The Small Business Tax Help Blog

Archive for August, 2010

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Question: how to write a 147C letter to the IRS?

for verification of an EIN

Answer: Dear IRS,

I need another copy of the EIN verification letter. I have a payer who has received a TIN mistmatch letter.

My information is:

John Smith doing business as Smith’s Store.
100 Mail Street
Springfield, IL 60565

My SSN is…

Grantr.com Helps Grant Makers with the IRS Revocation of Exemption List

Good Done Great launches Grantr – http://www.grantr.com, the first free online service for verifying a nonprofit’s tax exempt status with the IRS. With Grantr grant makers and donors can be certain that their grants and donations are in compliance with the IRS rules.

Register Free Business EIN Employer Identification Number Online

Question: Do I Need Them To Submit W-9 Form?

I have a LLC (Limited liability company) business and I pay people for displaying ads on their website.

Now my question is, since I my company is LLC do I still have to withhold their taxes for IRS or is not required?

Answer: When you go to fill out 1099-Misc forms you are going to have to list their SSN/EIN, their mailing address and the name of the individual/company you paid. Where do you think you’re going to get that information from.

Thus the purpose of the W-9 form. You use the info off the W-9 to prepare the 1099s with. It is not your responsibility to “audit” the W-9 to ensure the information is accurate and up-to-date. Keep the W-9s on file for at least 3 years. If you get your tax return examined for these payments the first thing the IRS examiner is going to ask for is your W-9 forms. Since you are required by law to acquire the information and retain the W-9s, the IRS can disallow your claimed expenses outright if you cannot produce the forms.

G’Luck…

Mike Womack, Sr. Partner
Zero Degrees Tax LLP
Moore, OK
Lawton, OK

Porter County employee contracts, fringe benefits questioned in IRS audit

Porter County attorney Gwenn Rinkenberger is trying to buy some time in resolving issues in an audit report on county expenditures that was conducted over the past year by the Internal Revenue Service.

Backup Withholding for Form 1099-MISC

Question: Has California driven the Toyota plant to Canada by its excessive taxation used to support “entitlements”?

for illegal aliens

New United Motor Manufacturing Inc. in Fremont, California, will end production of Corolla cars and Tacoma pickups in March 2010, Toyota said in a statement. GM in June said it would end assembly of Pontiac Vibes at the plant, known as Nummi, and quit the venture as part of its bankruptcy reorganization.

Nummi has the capacity to make 420,000 cars and pickups each year. It only made money in 1992, the result of California’s taxes and labor and pollution rules, as well as the plant’s UAW contracts, according to an estimate by Credit Suisse Group AG analyst.

http://www.bloomberg.com/apps/news?pid=20601101&sid=aJlxuxndoOsM

Answer: California. I remember when it was a good state, before the teachers and other unions (UAW) really screwed it up. Then there are all the illegal aliens on the dole. What a mess.

Pa. lawmakers support Arizona immigration law

Illegal immigrants could soon find it harder to live and work in Pennsylvania. If some legislators, Republicans and Democrats, have their way, the people with illegal status would be exposed, and the people who hire them would be penalized.

California State Controller to suspend tax refunds, welfare checks, student grants

Question: Is a job seeker more likely to get an interview by providing their Social Security number on an application?

I was under the impression that the SS# is not necessary, unless one has accepted a position, so that the employer can withhold taxes, pay Social Security, FICA, etc. With identify theft being such a concern nowadays, should job seekers be giving their SS# out on all applications, whether online or in writing?

Answer: It should make no difference as far as hiring you…in fact…it is probably safer to leave it off the application….anybody who handles your application can see your SS#

Finance and Banking

While Ireland is widely recognised as a centre for UCITS funds and it led the way in the development of regulated hedge fund structures, its offering in relation to real estate and private equity funds is less well known.

File WI Withholding Tax-My Tax Account

Question: 2010 Child Tax Credit?

I’m sooo confused!!
I’ve been told that this year low income families will be eligible to receive $3,000 from the child tax income credit. Yet I can’t find anything on-line about this & knowing little to nothing about taxes to begin with I’m just going around in circles.
I’m 23, a single mom, live in Michigan, and had my son in January but have only worked 4mos this year earning approximately $2,500. Do I qualify? What am I looking at getting back? I know it’s a little early to be worrying about this but again, I live in Michigan & knowing the kind of money that I’m looking at having is essential to my survival. Does anyone do taxes for a living or is familiar with the rules & regulations regarding this years taxes?
Please help!

Answer: $3,000?? I wish! I haven’t heard anything about that but it looks like the $1,000 tax credit will still be available through 2010.

“The credit was set to revert to $700 for each qualifying child in 2005, but Congress passed the Working Families Tax Relief Act of 2004 to keep the Child Tax Credit at $1,000 per qualifying child through 2010, as long as you are within the income thresholds for your filing status.”

“Keep in mind that the child tax credit rate of $1,000 per child is scheduled to disappear after 2010, but there’s a good chance that Congress will extend it past that date or even make it permanent.”

Christie at 6 months

Governor is turing Trenton upside down.

Earned Income Tax Credit PSA