Category Archives: Business Services

What if you  didn’t file a tax return because your income was below threshold? What if you filed return but have not heard back from IRS. Did you move from your present address? If so, how can you notify IRS where to re-direct that money?

Follow these steps:

Unclaimed Refunds

Some people earn income and may have taxes withheld from their wages but are not required to file a tax return because they have too little income. In this case, you can claim a refund for the tax that was withheld from your pay. Other workers may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit, but must file a return to claim it.

• To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
• If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
• There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
• Current and prior year tax forms and instructions are available on the Forms and Publications page of www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
• Information about the Earned Income Tax Credit and how to claim it is also available on www.irs.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

• Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
• You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
• You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
• If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Most of us don’t look forward to filing our taxes, but we can always take a bit of comfort in that silver lining: the tax refund.

However, some are finding themselves having to wait longer than expected for their refunds. The IRS warned of one-week delays at the opening of tax season due in part to more stringent identity theft protection measures, according to Accounting Today, but filers are continuing to have issues receiving their refunds within the standard 10 to 21 days.

Even though the IRS has set up the “Where’s My Refund” tool via the official government website, taxpayers have continued to be confused by inaccurate or delayed projections as to when they can expect their refund.

The IRS reminds taxpayers in their FAQs that “the date ‘Where’s My Refund’ provides is the estimated date the IRS will issue the refund, not the date the taxpayer will get the refund.” It can take an additional five days for the refund to be posted.

The IRS also asks that taxpayers avoid calling the IRS directly, unless they are prompted to do so on the website. Changing refund dates do not indicate a problem with the filing or that additional action is needed.

Taxpayers can check the status of their filing 72 hours after they e-file or 4 weeks after mailing their paper returns. To access your refund status, you will need your social security number, filing status and exact refund amount.  Also, keep in mind these tips on how to protect yourself from identity theft.

More answers to frequently asked questions can be found on the IRS website.

If you’d like to speak with a Beaton Accounting tax representative for professional advice on your taxes, call us today for a FREE consultation: 631-921-6894.

Have a question or certain topic you’d like to see addressed in our next blog post? Just leave a comment, or email us at info@beatonaccounting.com

 

If you are a business located in one of the Credit Reduction states (New York, New Jersey, Connecticut and Rhode Island are included) and also paid unemployment taxes this year, listen up. This applies to you!

As you may have already figured out, the federal government’s recent decision to extend payment of unemployment benefits will affect the tax credit you earn for paying unemployment taxes. More specifically, it will shrink that tax credit — meaning you actually have to pay more.

This is because New York, New Jersey, Connecticut and Rhode Island are among the 20 states who have not repaid the money they borrowed from the federal government to these extended benefits.

So, when it’s finally time, here’s what you need to know.

Your “credit reduction” (a.k.a. the reason you have to PAY MORE) is calculated on Schedule A of the 2011 Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return.

For those filing through QuickBooks®, here’s something you’ll be relieved to hear. QuickBooks® DOES take this credit reduction into account and provides you with correct amount due, but it DOES NOT record an increase to your payroll liability account automatically.

Thankfully, we’ve found an article that shows you how you can this yourself, step-by-step. Click here to read it!

If you would like advanced QuickBooks® training in order to quickly file your own business taxes this year, Beaton Accounting can help. Our QuickBooks® ProAdvisors® are software gurus, and they can help you become one too.

If you’d like to take an even easier route, Beaton Accounting can file all of your business and corporate tax returns on your behalf! All of our tax preparers are experienced tax professionals to ensure the accuracy of your return.

Call us today for a FREE consultation if interested!

631-921-6894

Have a question or certain topic you’d like to see addressed in our next blog post? Just leave a comment, or email us at info@beatonaccounting.com.

At Beaton Accounting, if there’s one thing we want you to keep in mind most of all when filing your taxes this year, it’s to be extremely cautious with your personal information at all times.

With all of the personal information exchanging hands this time of year, it makes sense that criminals would target tax filers and tax preparers as prime victims of identity theft. These thieves steal your information in order to claim your tax return or tax refund for themselves, and they may even continue using your information to find jobs, make additional claims and more.

Here are few things you should know about identity thieves to avoid being the next victim:

–          The IRS does not initiate contact with taxpayers via email to request personal or financial information. If you get an email saying you’re being audited or getting a refund, it’s probably a scam.

–          Your identity may be stolen during tax season in a number of ways:

• Looking through your personal items (wallets, purses) when they are left unattended
• Looking through your trash for bills, invoices, etc.
• Posing as someone who needs your information
• Accessing information you provide to unsecure websites

–          Your social security number is one of the most important numbers you own. If stolen, the thief may use it to get a job, in which case the employer would file your thief’s income as your income. If the IRS tells you that you haven’t reported all of your income, you’ve probably become a victim.

To learn more about identity theft, secure websites and complete information on legitimate IRS activity, our tax professionals advise you to visit the official IRS website: www.irs.gov

If you opt to enlist a tax preparer this tax season to file your tax return for you, be sure to check out their policies on identity theft. In case something happens, you want to make sure that they will take responsibility for any foul play or loss of identity.

At Beaton Accounting, we ensure that all of our tax returns are completed safely and securely by a professional tax preparer. If you’d like to speak with a Beaton Accounting tax representative, call us today for a FREE consultation:

631-921-6894

Have a question or certain topic you’d like to see addressed in our next blog post? Just leave a comment, or email us at info@beatonaccounting.com

As the tax filing deadline for businesses inches closer and closer, there are a number of changes to the business tax code that business owners need to be aware of when preparing their returns (if you are determined to prepare your own returns, that is!).

One of the big changes is the introduction of Form 8937, which is called the “Report of Organizational Actions Affecting Basis of Securities”. This form is an informational return that requires issuers of securities to disclose actions they take that may affect holders of their securities.

For example, if your company issues securities, and at some point during the year your company takes an action (i.e. corporate tax merger, “F” reorganization, etc.) that would affect the basis of your holders’ securities, then you are required to report that action in a Form 8937. There is, however, some debate as to what types of actions qualify, so you should consult a tax professional for specific case analysis.

The idea behind this change is to give brokers and stockholders all the information they need to manage their portfolios, and also to make sure all affected parties have up-to-date information.

However, there are two very important aspects of this new reporting rule that you need to be aware of:

1. S-Corporations

If you are an S-Corporation, you can meet the reporting requirements by simply filing a timely K-1 schedule, thus making the 8937 form irrelevant for you.

2. Posting Online

Even if you are not an S-Corporation, you can get around having to file a 8937 by simply posting the necessary information on your primary website and making it available to the public for a period of ten years.

If you want to read more about this new form, you can access the IRS’s instructions for the form here: http://www.irs.gov/pub/irs-pdf/i8937.pdf.

However, if reading documents put out by the IRS is not your cup of tea (which makes you normal), feel free to call us at Beaton Accounting and we will be happy to explain the new form and its requirements to you.

Of course, if you are not inclined to file your own returns (as most business owners are these days), we have the experience and expertise to handle this for you for an affordable rate.