The Small Business Tax Help Blog

Archive for November, 2009

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TaxWatch: Tax moves to make in January

The tax laws are still in flux. We’re waiting for the estate-tax law to be written, and Form 5405 for the home-buyer’s credit isn’t ready yet. To top it off, IRS started the year by announcing a major step-up in enforcement of tax preparers. This is going to be an interesting tax season. Are you ready?

Reduce Capital Gains Tax in the Sale of a Business

Question: As a single member llc in Ct which has no current intention of hiring employees do I have to have a Fed EIN #?

Answer: Yes you do. You will need it for tax purposes and also when you are seeking business credit. Also if you are reselling or plan to resell anything (even if you are providing products to a reseller) you will need to exchange EIN certificates for tax purposes. You can get additional information from the IRS's website.

DreamWorks Animation Announces Feature Film Release Slate Through 2014

DreamWorks Animation SKG, Inc. today announced its feature film release slate through 2014. Â The Company's current plan features six original films and is anchored by three sequels based on its hit Kung Fu Panda, Madagascar and How to Train Your Dragon franchises.

Condo Fucks - Straight Outta Connecticut

Question: What tax forms do I need independent contractors to fill out for my small business?

I am starting an online tutoring business and hiring my tutors as independent contractors. Do I need them to fill out an IRS forms with me when I hire them? What do I have to do accounting-wise for my employees?

Answer: 1099 R

Work-Product Battle Reaches Supreme Court

Lawyers for Textron Inc., an aerospace and defense contractor, have filed a petition for certiorari in a closely watched federal tax case, asking the U.S. Supreme Court to resolve a substantial circuit split over the interpretation of the work-product privilege in Federal Rule of Civil Procedure 26(B)(3). The U.S. Chamber of Commerce and the Association of Corporate Counsel have submitted amicus ...

WEB ALERT: California Independent Contractor Withholding Proposal

Question: My car is insured but it is out of tax and mot, what will happen to me if I get stopped?

Im in abit of a loose, loose stiuation, My car is insured but it is out of tax and mot as of the start of jan 09, Last year my business went under and Im broke, Im trying to find work but am not having much luck, I cant afford the m.o.t and because of that I cant tax my car, what will happen to me if I get stopped? I need my car for interviews etc!

Answer: Well you either pay £54 for the MOT and £100(ish) for the tax or you get stopped, get a fine for over a couple of thousand pounds, get your car taken away and get points on your licence. Since you dont have MOT your insurance is likely invalid too so technically you are driving a completely illegal car on the road.
If you can't afford to run the car then park it up and use public transport instead, thats what its there for. Either that or cough up like the rest of us.

Tax break sells cars

A late rush to take advantage of the Federal Government's 50 per cent business investment tax break propelled new car sales to an all-time high in December.

New Car Business & Tax Breaks

Question: form 1040 ES vouchers?

I’m trying to fill out the 2008 1040ES form given this info:
2007Federal AGI: 237,000
2007 Federal Income Tax Liability: 41,500
Anticipated 2009 withholding: 30,000

I’m given a list of Estimated Tax Payments for 4/15/08, 9/15/08, and 1/15/09.
How would I fill out the first voucher that is due 4/15/09? How would I figure my amount of estimated tax I’m paying?
Okay, I mean the 2009 ES

Answer: The hard way involves estimating what the 2009 tax liability will be. If you know that amount, multiply by 90%, subtract $30,000 (the anticipated withholding), and divide the amount that is left by 4. If you do not know the 2009 tax liability, then take the 2008 tax liability, subtract $30,000 (the anticipated withholding), and divide the amount that is left by 4.

Weeding out the bad

New Yorkers who get paid to prepare other New Yorkers’ income tax returns are facing two new layers of government regulation designed to weed out the unscrupulous and the unskilled among them.

Tax Tips: Estimated Tax Payment