The Small Business Tax Help Blog

Archive for the ‘Tax Withholding’ Category

Employee Stock Options

Upon the exercise or disposition of an employee stock option, a Canadian resident employee is generally required to include in income an employment benefit.

Question: A CONCERN: Do unemployed people ever give a false employer tax ID in order to claim an illegal tax rebate?

I’ve noticed after filing my taxes recently that basically anyone could theorhetically lie and say so and so large corporation employed me and took this amount of taxes and paid me this amount in wages. Reasonalbe amounts for withheld money and an a valid employer tax id/number seem to be the only necessary requirements. So is there a way the IRS can monitor and check this? I mean, with large corporations, like WalMart andTarget, how could they know someone was using their name and reputation to do something illegal?

* Also, this question is in relation to simple taxes like online filing and 1040easy. When someone uses those, they require very little information simply because a person is stating they haven’t made very much this year compared to other tax brackets.

I assume there has to be a system to stop this? Do companies do audits themselves to see how many claimed them for the IRS? or am I wrong, and sadly, large amounts of people employ these underhanded methods?

Answer: Employers send w-2's to the IRS in there employee's names. When a person lies about working there the IRS will flag the return since there isn't a matching w-2 from the employer.. Basically you will get caught, fined and maybe jail time for tax fraud.

Small Business Tax workshop Jan. 28

The Small Business Tax Workshop is a one-day workshop designed to help small businesses in southern Ohio learn ...

State Withholding Tax: Simply Stated

Roth IRA Rules

Kim Lankford responds to more questions about converting a traditional IRA to a Roth and opening an account for a child.

IRS TAX TIPS: Making Work Pay – Married (ASL, Captions & Audio)

ARC Energy Trust announces 2009 U.S. Tax Information

AET.UN and ARX – TSX) ARC Energy Trust announces its 2009 U.S. Income Tax Information to be as follows:

2009 Flu Summit: Community Mitigation Measures

Question: Does this sound normal for my federal tax withholdings?

I only work 4 days a week, 7 hrs a day. Last year I had a little over $400 withheld for federal. I just got paid yesterday and looked at what had been held for federal so far and its only been $49 for the whole year!? I was shocked!!! Could this be because of that dumb stimulus thing they were doing with everyones pay checks? I have never paid in taxes, but this has me a bit worried. I will be talking to my boss tomorrow, but I’d like some opinions.
Is there any way that I can have them start taking them out again?

Answer: Yeah, that "dumb stimulus thing" has put an extra $400 in your pocket. It's an advance on a refundable $400 credit that will appear on your tax return this year, compliments of Congress and the current administration.

Edit: If you insist on lending that back to the government just to get it refunded to you in April, fill out a new W-4 at work and have them take an extra $10 per week from your pay for taxes.

Don't count on windfall from U.S., California legislative analyst says

California has an "almost non- existent" chance of reaping a $6.9 billion windfall from Washington, D.C. to reduce its deficit, nonpartisan Legislative Analyst Mac Taylor said Tuesday in his initial budget review.