The Small Business Tax Help Blog

Posts Tagged ‘taxes’

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Question: What does it take to start a tax preparer business? For example those small mom and pops shops type of?

Business? What schooling do you need? Where do you start?

Answer: for one thing you need to be qualified to prepare taxes for other people
there are courses offered at the community colleges in the fall semester, the tax services offer courses and you can find an on line course, year round at www.ctscsociety.org
some states require registration(there is no license) and within the next few years, IRS will have its own certification program, other than the Enrolled Agents

Overcoming 6 tax terrors when preparing your taxes

Afraid of the 1040 tax form? Relax, we have the remedies to combat your fears.

Bookkeeper Small Business Accountant Gold Coast

Question: Am I responsible for tax witholding for a hired independent contractor in new jersey?

I have a new business and will be hiring an independant contractor. I have a agreement ready and he is infact an independant contractor, not a W2 employee. Normally you don’t withold taxes for independant contractors, but someone said that for new jersey you have to? Does anyone know what the new jersey specific rule is or where I can find it?
For all of you worried about misclassifying, I have looked into it, he works his own hours at his own location, gets paid on a per job basis, and offers the same service to the public.

Answer: Get a W-9 from him with his social security number otherwise you have to make backup withholding on what is paid.

The fact that you have an ‘agreement ready’ doesn’t make the worker an independent contractor. If you have the right to control how the job is done the worker may be an employee. If you misclassify a worker, you can be held liable for taxes you should have withheld and you would also be responsible for medical bills if he gets hurt on the job. Review IRS Form SS-8 http://www.irs.gov/pub/irs-pdf/fss8.pdf for guidance.

Mercury Computer Systems Selected To Deliver Hyperspectral Imaging System For Multi-INT Wide Area Surveillance Equipment

Mercury Computer Systems Inc., a trusted ISR subsystems provider, announced that it has been selected to provide a SWaP-optimized hyperspectral image processing and storage subsystem for multi-INT wide area surveillance equipment used on unmanned aerial vehicles

self employment tax advice for IT Contractors in London E14

Question: I joined a consulting firm organized as an LLC. It is charging me for out-of-state taxes. Should it?

I received 70% of what is billed for my services to the client – the LLC retains the balance for its overhead and general partners. If I didn’t work, or the client didn’t pay, I didn’t get paid. I left the firm, earlier this year due to lack of work – but now they’ve come back to me demanding I pay state taxes.

I performed services in Washington State for a client business situated in Washington and never left the state, but the LLC is insisting that I pay taxes on income from California, Georgia, New York, etc. The firm apparently has individuals providing similar services at other client businesses in other states, Apparently the firm’s tax preparer is trying to associate my earnings with those other states.

I paid self-employment and federal income taxes directly from what I received.

I received a K-1 and filed tax returns properly for federal purposes.

Washington has no income tax.

It seems wrong on multiple levels. What am I missing?

Answer: As a partner, you shared in the income of the firm–not just the money you brought in. Since some of that income is sourced to California, Georgia, etc, you owe taxes to each of those states.

The fact that Washington doesn’t tax you is moot.

IRS will audit more rental real estate returns

If you have real estate property that is rented, you should be aware that IRS has been urged to increase the examinations of rental real estate.

Ch. 2 IRS; LLC Tax

Question: free file fillable forms?

My return was rejected (code 0103) because Total Federal Income Tax Withholding shown on tax form must equal the sum of withholding on Other 1099 and AK Dividend, withholding from Schedule K-1, withholding on Form W-2, and W-2G. withholding on any Form 1099-R and withholding on Form W-2G. I had federal withholding from my 1099-G. Where do I enter this withholding so that it matches line 61? I entered my W-2 withholdings on Form W-2 but I don’t see a Form 1099-G.

Answer: If you are as confused as your post you should not be doing a tax return without assistance*

Tips for last-second tax help

You have until Monday, April 18 to file your 2010 tax return, but you’re still waiting to do so. As the time ticks down, here, courtesy of the IRS media office, are some ways to avoid mistakes that could lead to an audit or even penalties and delays in processing:

Lorrie Janatopoulos Post DNT Forum.wmv

Question: Tax help please!!! EIN(employer identification number) on Schedule C?

I received a form 1099 misc for working at a construction company instead of a W-2 and I know I will have to pay the self employment tax, which I’m fine with, but I want to know if the EIN it asks for on Schedule C is in regards to me or the person who paid me????
Thank you

Answer: You would leave the EIN number blank. You NEVER enter the payer’s EIN on *your* schedule C.

(If you did, you would be linked to his tax bills and vice versa!)

Controller Diane Morgan surrenders contracts to Montgomery County Solicitors Office

COURTHOUSE — After denying Montgomery County Solicitors Office’s Right-to-Know request for hard copies of professional services contracts, Controller Diane Morgan turned over thousands of pages of documents on Thursday.

Owning Your Own Business – Part 6: Dr. Ray Hagins