BAY AREA TAXES

BAY AREA TAXES

September 15th Deadline Nears

by Bess Kane, CPA on 09/08/17

3rd-quarter payments of 2017 taxes are due Friday, September 15th.  Payment can be made electronically at the IRS Direct Pay site and the Franchise Tax Board Web Pay site. 

For information on why and how to determine your liabilities, please see my web page about paying estimated taxes

Also due on September 15th are tax returns for S corporations and LLCs.  The penalty for filing either of these returns late is $200 per month multiplied by the number of shareholders/members.  There may be additional penalties for failure to distribute Schedules K-1 to the shareholders/members.

 

4th-Quarter Payments of 2016 Taxes Due Monday, January 16th

by Bess Kane, CPA on 01/09/17

4th-quarter payments of 2016 federal and California estimated tax are due on Monday, January 16th.  Payment can be made at the IRS Direct Pay site and the Franchise Tax Board Web Pay site.

For information on why and how to determine your liabilities, please see my web page about paying estimated taxes.

 

Scammers Posing as Internal Revenue Service

by Bess Kane, CPA on 09/22/16

Two IRS scams you need to be aware of:

First, you may receive a telephone call from someone claiming that the government is suing you and demanding credit card or banking information to settle a debt.  But neither the IRS nor the FTB will call you until after you have received about a dozen notices which have been ignored.  Even then, they will not threaten to sue.

Second, the scammers are sending out what looks like official IRS notices, usually showing small balances owed so taxpayers will not question them.  You can tell if the notice is fraudulent if it directs you to make the check to "IRS", not "United States Treasury".  And also, the return address is Austin, Texas 78761-5264, which is not an IRS address.

 

Federal Quarterly Payment of 2016 Estimated Tax Due Next Week

by Bess Kane, CPA on 09/08/16

3rd-quarter payment of 2016 federal estimated tax is due on Thursday, September 15th.  For information on why and how to determine your liability, please see my web page about paying estimated taxes.

No payment of California tax is due.  Instead of 25% per quarter, the state now requires payments of 30%/40%/0/30%.  So 70% of your 2016 estimated tax should have been paid by 6/15/16.

 

Quarterly Payments of 2016 Estimated Taxes Due Today

by Bess Kane, CPA on 06/15/16

2nd-quarter payments of 2016 federal and California estimated taxes are due today, June 15th.

For information on why and how to determine your liabilities, please see my web page about paying estimated taxes.

 

Quarterly Payment of 2015 Estimated Taxes Due Friday

by Bess Kane, CPA on 01/11/16

4th-quarter payments of 2015 federal and California estimated taxes are due Friday, January 15th. 

For information on why and how to determine your liabilities, please see my web page about paying estimated taxes.

 

Section 179 $500K Limit Re-Instated and Made Permanent

by Bess Kane, CPA on 12/29/15

Legislation has just passed which retroactively makes permanent the $500K Section 179 expense limitation.

 

Time to Take Inventory

by Bess Kane, CPA on 12/29/15

If your business involves carrying a inventory, and you file taxes on a calendar year (most small businesses do), then it's important to count your physical inventory as close to January 1st as possible.

 

IRS Standard Mileage Rate Drops to 54 Cents Per Mile

by Bess Kane, CPA on 12/21/15

The IRS has announced that the standard mileage rate used to calculate the deductible cost of operating a vehicle for 2016 will be 54 cents per mile.

For more information on how to apply the standard mileage rate, please see my web page.

 

Expensing Equipment Rule Relaxed

by Bess Kane, CPA on 12/02/15

When buying items for your business, the question is whether the purchase can be immediately expensed or must be capitalized and depreciated over a number of years. 

The IRS has announced that for most businesses, the defining amount has been lifted from $500 to $2,500.  Purchases up to $2,500 will qualify for the safe harbor defined in the repair regulations as of January 1, 2016.  And the IRS has indicated that it will apply the new rule to 2015 purchases also.

Purchases over $2,500 will continue to often qualify for Section 179 treatment, and so create a tax deduction in the year of purchase.

