The Small Business Tax Help Blog

Archive for February, 2011

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Question: If i file a FBN or DBA in California and get a tax ID number or EIN would i then be considered as employed?

I ask this because i have an idea of what to do to generate income, but i would want to do it legitimately. I lost my job about 7 months ago and have been receiving un-employment assistance. Would the filing of the FBN or DBA along with the filing of the EIN number jeopardize my monthly assistance (assuming i don’t generate any income of course.)

Answer: Any earnings from employment or self-employment must be reported. Filing a DBA or getting an EIN does not mean that you are employed.

Ask M&M: Difference between EIN and TPT numbers

By Mignonne Hollis and Mark Schmitt For the Herald/Review Dear M&M: Dear M & M: I am confused, what is the difference between an Employer Identification Number ( EIN ) and a Transaction Privilege Taxation ( TPT ) number? — Jim read more

Tips On Applying For A Tax ID Number

Question: What shouldn’t the board of directors of a nonprofit know? If the whole board doesn’t know it, who should?

I know that the board should have:
-Articles of Incorporation
-Bylaws
-List of Corporate Members titles, duties, roles and responsibilities
-List of Board Member Qualifications duties, roles and responsibilities
-Membership letter saying they are a board member
-Financial reports of what is in the bank account
-Access to minutes book
-Copies of all organizational policies
-Receipts for personal donations

But Should all of the board members have the:
-Tax ID #
-Dun and Bradstreet# (business credit report info)
-EIN #
-CCR information (government grants and contractor database info)
-Non-Profit Tax Exemption Status #
-The Bank Account Numbers
-Should they know what other board members have donated or just what they (themselves) have donated?

Should the whole board have this information or just the treasurer, Executive Director or Business Manager?

What shouldn’t the Board of Directors know?? What information is to much information?

Thanks in advance

Answer: You are asking the board of director’s to guide the decision of the foundation. They need to know everything which may be relevant to their decisions. For example, how much each has donated is probably a private matter and they should not be listed as individuals. However, total donations is going to be a number that they need to have.

Ask M&M: Qualifying for a HUB Zone certificate

By Mignonne Hollis and Mark Schmitt For the Herald/Review Dear M&M: I reside in Cochise County and was told that the entire county is HUB Zone Certified. Since that is the case, I should be automatically qualified, right? — Sam Dear Sam: Before you can apply for the HUB Zone program, you must first qualify. To qualify for the program, a business (except tribally-owned concerns) must meet the …

Getting Your Own Employer Identification Number

Question: Missed Estimated Tax Payments from contract work, what to do now?

Earlier in 2010, I worked as an independent contractor for 2 separate companies. I received payments for these jobs in July. I didn’t realize I had to make tax payments for that until recently. The total payments I received was $3738.75 so I don’t think I’ll be exempt from estimated payments. I’ve also been working full time now, and I have taxes withheld from each paycheck.

So, what do I do now? I believe I have to pay 15% self employment tax on that in addition to about 20 ish % for my effective tax rate for the entire year. I know I also have to pay about 8 or 9% to California. Do I send a check to the IRS and to the California government?

Answer: You might be safe if you’ve satisfied either of the following:
a) You’ve had enough of your full time pay withheld to cover 90% of the total taxes you end up owing for the year.
b) You’ve paid sufficient taxes in each quarter to cover your tax obligations from 2009. This is called safe harbor. As long as you cover your obligations from the previous year, it’s ok.

Labor’s Last Stand

The Nation — Emboldened by November’s election results, corporations and their right-wing allies have launched what they hope will be their final offensive against America’s unions.

California Life Insurance … Cheap Term Life Insurance Quotes

Question: Why do so many always complain about people on welfare when the amount of money that goes to them?

is trivial at best?

According to The Budget for Fiscal Year 2008, Historical Tables, total outlays for Means Tested Entitlements in 2006 were $354.3 billion. This was 2.7% of GDP and

Includes Medicaid, food stamps, family support assistance (AFDC), supplemental security income

(SSI), child nutrition programs, refundable portions of earned income tax credits (EITC and HITC) and child tax credit, welfare contingency fund, child care entitlement to States, temporary assistance to needy families, foster care and adoption assistance, State children’s health insurance and veterans pensions.

http://polecolaw.newsvine.com/_news/2008/01/08/1212663-how-much-does-welfare-cost

Answer: Because they are brainwashed into thinking these programs are far more than 2.7% of taxes paid and they are also not compassionate human beings.

Snyder’s Budget To Slash University Aid, Government Revenue Sharing

LANSING – The first shockwaves already are emanating from Gov. Rick Snyder’s expected budget proposal for the 2011-12 fiscal year with sources telling Gongwer News Service that Snyder plans a 15 percent cut in aid to public universities and a cut of about $200 million in revenue sharing to local governments.

The American Opportunity Tax Credit Student/Parent Forum

Question: received w2 and never worked for company?

received a w2 from a company in which i NEVER worked for. I have the EIN number, how can I find out about the company. I looked them up in phone book, no listing, called 411 no listing …. searched address on web found address but no phone number help is someone using my social security number

Answer: This could be some sort of SCAM ….. be careful!

What is the name of the company that you received the W2 from
and does the W2 include your correct taxpayer id #?

Do you still have the envelope that it came in and what is the postmark?

This can be tracked down, but you will need to keep all of the information on this bit together.

BLOG: “Best. Episode. Ever!” Toonzone Talks Cowboy BeBop

Today Toonzone’s “Best. Episode. Ever!” feature returns to discuss Cowboy Bebop, a show that has undoubtedly been one of the best-loved Japanese animated series in North America since it began airing on Cartoon Network’s Adult Swim block in 2001…. [read more]

The Amber Room