raised below from time to time and you would be best to confirm anything you read on this page with the relevant department. You can simply do this by the internet at http://www.irs.gov/ when you think you need to.
The first pointy I would like to raise is the type of business you are in - this will determine what taxes you must pay and how you pay them. Here are the four basic types of business taxes.
- Income Tax
- Self-Employment Tax
- Employment Taxes
- Excise Tax
Let's run through them -
1. Your Income Tax
Just about all businesses apart from partnerships must file an annual income tax return. You should note here that partnerships file an information return. The form you use to do this depends on how your business is organized.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn your money or when you receive income throughout the year. In most cases, an employee usually has income tax withheld from his or her pay. Note - If you do not pay your tax through withholding, or do not pay enough tax, you may have to pay an estimated tax. If you are not required to make estimated tax payments, you will need to pay any tax that falls due when you file your return. For additional information refer to Publication 583, Starting a Business and Keeping Records at the IRS.
Tax For Those Who Are Self Employed
Self-employment tax often called SE tax, is a social security and Medicare tax primarily for individuals who are self employed. Payments of SE tax contribute to your coverage under the social security system. It is important to know that Social security provides retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
1. Your net earnings from self-employment were $400 or more.
2. You had church employee income of $108.28 or more.
Your Employment Taxes
In relation to employees, you as the employer have a number of employment tax duties that you must pay and forms you must file. These include the following:
1. Social security and Medicare taxes
2. Federal income tax withholding
3. Federal unemployment (FUTA) tax
You can gain additional information at Employment Taxes for Small Businesses
Excise Tax
You will have excise taxes levied on you if your business does the following:
1. Manufacture or sell certain products.
2. Operate certain kinds of businesses.
3. Use various kinds of equipment, facilities, or products.
4. Receive payment for certain services.
Excise taxes can relate to activities, such as on wagering or on highway usage by trucks. Excise Tax has several general excise tax programs. One of the major components of the excise program is motor fuel. For more details, refer to Excise Taxes at the IRS.
This article has been supplied courtesy of Bill Darken. Bill often writes and works closely with Small Business Answers who can help with more information on small business information. If the link is not active, you can paste this one into your browser - small-business-answers.com/ This site is dedicated to supplying the latest news and articles on small business to assist people progressing and to help with information and news. You can also look for small business information at small business loans. If this previous link is not working you can paste this link into your browser, loans-only.com/
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Federal Taxes - EEF joins calls for Brown to lower business taxes - Scotsman
Monday, March 19, 2007
 Scotsman | EEF joins calls for Brown to lower business taxes Scotsman, UK - THE Engineering Employers Federation (EEF) today became the latest body to join calls for lower business taxes ahead of Wednesday's budget. ... Brown Warned Over Taxes Industry urges Brown to cut taxes Brown tipped to ease high tax burden |
State report says paying taxes would not hurt tribe - Newsday
| State report says paying taxes would not hurt tribe Newsday, NY - The nation is so profitable that even if none of its lands were put into trust and the nation had to pay property taxes, the nation's survival would not be ... State report says paying taxes would not hurt tribe |
Federal Taxes - Choosing a College Savings Plan Posted By : Jonathon Hardcastle
Friday, March 16, 2007
There are two basic types of tax-free college savings plans, the Coverdell educational savings account and the 529 savings account. Each has advantages and disadvantages depending on the situation of the individual family.
Federal Taxes - Freelancers and Taxes: An LLC's PerspectiveHow To Reduce
Thursday, March 15, 2007
Freelancers and Taxes: An LLC's Perspective
When I was laid off from my last "secure" paying job I mentioned to my wife that I wanted to go into business for myself. With two small children at home, a mortgage to pay, and enough other expenses hanging over our heads, this option seemed somewhat crazy. Fortunately, a severance package and unemployment helped to ease my transition to freelance work and I managed to have some additional work lined up to get me started.
One of the first things I did was to set up my business as an LLC: a limited liability corporation. I used the services of LegalZoom to organize my company, saving myself some money over the services of a tax attorney. The advantages of running an LLC include: legal protection from suitors in the event I am sued for work that I have done. They can go after my business assets, but not my personal assets. In addition, the whole way of paying myself has changed: I don't receive a paycheck, but I do make disbursements. These disbursements are not subject to social security taxes, but they are taxed on the federal and state level. Still, with tons of deductions every year [I pay our family's medical bills for starters], our disbursements are fairly low. Livable, but low. Plus, I take advantage of IRA contributions for my wife and me. We are a one income family, something we decided to do even before children arrived on the scene.
The disadvantages of an LLC are few. Start up costs are more and you have to register with the state to keep everything in order. Still, the little extra legwork is worth it and marketing myself as an LLC has been useful especially when I tell employers that I have officially set up myself as a business. Employers seem to appreciate that I made a little extra effort to formally organize myself. In addition, some are happy not to have to furnish 1099 forms for work that I do for them.
Is an LLC right for you? That depends on what you want from one. Contact a tax accountant to gain more information. After nearly four years of business, I have grown to appreciate what an LLC offers and my customers seem to recognize that advantage as well.
Copyright 2006 - For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.
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Federal Taxes - D.C. School Reform: Everyone's Business
Sunday, March 11, 2007
Washington Post - No, it's not taxes. It's not federal spending. It's not even land-use planning and transportation. It's education. Specifically, education from preschool through high school. And more specifically, struggling -- some would say failing -- schools like
More Motivation To Be A Tax Informant
Hartford Courant - The Internal Revenue Service estimates that the difference between what Americans owe in federal taxes and what they actually pay every year is about $345 billion annually. In an effort to close this huge "tax gap," Congress and President Bush in
Free Federal and State Tax Filing
WANE-TV - We're about six weeks away from the tax filing deadline. For many of us, that means paying big bucks to have someone else do the paperwork. If you decide to figure taxes on your own, it doesn't have to mean a crash course in lengthy manuals from the