Does Your Business Have A City or County Business License?

by Bess Kane, CPA on 09/26/15

If you file a California tax return showing that you have a business, the state shares that information with many cities and counties.  If the area where you are located participates and you do not have the proper business license, you will hear from the city or county.  Perhaps now is the time to start or catch up and avoid some penalties?  This applies to the self-employed as well as corporations, LLCs, and partnerships.

Have a Foreign Account? FBAR due June 30th

by Bess Kane, CPA on 06/21/15

If you have signing authority over a non-U.S. financial account, your FBAR must be filed with the Treasury Department by June 30th.  There are no extensions.  The failure to file penalty starts at $5,000. 

The filing requirement does not apply if all of your accounts combined never had $10,000 or more during 2014.

You may be required to file the FBAR even if you are not the owner of the account.  Often, parents add their children to their accounts.  Everyone agrees that the money still belongs to the parents, but if the children can sign, they may have an FBAR filing requirement.  Similarly, U.S. persons often open an account with a U.S. bank that has a foreign branch in order to transfer money.  This too may trigger a filing requirement.

 

 

Does Your Business Assist Your Partners or Employees With Health Insurance?

by Bess Kane, CPA on 06/01/15

If you reimburse your partners or employees for their health insurance, or send the payments directly to the insurance companies, you need to be aware of a very important change in the tax laws that takes effect June 30th.  You are required instead to adopt a company health plan, either through SHOP or with a health insurance company, and discontinue the reimbursements or direct-pays, or face huge penalties.

This is a complicated issue, so if you think that it might apply to you, please contact me.

 

 

Quarterly Payment of 2015 Estimated Taxes Due in Two Weeks

by Bess Kane, CPA on 06/01/15

2nd-quarter payments of 2015 federal and California estimated taxes are due two weeks from today, Monday, June 15th.

For general information on why and how to determine your liability, please see my web page about paying estimated taxes.

 

Time to File That 2011 Tax Return. Yes, 2011!

by Bess Kane, CPA on 03/13/15

Things happen: a death in the family, illness, divorce, relocations.  Sometimes filing your tax return just isn't a priority.  Often, people feel that there isn't any hurry because they are owed a refund.  But there is a time limit for claiming that refund, and for 2011 tax returns, it's almost here.  2011 personal tax returns must be filed by April 15, 2015 or the IRS will keep your overpayment.  And if you owe tax for 2012, 2013, or 2014, they won't let you net the amounts together.

If you owe tax, now is an excellent time to deal with it.  The IRS has officially relaxed its collection procedures.  Low-interest payment plans, and occasionally tax forgiveness, are easier to negotiate now.  So if you are behind with the government, let's talk soon.

 

 

Corporate Tax Returns Due in 2 Weeks, Monday, March 16th

by Bess Kane, CPA on 03/03/15

Federal extension:  File electronically or mail in Form 7004.  Filing an extension does not give you more time to pay the tax, so be sure to send in any payment due by the 16th.

California extension:  The extension is automatic when you file a federal extension.  Only send in the Form 3539 if you are also sending payment.

 

Due Next Week: Final Quarterly Payments of 2014 Estimated Taxes

by Bess Kane, CPA on 01/08/15

Final payments of 2014 federal and California estimated taxes are due one week from today, Thursday, January 15th.

For general information of why and how to determine your liability, please see my web page about  paying estimated taxes.

 

IRS Announces 2015 Standard Mileage Rate

by Bess Kane, CPA on 12/28/14

The IRS has announced that the standard mileage rate used to calculate the deductible cost of operating an automobile for 2015 will be 57 cents per mile.

Corporate Tax Returns Due Monday, March 17th

by Bess Kane, CPA on 03/11/14

Federal extension: Be sure to file by Monday and pay any tax due.

California extension:  The extension is automatic.  Only send in an extension request if you are also sending payment.

 

Due Wednesday: Final Quarterly Payments of Estimated 2013 Taxes

by Bess Kane, CPA on 01/08/14

The final payments of 2013 federal and California estimated taxes are due one week from today, Wednesday, January 15th.

For general information on why and how to determine your liability, please see my web page about paying estimated taxes.

If you would like to discuss your personal tax situation, please call or email me.

 

Bay Area CPA Since 1988
Answers to many of your tax questions can be found here
If you have a tax question that you think other people would be interested in, send it to me.  If I use it here or on my General Tax Information Page, I'll send you a Starbucks card!

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